COUNCIL LEADERS SEEK URGENT MEETING WITH DEPUTY FIRST MINISTER
COSLA has today (Friday) described the Scottish Government’s Draft Budget as a missed opportunity for the communities of Scotland in relation to transforming our economy and meeting climate targets.
The councils’ umbrella body added that Scotland’s Council Leaders, Councillors, the Local Government Workforce and communities should be treated with the respect they deserve demonstrated through investment, not cuts.
A COSLA spokesperson said: “At a special meeting just before Christmas, there was dismay and frustration from Scotland’s Council Leaders about the way Local Government and the communities we represent had been treated in the Scottish Government’s Draft Budget.
“As the Budget currently stands, communities will see and feel a range of negative impacts.
“COSLA’a budget campaign set out the case for fair funding that would allow LG to deliver for the people of Scotland, particularly around Transforming our Economy through a just transition to deliver net zero, one of the 3 shared priorities laid out in the Verity House Agreement.
“The response from the @scotgov to our Budget ask is disappointing and will mean that the potential that councils have to prevent problems occurring will be limited severely.
“The Budget is bad news for the just transition to a net zero economy. We are still analysing the impact across all services but one notable cut is to the regeneration capital grant fund (RCGF) and the vacant and derelict land improvement programme (VDLIP) .
“Overall capital regeneration funding to Local Government has been cut by 27%, from £62.5m to £45.8m. This undermines work to regenerate communities, tackle inequalities and to reduce carbon emissions.
“This means the RCGF, which is jointly managed by Local and Scottish Government, now won’t be open to new bids for 2024-25. Our town centres and communities will be worse off due to this decision.
“On a larger scale, cuts to local government revenue and capital funding are completely the wrong things to do if Government is serious about tackling climate change and its impact on society and the economy.
“Given that 82% of all emissions are within the scope of influence of Local Authorities, plans to deliver on the Scottish Government 2030 statutory target must now be in serious doubt a few weeks after Ministers were talking up Scotland at COP 28.
“COSLA’s President, Vice President and Political Group Leaders from all parties have written to the DFM and are seeking an urgent meeting. Leaders will not let this lie, they simply cannot afford to because it will have such a detrimental impact on the communities they represent.”
A total of £148 million will be invested in community justice services next year to help reduce reoffending so there are fewer victims of crime.
The funding in the draft 2024-25 Budget includes an additional £14 million to encourage wider use of robust community-based interventions where appropriate.
Evidence shows such interventions, including Community Payback Orders and Structure Deferred Sentences, can be more effective than short-term imprisonment at reducing reoffending and assisting with rehabilitation.
The £148 million will be distributed across a range a range of community justice partners, including local authority justice social work services and third-sector organisations.
Justice Secretary Angela Constance said: “Protecting the public and delivering safe communities is my absolute priority.
“This significant investment in community justice will support organisations to work together to ensure that people who have offended address the underlying causes of their behaviour and pay back to the community where appropriate. This aims to encourage rehabilitation, reduce reoffending, and protect the public, leading to fewer victims and safer communities.
“While prison is needed for those who pose a risk to public safety, evidence shows that community-based interventions and sentences can be more effective in reducing reoffending than short-term custodial sentences, while robustly managing risk.
“This funding is part of our overall £3.8 billion Budget investment in justice for 2024-25 which will support policing and other frontline services and help to deliver a safe, secure and resilient country.”
Councils will receive a record £14 billion funding settlement, according to provisional details published by the Scottish Government last night.
Local authorities have each been allocated a share of £13.9 billion to fund their day-to-day activities, including £6 million to support the expansion of free school meals, £242 million for teacher pay rises and more than £266 million for local government pay deals.
Ministers have also made available a further £144 million to enable local authorities to freeze Council Tax rates at their current levels, equivalent to an above-inflation 5% rise in council tax nationally. The Scottish Government is in talks with COSLA over how this will be allocated.
Deputy First Minister and Cabinet Secretary for Finance Shona Robison said: “In the face of a profoundly challenging financial situation, we are making available record funding of over £14 billion to councils – a real-terms increase of 4.3% on the previous year – should they agree to freeze council tax.
“The £144 million for the council tax freeze would be equivalent to an above-inflation 5% rise in council tax nationally.
“We recognise the crucial role councils play in their communities, which is why we have increased their overall share of the Scottish Budget.
“We have made no secret of the tough choices that have been required to balance our Budget, after an Autumn Statement that failed to provide the funding Scotland needs for its public services. While I know councils had sought more funding, the settlement confirmed today represents a fair and sustainable offer.
“We have chosen to invest in our people and public services. This is a Budget that reflects our shared values as a nation and speaks to the kind of Scotland that we want to be with a record settlement for local councils at its heart.”
The Deputy First Minister’s comments are a response to a statement made on Thursday by local authority umbrella body COSLA. Scotland’s council leaders argue that their funding has been CUT.
