Empowered Communities? Proposals outlined to shape consultation

Initial proposals designed to deliver fundamental reform of local governance have been set out to help shape the debate on improving public services.
The possible changes, if implemented, could help achieve a better balance of decision-making powers across the public sector to ensure investment is focused on delivering improved services.
Initial proposals – which have been shared with COSLA and Holyrood Committees – include:
- Replacing current local government arrangements with a smaller number of regional authorities to focus on strategic decision-making alongside a substantial number of community authorities with a focus on local decision-making
- Separate arrangements for island communities have been suggested in recognition of their particular needs
- Councillors sitting on both community authority and the associated regional authority to remove the need for a further layer of elections or additional tiers of bureaucracy
- Ensuring regional administrative corporate structures support both regional and community authorities

Deputy First Minister Jenny Gilruth said: “Reforming Scotland’s public sector is about delivering the best public services for people across Scotland.
“We need to ensure investment is focused on frontline delivery, with the right staff in the right roles to empower communities and deliver real improvements in public services.
“Some decision making is best delivered at national level and regional level while others better sit closer to communities and we must get that balance right. Existing local government responsibilities could also be extended, including enhanced roles in economic development and business support so that individual areas can reflect local strengths and ambitions.
“These proposals are intended to provide a starting point to facilitate debate and discussion as we work to deliver reforms that strengthen public services and improve outcomes for the people and communities we serve.”

Commenting on the Scottish Government’s public sector reform proposals for local governance, STUC General Secretary Roz Foyer said: “Whilst the Scottish Government have the laudable ambition to strengthen local democracy, it’s absolutely for the birds to think the sheer scale of this local government reform can be achieved without the initial and substantial investment required to bring about change in our communities.
“There is an argument that community authorities can improve decision making but only if the funding exists to deliver these services. The Scottish Government must be clear that, in the short-term, this will cost money – not save it.

“You cannot credibly claim to empower communities whilst looking set to cull 20,000 public servants who would, in reality, be required to get these reforms off the ground in the first place.
“Unions will continue to monitor the government’s proposals and will engage in good faith. However, we must be clear that any reforms forthcoming must not be a mere smokescreen for brutal cuts cosplaying as progress.
“Real progress means ending the £3 billion outsourcing within the public sector, delivering sectoral bargaining within social care and properly funding our public services through progressive taxation that builds, not bulldozes, our local government and public services.”

Jonathan Carr-West, Chief Executive, Local Government Information Unit (LGIU), said: “Today’s proposals for reform of local governance are ill-advised and entirely impractical. Expecting councils to engage in meaningful discussions and reach an agreement based on this within a mere 10 weeks is entirely unrealistic.
“The plan is clearly half-baked and raises numerous unanswered questions, such as what exactly will the new regions be and how will the geographies of community authorities be decided and by whom?
Crucial service sectors are similarly glossed over without practical detail. On education, suggesting that certain responsibilities be devolved locally to community authorities while empowering headteachers effectively strips local councils of education oversight.
“Transitioning to these regional and community tiers will also incur significant financial costs that remain totally uncalculated. Meanwhile, the statement provides zero clarity on social care: is it destined for nationalisation, takeover by two new NHS Boards, absorption into the new regional authorities, or some confusing hybrid of all three?
“Scottish Government must learn from England’s failings on reorganisation and understand how notoriously complex, costly, and difficult it is. It consumes immense energy and attention, distracting everyone from core priorities. If you are going to attempt it, you need absolute clarity on geographies rather than rushing straight to structural fixes.
“Real regional collaboration and stronger community engagement can easily be achieved within existing local authority structures—it doesn’t demand structural change. Substituting structural upheaval for real progress simply reflects a lack of imagination, a reluctance to put in the hard yards of true collaboration, and the vanity of chasing a political legacy.”

