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The Scottish Government’s decision to scrap public service advertising for the rest of this financial year – as part of emergency spending controls – could cause “dramatic long and short-term damage for the population at large, as well as to the economy”.
That is the stark warning from industry body the IPA, which has confirmed agencies were informed of the cuts earlier this week, with only unspecified “essential” campaigns expected to be allowed.
The move follows Scottish finance secretary Shona Robison’s letter to her fellow cabinet ministers, which said that “emergency spending controls will now be introduced with immediate effect” in order to fund public sector pay deals and amid uncertainty over this year’s budget.
It comes after the government stumped up an extra £77.5m to offer an enhanced pay deal to call off the bin strikes, which had been due to go ahead this week.
Robison said the public sector pay deals have intensified the severe cuts laid out in December’s 2024/25 budget, and is worried about the impact Chancellor Rachel Reeves’ financial audit may have. This is because Holyrood does not know how much money it will be issued by the UK Treasury.
In her letter, seen by The Times, she wrote: “Emergency spending controls will now be introduced with immediate effect. Any activity undertaken or commitment made that generates expenditure in 2024/25 must only proceed if it is truly essential and unavoidable.”
However, IPA director general Paul Bainsfair warned: “From detecting cancer early, to mental health support, to road safety, to flu vaccinations, to nursing and teacher recruitment and organ donation – to name but a few, public service campaigns play a vital role in changing behaviours to improve the health of the nation and the economy, and in doing so reduce public costs over the long term.
“While we appreciate the challenging financial position of the current Scottish economy, we very much believe that halting spend to public service advertising is a short-term decision that could cause dramatic long and indeed short-term damage for the population at large, as well as to the economy.
“Furthermore, regarding the impact of this decision on the Scottish ad industry, given that the Scottish Government represents the single biggest advertiser in Scotland, any stops to public service advertising could result in a loss of jobs in the sector.”
A spokesman for the Scottish Government said: “The Scottish Government balances its budget every year…the whole of the public sector faces a financial position that is extremely challenging.
“It is always necessary to ensure resources are used economically, efficiently and effectively, and increased additional scrutiny will now be applied to expenditure.”
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