The Scottish budget 2016-17: what does it mean for digital?

THe Scottish Parliament, Holyrood, Edinburgh

The Scottish Parliament. Image by dun_deagh via Creative Commons

By Steven McGinty

Last week, the Scottish Finance Secretary, John Swinney, published his budget for the next financial year. Unsurprisingly, it begins by outlining the financial challenges facing the Scottish Government. Mr Swinney highlights that the Scottish Budget will continue to fall year-on-year, and by 2020 will have fallen by 12.5% in real terms since 2010. These figures paint a very bleak picture for Scotland’s public finances.

However, with this pressure on public funds, the Scottish Government has given a clear commitment to digital. The budget states:

The Government will take steps to extend digital applications in public services, increase the use of shared services, secure further value from procurement developments, ensure effective use of assets and reduce overlap between public services. The digital agenda will both produce savings and improve the quality of our services.

What funds have been made available?

In cash terms, the funding for Scotland’s digital strategy has more than doubled to £116 million. This has been achieved by merging a number of distinct budgets, which, according to the Scottish Government, reflects the integrated nature of the strategy. The majority of the funding has been allocated to capital expenditure projects, which have increased their share to £92.2 million.

It’s expected that these resources will cover areas such as digital infrastructure, digital participation, digital public services, and the digital economy.

What digital initiatives have been introduced?  

The Budget makes a number of commitments to support digital change in Scotland, although, very few details are given about specific digital projects.

The main initiatives outlined in the report include:

  • Spending over £100 million to improve broadband services, as part of the £400 million Digital Scotland Superfast Broadband (DSSB) programme. It’s expected that by the end of 2015, 85% of premises will be connected to a next generation broadband network, rising to 95% by the end of 2017.
  • Establishing an ‘Alpha Fund’ to help improve the efficiency and quality of digital public services. It’s hoped that this can be achieved – like most digital transformation programmes – by developing common services that can be used across government.
  • Supporting the Digital Transformation Service to develop digital public services from a user perspective and to realise the benefits of digital technology.
  • Developing the National Records of Scotland’s (NRS) digital services, including progressing with the ‘Data Linkage Framework’ strategy, which is expected to deliver data research projects that benefit the public. The NRS will also be preparing for the next Census, in 2021, which will mostly be delivered digitally.

What other announcements may impact digital?

For the ninth consecutive year, the Scottish Government have continued with their manifesto commitment to freeze council taxes. Councillor Michael Cook, who is vice president of COSLA, the Convention of Scottish Local Authorities, has argued that Scottish Government cuts to local government revenues are “unprecedented”, and are coming at a time when local government are already facing massive pressures. He suggests that this could lead to job losses and changes to services.

In addition, the Scottish Government has chosen not to change the Income Tax rate for Scotland – a power recently devolved to Holyrood. Mr Swinney argues that this new power is limited, and any changes would go against the principle that taxation should be proportionate to the ability to pay.

Both of these decisions will have implications for the digital sector. For instance, companies that provide services to local government may find some new challenges as local government revenues have been cut by 3.5%.  It may mean that companies will have to further prove their value, as local government looks to reduce their costs or improve the services they provide. Yet, it could also bring opportunities, as the need for technical solutions that provide efficiencies has never been greater.

The decision not to raise Income Tax may also benefit Scotland’s digital sector. If Income Tax had risen in Scotland, recruitment might have become more challenging, or at least more expensive, as skilled staff might have been tempted by lower taxes elsewhere in the UK.

Final thoughts

The Budget has not provided any real surprises. Local government needs to make savings, and politically, increasing taxes would be difficult, especially with the Scottish Parliamentary elections next year.

Therefore, the digital sector needs to focus on addressing the challenges highlighted in the Budget. This includes providing creative, efficient, technological solutions that support the everyday needs of both central and local government.


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Further reading: if you liked this blog post, you might also want to read our other articles on digital policy. 

 

e-Estonia: leading the way on digital government

By Steven McGinty

 “We should talk about a digital-embracing government, not e-government”

These are the words of Andres Kütt, system architect and adviser to the Estonian Information Security Authority. By this he means that the term ‘e-government’ implies a separation between digital and government. So, instead he advocates the term ‘digital-embracing government’ as it highlights that digital should be embedded within all aspects of governance.

Why does the Estonian view matter?

In Estonia, digital has become the norm, and most government services can now be completed online. They have managed to find a way of creating partnerships between the government, a very proactive ICT sector and the citizens of Estonia. As a result, the country of just 1.3 million people has become a leader in digital government.

The ‘core’ of the Estonian model 

  • Electronic ID cards

Key to the Estonian approach is the use of an electronic ID card. As of 2012, more than 1.1 million people have ID cards. The Estonian population have been described as ‘tech savvy’ and ‘pragmatic’. This could be the reason ID cards have been successful there, whereas in the UK concerns about threats to privacy have always led to their rejection.

The ID card acts as both an identity document and, within the European Union, a travel document. It provides a way to verify citizens using online services. The card is secure, and is used for activities such as internet banking, participating in e-elections, and buying public transportation tickets. Mobile phones can also act as an ID card, allowing citizens to confirm their identity online.

  • Population Database

The Estonian government has a national register (called the Population Database).  This provides a single unique identifier for all citizens and residents in Estonia. Similarly to the use of ID cards, these forms of large scale database are unlikely to be accepted by the British public. For instance, concerns were raised when it was suggested that a Scotland-wide ID database, which would have included records from 120 public bodies, could be introduced.