COSLA President, Councillor Shona Morrison, has responded to Scottish Government’s proposals for Local Government reform: “Today’s statement gives some clarity to the Scottish Government’s intentions around the future of local government and public service reform.
“COSLA has been clear that public service reform will only succeed if it is rooted in communities and that any changes to our governance landscape must enhance local democracy and bring decisions closer to communities.
“Councils will engage with Ministers to shape the future of local democracy. We will not support reforms that dilute local democracy or remove accountability from the people we serve.
“COSLA’s membership will consider these proposals from Scottish Government and continue constructive dialogue on what may be a fundamental restructuring of governance in Scotland.”
COSLA Leaders will meet on Friday to discuss public service reform proposals.

Earlier this month (11 September) COSLA confirmed that Local Government will engage constructively in the Scottish Government’s proposed three-month dialogue on public service reform, but participation must not be mistaken for agreement to any predetermined structure or transfer of responsibilities.
Councillors are elected by their communities to represent their interests. It is therefore vital to public trust that engagement is meaningful and truly informs any change to public services.
Council Leaders are clear: public service reform must be developed jointly by Local Government and Scottish Government, grounded in evidence, focused on outcomes, and shaped by the communities and workforce who will be most affected.

COSLA President, Cllr Shona Morrison, stated clearly: “Public service reform will only succeed if it is rooted in communities, not organisational charts. Local Government will engage with Scottish Government, but we will not support reforms that dilute local democracy, centralise decision-making or remove accountability from the people we serve.
“Decisions around public service reform must be made in agreement between Local Government and the Scottish Government and have the endorsement of councils on any issue affecting them.”
There will be no “one size fits all” approach
Public services should be designed with the focus being on outcomes, not organisational structures.
Services should remain local and closest to communities by default, work regionally where scale adds value, and operate nationally only where there is a clear benefit. Protecting local accountability of our public services is essential. Councils already have practical proposals for greater collaboration, shared services and stronger partnership working across the public sector.
Social care must remain local
Council Leaders have once again reaffirmed that social care and social work services must remain within Local Government and be accountable to local communities.
Social care and social work should be an equal partner to the NHS not subordinated to it.
Any approach to social care reform must recognise that it is not simply about meeting individual needs, but about removing societal and structural barriers, advancing inclusion, and supporting people have choice, control, and be able to participate in their communities. Local Government must be an equal partner in shaping future arrangements.
Communities and Staff Must Be Heard
COSLA is seeking assurance that communities, the workforce and their Trade Unions will be fully involved, and that evidence is not sidelined by a compressed timetable. Scotland already has a strong foundation for reform through years of work on local democracy and democratic literacy.
The Financial Case for Public Service Reform
Councils need clarity on expected costs, savings, risks and the investment required to make any change successful. Public Service Reform cannot become a vehicle for cutting the Local Government settlement, and we cannot afford to put our communities at risk like that. Sustainable reform requires funding certainty, investment in prevention and resources that match responsibilities.
Looking at the Whole System
A debate on local governance must not focus solely on councils. COSLA believes there is a strong case for considering whether some functions currently delivered nationally could benefit from local democratic accountability. Councils recognise and have been progressing opportunities for greater collaboration across the wider public sector – but these should be underpinned by local knowledge and understanding of needs.
Key Messages from COSLA Leaders
- A planned approach to Public Service Reform must be agreed jointly between Local Government and Scottish Government, be flexible and asymmetric recognising the different geographies, demographics and needs across Scotland.
- Consideration should be given to a range of services not currently within the remit of local government that should be brought closer to local democratic accountability, such as public health, transport and further and higher education;
- Council Tax reform must be delivered on – Local Government has been seeking this for over a decade and the analysis published today shows public support for the case for change.
- Social care and social work services must remain within Local Government and not be over-medicalised.
- Communities, staff and trade unions must have a meaningful role in shaping Public Service Reform.
- Public Service Reform must respect the Verity House Agreement, the European Charter on Local Self Government, and local democratic mandates.
- Local government elections in May 2027 should not be affected by Public Service Reform proposals, and the election timeline should be considered in this process.
- The workforce impacts must be carefully considered and addressed, prior to any agreement on change.
- Greater clarity is needed on the financial implications of Public Service Reform.
Scotland’s public services will be strengthened not by imposing structures from the top down, but by working with councils, communities and the workforce to deliver better outcomes for people.
