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?
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