COSLA: National Insurance Funding Won’t Cover Costs For Councils

£96 MILLION SHORTFALL, warns COSLA

COSLA is clear that the proposed funding from Scottish Government won’t cover additional Employers National Insurance costs, and councils still face an extremely challenging financial position as they set their budgets.

COSLA Resources Spokesperson, Councillor Katie Hagmann, commented: “We note that the Scottish Government has announced it will fund £144m of the additional direct staffing costs that will result from the UK Government’s policy decision rise to Employers National Insurance. However, this leaves  a gap of £96 million Councils will still need to fill within their budgets.

“While we acknowledge that the UK government is still to announce additional resources, it is important to note that there has been no additional funding for commissioned services, the biggest of these being adult social care, which are also vital services and will see significant impacts.

“Given the mounting challenges for local government, this additional funding will not solve the crises councils and communities are facing, which are exacerbated by the Employers National Insurance increase.

“Difficult decisions will still need to be made as councils look to protect essential frontline services.”

City council being ripped off to the tune of £42 MILLION by ‘rotten PFI contracts’

The City of Edinburgh Council is being ripped off to the tune of £42 million as they continue to pay for wretched PFI contracts – eating in to vital council education spending.

Research from the Scottish Parliament Information Centre (SPICe) has found that the amount being forked out by City of Edinburgh Council is 11% of its education resource funding, meaning millions are being wasted on the contracts.

PFI contracts were introduced by the Tories and adopted by Labour during their time at the helm of the Scottish Government.

Gordon Macdonald MSP said: “The rotten PFI contracts were introduced by the Tories but supercharged by the Labour-led Scottish Government and unnecessarily cost councils across Scotland, including Edinburgh.

“It is incredible that the lasting legacy of Labour governments continues to be felt as schools’ budgets are eaten up significantly by these shameful contracts.

“The SNP scrapped PFI contracts, meaning that money can be spent on Scotland’s young people and not on absurdly expensive contracts.

“This demonstrates how we still cannot trust Labour with the public purse in Scotland as we continue to pay for their disastrous decisions in government.”

Net revenue expenditure on education services and schools PFI unitary charges (£m) in 2019/20    
     
 Education Services (£m)PFI unitary charges (£m)PFI unitary charges as a % of education expenditure 
Aberdeen City*174NANA 
Aberdeenshire275135% 
Angus10466% 
Argyll & Bute*99NANA 
City of Edinburgh3794211% 
Clackmannanshire55815% 
Dumfries & Galloway1471510% 
Dundee City136129% 
East Ayrshire128118% 
East Dunbartonshire1281512% 
East Lothian971010% 
East Renfrewshire1201311% 
Falkirk*161138% 
Fife349175% 
Glasgow City5805710% 
Highland2412611% 
Inverclyde802025% 
Midlothian921112% 
Moray85NANA 
Na h-Eileanan Siar42NANA 
North Ayrshire136139% 
North Lanarkshire368247% 
Orkney Islands33NANA 
Perth & Kinross1501711% 
Renfrewshire1671710% 
Scottish Borders11398% 
Shetland Islands43NANA 
South Ayrshire1111110% 
South Lanarkshire3413611% 
Stirling1021515% 
West Dunbartonshire1021212% 
West Lothian189158% 
TOTAL5,3274619%