■ WORKING LIFE | FD PROFILE SCOTTISH REVOLUTION AS UK SPENDING IS SLASHED, ALYSON STAFFORD HAS TO KEEP A TIGHT GRIP ON SCOTLAND’S FINANCES, WRITES IAN FRASER ne aspect of her job that Alyson Stafford HALFWAY HOUSE relishes are her interactions with Scottish Scotland is in a halfway-house position from a fiscal politicians, including first minister Alex perspective. Since devolution in 1999, the government OSalmond and finance minister John has overseen an annual spend, £35bn in 2010-11, on Swinney. ‘What makes this role really interesting are the ‘devolved’ matters including health, education, housing, strategic aspects of the work,’ says Stafford, the finance transport, justice, policing, rural affairs and economic director to the Scottish government. The 44-year-old development. But the country remains part of the UK, blonde Englishwoman has been based in Scotland for which it depends on for all its revenues. a decade. It’s a system that The Economist magazine believes ‘That includes advising the Scottish cabinet encourages fecklessness among the ‘numpties’ (its on financial strategy; how to achieve sustainable word for Scottish politicians) who govern Scotland, economic growth – that’s a key purpose of the current encouraging them to behave like ‘teenagers on government. It also means ensuring that any reforms of an allowance’. public services delivery going forward are underpinned Scotland’s semi-independent dependence also gives by sound finances.’ rise to flash points. Salmond’s desire for greater fiscal Stafford is not a civil servant in the Sir Humphrey powers for Scotland does not go down particularly well mould. During a one-hour interview in St Andrews in Whitehall and Westminster. And it means the Scots House – the monolithic art deco-style headquarters are more or less powerless to influence the extent of of Scotland’s civil service, built as the nation entered public sector cuts being imposed by chancellor an earlier period of austerity 70 years ago – she is George Osborne. courteous, relaxed and displays a keen sense of humour. Finance minister Swinney has already said that these Even though she confirms she does work closely cuts, outlined in Osborne’s comprehensive spending with Swinney, she refuses to elaborate on whether she review on 20 October, would see Scotland’s budget regularly attends cabinet meetings. ‘I don’t really want slashed by £1.3bn in cash terms in 2011/12 versus to go into the particular dynamics and settings.’ 2010/11 with an £800m reduction in the capital budget, Asked if she is Mr Swinney’s boss or if he is hers, down 25%. He has attacked the cuts, saying they are Stafford laughs. She then clarifies the position: ‘My boss ‘too deep, too quick and in the wrong place… likely to is the permanent secretary Sir Peter Housden [who destroy jobs and risk the economic recovery’. succeeded Sir John Elvidge as Scotland’s top civil servant Meanwhile, Stafford and her team were busy in July 2010]. Our role is to advise the cabinet secretaries, preparing two versions of the Scottish government’s providing them with material that enables them to budget. First was an actual budget, incorporating the advise cabinet. We have to ensure that ministers are spending cuts for 2011/12 – whose passage she has well-placed to make choices about how resources are been helping to steer through parliament. But she was deployed across Scotland.’ also asked to create a ‘fantasy’ budget charting how 34 DECEMBER 2010 | ACCOUNTANCYMAGAZINE.COM Photography: Tina Norris ■ WORKING LIFE | FD PROFILE different things might have been if Scotland had fiscal was a sector of the health service that I hadn’t worked CV autonomy or, as Swinney put it, ‘demonstrate how full in and I was really interested in strengthening my fiscal powers can deliver a growth strategy for Scotland’. spectrum of experience.’ Who: Alyson Stafford Stafford was born in 1965 and raised in One of her key roles there was putting together When: December 1965 Northamptonshire. She was an accomplished classical a financial strategy, including refocusing business Where: Northampton pianist at school, then went up to St Hugh’s College, planning, procurement and supply chain. One of her Qualifications: BA and MA Oxford, where she gained a degree in geography. As a biggest transactions was the £28m sale of the redundant in geography from St Hugh’s student she was a member of the Industrial Society, but Gogarburn psychiatric hospital site to the Royal Bank College, Oxford; ACA; CPFA. also played jazz clarinet and classical piano. She sang in of Scotland, whose boss Fred Goodwin wanted the site Work: Audit manager, Grant choirs, since ‘you cannot always carry a piano around for a campus-style headquarters on the outskirts of Thornton; general manager, with you. A voice is more mobile!’ Edinburgh. Even though RBS was permitted to gazump Dr Randell & Partners; deputy In her first year at Oxford, Stafford secured a the Queen Margaret University offer for the 80-acre site, director of finance – financial traineeship with Grant Thornton. On graduating, Stafford insists her behaviour was above board: ‘There is strategy, Northamptonshire she joined its Wellingborough, Northants, office and a requirement in the public sector to ensure that value Health Authority; chief qualified with the ICAEW in 1992. But she did not for money is secured; and that the best value is secured executive, Northampton stay long and moved soon afterwards to Dr Randall & from any land or any other asset transaction.’ Commissioning Primary Partners, a mid-sized medical practice in Northants, to After four years with Lothian, Stafford moved to Care Group; chief executive, be general manager. the Argyll & Clyde health board as divisional chief Northamptonshire Heartlands Stafford says she was attracted by the health service executive. Her task there – to restore the organisation Primary Care Trust; director of because it was going through a period of change. to financial health after it had sunk into the red – was finance, Lothian Primary Care Fund-holding practices were flavour of the month. aborted after the Holyrood government pulled the NHS Trust; divisional chief ‘It was a question of bringing them from a “corner- plug on Argyll & Clyde. Stafford declined to comment executive, NHS Argyll & Clyde; shop” mentality – and I’m sure they wouldn’t mind me on her time there. director of finance, acting saying this – into something that was an efficiently- She landed on her feet, however. She returned to director general – finance, run business. You will see there is a common pattern Edinburgh as finance director of the Scottish Executive director general – finance, to all of my roles: all were about bringing in change, (as it was then called), initially answerable to the Lib- Scottish government. managing change and often pushing the boundaries.’ Lab administration of first minister Jack McConnell. Life: Playing music. Grade Stafford held two further senor financial roles with Given that few of her predecessors in finance roles eight piano – enjoys playing the Northants health service before venturing north in had been qualified chartered accountants, she says Chopin. Walking in the Pentland November 2000. She was attracted by the prospect of that her early focus was ‘improving strategic financial Hills with her partner and dog. becoming finance director of the Lothian Primary Care management and financial risk management’. Travelling. Was awarded a CBE in NHS Trust, one of the UK’s largest NHS trusts, with a June this year. £300m turnover and 7,000 employees. Stafford says: ‘It STERLING TRACK RECORD iPod: Chopin, classical piano, What she did inherit was a bespoke accounting system some jazz ‘a real eclectic mix’. from Oracle, which she said she intends to develop and roll out across the Scottish public sector. While declining to discuss the specifics, she insists that this system is performing well: ‘We have had an impeccable track record. Our accounts have had a clean bill of health for the last five years.’ The books are audited by Audit Scotland, which outsources the audit of some subsidiary entities and quangos to a panel of major accounting firms. They are also scrutinised by the committees of the Holyrood parliament and by three non-executive directors of the Scottish government: PwC consultant Bill Bound; Heather Logan, a former insurance executive at Scottish Amicable; and David Fisher, former human resources director at HBOS. Stafford says that financial performance is only 0.1% adrift from the Treasury-allocated budget. ‘That is an IN FIGURES: extremely small margin of error; very, very narrow. That’s ALYSON been carried out to a stringent statutory compliance STAFFORD regime, from parliament; and we have also had an unblemished record from audit on that.’ First salary: £50 a week, She said that the government’s last three-year vacation work at Grant Thornton spending plan, approved in November 2007, ‘provides before going up to Oxford a framework for subsequent choices and investments’. Salary now: £125,000 to However, there has to be flexibility built in to cope with £136,000 unpredictable events. One example of ‘flexing’ came in Size of finance function: circa August 2008, when the government brought forward 200 £293m of capital spending to assist the country’s Time in post: Five years, six beleaguered construction sector in the wake of the months financial crash. 36 DECEMBER 2010 | ACCOUNTANCYMAGAZINE.COM FD PROFILE | WORKING LIFE ■ ‘It was a question of bringing them from a “corner shop” mentality... into something that was an efficiently-run business’ Making spending cuts is going to be culturally very difficult for Scotland’s political class. Under New Labour, Scotland’s politicians grew accustomed to inflation-busting budget rises, which, combined SCOTTISH GOVERNMENT FACTS with a requirement to spend the entire £35bn block ■ The Scottish government is the devolved civil service but ‘owe their loyalty to the grant, led to spending indiscipline.