The 2019-20 Scottish Budget provides Scotland with economic stability by making strategic long-term investments to strengthen and prepare the economy for the future, according to Finance Secretary Derek Mackay. However local government umbrella organisation COSLA says the budget will mean only more cuts to council services.
Mr Mackay said it is essential parliament backs the budget to provide as much certainty as possible for business and strengthen Scotland’s economic prosperity against the backdrop of the UK’s exit from the European Union.
Confirming his determination to build consensus for the spending plans, Mr Mackay said the budget also includes spending commitments to help mitigate where possible the impacts of leaving the EU, funding which could be spent on essential public services if Brexit can be avoided.
Mr Mackay said: “The Scottish Budget seeks to strengthen and prepare our economy for the future, whatever our relationship with the EU, and importantly, provides businesses in Scotland with much needed economic stability.
“In the coming weeks and months, I will work with all parties to build consensus for our spending plans in parliament and ensure we pass this budget which will help protect Scotland’s future prosperity.
“The Scottish Budget provides an increase of almost £730 million for our health and care services, invests more than £180 million to raise attainment in our schools, gives a vital boost to our economy through a £5 billion infrastructure programme and provides local government with a real terms increase in overall support through a £11.1 billion settlement.
“Our spending plans for 2019-20 include a commitment to mitigate the risks of Brexit as best we can, to enable our economy to thrive in any circumstances. If leaving the EU can be avoided, those resources currently being directed towards essential preparations can be reinvested into our public services and economy.
COSLA said it was disappointed that the value of the essential services provided by Scottish Local Government has not been recognised by the Scottish Government in Wednesday’s budget announcement.
COSLA went on to describe the proposed budget as a cash cut to Local Government’s core budget and said that as a priority would use the next few weeks to engage in meaningful dialogue with both Scottish Government and the wider Scottish Parliament.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said: “First and foremost my feeling is one of disappointment. Disappointment for councils, disappointment for communities and disappointment that Local Government’s role as a deliverer of vital services, an employer and a procurer has not been recognised.
“There is always smoke and mirrors around how those at the centre present their budget. The one message that the Scottish people need to take from today’s budget is that the Local Government’s core budget which provides our essential services has taken a hit.
“We have engaged positively with Scottish Government throughout these budget negotiations and we have run a positive campaign around the meaningful impact that our essential services make to communities throughout Scotland.
“The essential services that Local Government deliver are the foundations on which Scotland is built – today’s announcement means that these foundations are under severe pressure.”
COSLA President Councillor Alison Evison said: “Whichever way you want to dress it up, the reality of the situation is that yet again the totality of the essential services Councils deliver has been neglected by the Scottish Government.
“There is no scope for Local Government to mitigate the impact of these cuts as there has been no movement yet on local taxation – the 3% Council Tax Cap remains and there is no indication about discretionary taxation, including Tourist Tax.
“It is extremely frustrating that, having worked well on a range of issues with the Government this year, our contribution to meeting key outcomes across Scotland has not yet been acknowledged.
“What we have today is a bad deal for communities and for jobs. Given these proposals today, serious financial challenges lie ahead for councils.”
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