Estonian digital government services

  • e-Elections

Since 2005, Estonians have been able to participate in e-elections using their ID card or their mobile ID. Once a voter’s identity has been verified, the connecting digital signature is separated from the vote. This allows the vote to be anonymous.

In the 2011 Parliamentary elections, 140, 846 people voted online, representing 24% of the eligible voting population. Recent elections have also shown that online voting has had a positive effect on voter turnout.

However, security concerns have been raised over Estonia’s voting system. Researchers from security firm SafelyLocked have suggested that the software has insufficient security safeguards to protect it from hackers.

  • e-Health record

As of January 2010, Estonia’s citizens have been given access to their medical records via a medical information system. It contains information such as diagnoses and doctor’s visits and is accessed using the ID card.

What could the UK learn from Estonia?

In a recent presentation, Andres Kütt was the first person to admit that you can’t simply take the Estonian approach and implement it into another country. However, he does suggest that methodologies used by Estonia can be adopted by other countries to help them come to their own digital solution. There are also wider lessons that can be drawn from the Estonian experience.

In the UK, the Government Digital Service (GDS) have an ongoing arrangement with the Estonian government – a Memorandum of Understanding signed in 2013 committed the two countries to working together to advance digital public services. The GDS highlights that a lot of Estonia’s success comes from the fact that they started with no pre-existing infrastructure. This means that they were able to avoid legacy problems, such as the challenge of integrating older and newer systems.

However, Pete Herlihy of the GDS, reported that on a visit to Estonia he realised that:

  • The government needs to publish details of the data it holds for each of their systems
  • The government needs to publish an agreed set of open data and messaging standards and protocols, to allow easier communication between systems.

Final thoughts

The eventual solution for the UK will have to be different to that of Estonia. Yet it’s clear that when government, the private sector and citizens come together, it is possible to create a society that is digitally connected.

Here are just a few final facts about the success of Estonia.

  • 98% of banking transactions in Estonia are conducted through the internet
  • In 2013, over 95% of income tax declarations were processed through the e-Tax Board
  • Cabinet meetings have become paperless sessions using a web-based document system.

Further reading

IDOX is a market-leading developer and provider of a broad range of software solutions for UK and international public sector organisations – especially local government. These solutions are designed to help clients comply with regulatory requirements, as well as enable online delivery of public services.

The Carnegie Trust and the Wheatley Group: showing us how we can tackle digital exclusion

By Steven McGinty

As the government pushes towards ‘digital by default’, a policy which envisions most public services being delivered online, it’s worth remembering that 20% of the UK population still lack basic internet skills. Groups such as Citizens Advice Scotland (CAS) have raised concerns that ‘digital by default’ could significantly impact on vulnerable and marginalised communities, particularly those claiming welfare benefits. However, if every citizen had basic digital skills and could use online government services, it could save the public purse between £1.7 and £1.8 billion annually.

So, which groups are the most digitally excluded?

According to the UK Government’s digital inclusion strategy, digital exclusion occurs among the most disadvantaged and vulnerable groups in society. These include:

  • those living in social housing (approximately 37% of those digitally-excluded live in social housing);
  • those on low incomes (44% of people without basic digital skills are either on low wages or are unemployed);
  • those with disabilities (54% of people who have never been online have disabilities);
  • older people (69% of over 55’s are without basic digital skills);
  • young people (only 27% of young people who don’t have access to the internet are in full-time employment).

What are the main barriers to using online services?

In 2013, the Carnegie Trust carried out research into internet access in Glasgow. The findings suggest that there are three common reasons why people never go online:

  • the comfort of doing things offline (34% of people cited their preference for speaking to people on the telephone, or in person, as the reason they don’t go online);
  • a fear of digital technology and the internet ( 28% were worried about issues such as using technology and staying safe online);
  • the costs involved (20% of people highlighted pressures on incomes and the cost of internet connections).

What are the main drivers for people going online?

More recently, the Carnegie Trust carried out a new piece of research, replicating their Glasgow study in two new locations: Dumfries and Kirkcaldy. The study investigated the main reasons people choose to go online. The findings show that:

  • 56% of people went online to find information of interest to them;
  • 48% went online to keep in touch with friends and family;
  • 44% thought it would be an interesting thing to do;
  • 44% had to go online as part of their work.

 How can we encourage people to go online?

Both Carnegie Trust studies show that each individual’s journey to digital inclusion is different and that a ‘personal hook’ or motivation, such as the opportunity to communicate with family members abroad, is an important tool for encouraging digital participation.

Additionally, they also show that friends and family are an important source of help when people are taking their first steps online. For instance, the case studies in Dumfries and Kirkcaldy highlight that people would appreciate help from ‘trusted intermediaries’ or local groups.  Therefore, it’s important that digital participation initiatives make use of existing communities’ networks and tap into the support available from friends and families.

Wheatley Group

The Wheatley Group, which includes Scotland’s largest social landlord, the Glasgow Housing Association (GHA), has been heavily involved in addressing digital exclusion. They have developed a digital strategy to help social tenants access the internet and are committed to proving free or low cost internet access (maximum of £5 per month).

The Group has also been involved in two pilot projects: one which provides technology to 12 low-rise homes, and the Digital Demonstrator project, which tests the feasibility of low-cost broadband in multi-storey blocks. The pilot projects highlighted two important lessons:

  1. the role of the local Housing Officer was key for engaging with tenants
  2. it was important that communities and neighbours learned together.

In an ideal world, every citizen would be digitally literate, and be able to interact with government online. However, this is not the reality. The work carried out by the Carnegie Trust and the Wheatley Group provides a solid basis for developing digital initiatives and ensuring that citizens and communities are not left out.


Further reading: