Day: December 18, 2018

Community organisations to fight funding cuts

The North Edinburgh community pledged to fight Health and Social Care funding cuts at a packed meeting at Muirhouse Millennium Centre last night. Continue reading Community organisations to fight funding cuts

Council Funding: who’s telling the truth?

Real terms funding increase for local government?

The Scottish Government says:

The Scottish Budget delivers a total funding package amounting to £11.1 billion for local government.

This provides local authorities with a £197.5 million increase for day to day spending on essential public services in 2019-20, alongside a £207.6 million increase on their capital spending budget.

Finance Secretary Derek Mackay said despite a £2 billion reduction in real terms to Scotland’s block grant over the last decade, the 2019-20 Scottish Budget provides local authorities with a real terms increase in overall funding of over £210 million. This alongside a real terms increase in both the revenue and capital settlements.

Mr Mackay said: “The Scottish Government has continued to ensure that our partners in local government receive a fair funding settlement despite further cuts to the Scottish Budget from the UK Government.

“After removing the health uplift the Scottish Government fiscal resource block grant funding goes down by £340 million or 1.3% in real terms for 2019-20.  Despite that reduction, we have still provided a 2% real terms uplift in the total Local Government settlement for 2019-20.

“If local authorities choose to use their powers to increase Council Tax by up to 3% they can generate up to an additional £80 million to support the delivery of essential local services.”

2019-20 Local Government funding allocations.

Local Authority Revenue Capital Total Local Government Settlement Council Tax Increase Total Local Government Funding Plus Potential Council Tax Income
£m £m £m £m £m
Aberdeen City 335.935 36.645 372.580 3.669 376.249
Aberdeenshire 422.419 47.964 470.383 4.197 474.580
Angus 204.922 20.131 225.053 1.567 226.620
Argyll & Bute 195.978 21.878 217.856 1.559 219.415
Clackmannanshire 95.667 8.068 103.735 0.742 104.477
Dumfries & Galloway 285.816 27.803 313.619 2.088 315.707
Dundee City 298.885 27.361 326.246 1.921 328.167
East Ayrshire 231.385 22.897 254.282 1.686 255.968
East Dunbartonshire 186.682 13.850 200.532 1.921 202.453
East Lothian 174.747 15.824 190.571 1.660 192.231
East Renfrewshire 177.809 12.984 190.793 1.608 192.401
Edinburgh, City of 731.695 107.886 839.581 8.504 848.085
Eilean Siar 95.399 10.384 105.783 0.327 106.110
Falkirk 282.900 22.102 305.002 2.104 307.106
Fife 649.412 50.805 700.217 5.186 705.403
Glasgow City 1250.279 178.834 1429.113 8.655 1437.768
Highland 450.617 50.165 500.782 3.770 504.552
Inverclyde 166.007 11.719 177.726 1.082 178.808
Midlothian 162.730 17.000 179.730 1.427 181.157
Moray 160.995 15.355 176.350 1.287 177.637
North Ayrshire 276.359 24.705 301.064 1.920 302.984
North Lanarkshire 619.950 47.063 667.013 4.139 671.152
Orkney 74.592 8.283 82.875 0.280 83.155
Perth & Kinross 250.919 34.288 285.207 2.485 287.692
Renfrewshire 315.487 23.672 339.159 2.621 341.780
Scottish Borders 207.926 23.957 231.883 1.731 233.614
Shetland 85.703 9.026 94.729 0.289 95.018
South Ayrshire 202.043 18.863 220.906 1.848 222.754
South Lanarkshire 564.744 41.482 606.226 4.392 610.618
Stirling 169.881 14.923 184.804 1.503 186.307
West Dunbartonshire 188.777 13.361 202.138 1.268 203.406
West Lothian 319.734 22.711 342.445 2.333 344.778
Undistributed 150.768 82.221 232.989 0.000 232.989
Scotland 9,987.162 1,084.210 11,071.372 79.768 11,151.140

‘A Bad Deal for Local Government’?

COSLA says:

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 the Scottish Government’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.”

So who is telling the truth about local government funding?