The Scottish Government has delivered a major blow to communities and has put councils at financial risk with a cash cut to Local Government in its draft Budget (published on 19th December) and no provision for inflation or pay increases, COSLA said.
COSLA Leaders described the draft Budget as not only leaving councils at real and significant financial risk for the coming year, but as it stands, it will mean cuts in every community in Scotland and job losses across Scottish Local Government.
Following a full meeting of Council Leaders on Thursday COSLA said that whatever way the Government presents the figures, the reality is that once again the people in our communities have been left at the end of the queue. That is why we are calling for urgent discussions with Scottish government to ensure a meaningful negotiation on the budget takes place before the final budget is presented to Parliament.
COSLA’s President Councillor Shona Morrison said: “COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.
“The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.
“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax. With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”
COSLA Vice President Steven Heddle said: “Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.
“The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.
“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland.
“As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services. This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives.
“Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”
Delivering the building blocks for Scotland’s future?
More than £5 billion is being invested in building a fair, green and growing economy which creates jobs, supports businesses and helps finance Scotland’s public services and the transition to net zero.
Despite one of the most difficult financial climates since devolution, the Scottish Budget 2024-25 maintains its focus on core priorities and drives forward a government-wide approach to economic transformation.
Measures include allocating £67 million to kickstart a five-year commitment to develop Scotland’s offshore wind supply chain and ensure the country reaps the benefits of the global expansion in wind power. This brings total Scottish public sector support for offshore wind to £87 million next year.
The Budget also boosts annual investment in digital connectivity from £93 million to £140 million in 2024-25, delivering critical infrastructure to enable businesses to innovate and grow while connecting more than 114,000 homes and companies in rural areas to gigabit-capable broadband through the R100 programme.
Since entrepreneurship is at the heart of Scotland’s economic strategy, a further £9 million investment in the Techscalers programme will support the country’s best start-ups with world-class mentoring. The Scottish Government is also prioritising the implementation of Ana Stewart and Mark Logan’s Pathways report, focused on helping more women to start and grow businesses.
The Budget also includes:
putting almost £2.5 billion into public transport to provide viable alternatives to car use, and a further £220 million in active travel to promote walking, wheeling and cycling
providing £358 million to continue accelerating energy efficiency upgrades and installation of clean heating systems
increasing the education and skills budget by £128 million
investing £49 million to promote the re-use of resources and reduce consumption, modernise recycling and decarbonise waste disposal as part of Scotland’s transition to a circular economy
Wellbeing Economy Secretary Neil Gray said: “Our focus is on creating new opportunities for a highly productive, competitive economy, providing thousands of new jobs, embedding innovation and boosting skills.
“We are using all the powers we have to support business and to achieve our ambitious net zero targets. Our strategic investment in offshore wind will stimulate and support private investment in the infrastructure and manufacturing facilities critical to the growth of the sector, and we are delivering a real-terms increase in the education budget to help boost skills and increase productivity. As a priority, we will also consult on options for improving the capacity of local authority planning services.
“Scotland’s finances face a worst-case scenario of underinvestment, which means we must make the difficult choices necessary to focus our limited resources on what will deliver most effectively for people and businesses.
“We’ve seen an Autumn Statement that prioritised a tax cut over investing in public services and infrastructure. The Scottish Government cannot follow this, and has not shied away from taking the tough decisions needed to protect and grow this country’s economy.”
COSLA: Council Tax Freeze is NOT Fully Funded
The Scottish Government has delivered a major blow to communities and has put councils at financial risk with a cash cut to Local Government in its draft Budget (published on 19th December) and no provision for inflation or pay increases, COSLA said.
COSLA Leaders described the draft Budget as not only leaving councils at real and significant financial risk for the coming year, but as it stands, it will mean cuts in every community in Scotland and job losses across Scottish Local Government.
Following a full meeting of Council Leaders yesterday (Thursday) COSLA said that whatever way the Government presents the figures, the reality is that once again the people in our communities have been left at the end of the queue.
That is why we are calling for urgent discussions with Scottish government to ensure a meaningful negotiation on the budget takes place before the final budget is presented to Parliament.
Speaking yesterday afternoon, COSLA’s President Councillor Shona Morrison said: “COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.
“The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.
“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax.
“With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”
COSLA Vice President Steven Heddle said: “Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.
“The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.
“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland. As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services.
“This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives. Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”
The 2024-25 Scottish Budget will set out targeted funding for the Government’s key missions of equality, community and opportunity amid a profoundly challenging financial situation, Deputy First Minister and Finance Secretary Shona Robison has said.
Next week Ms Robison, who is also Finance Secretary, will outline the Scottish Government’s financial priorities for 2024-25, including the difficult choices that have had to be made as a result of last month’s Autumn Statement.
The Deputy First Minister has described that Statement as a “worst case scenario” for Scotland, telling Parliament that it failed to provide the investment needed in services and infrastructure, reflecting the UK’s economic circumstances after Brexit.
Tuesday’s Budget will provide the funding to protect people and public services from the worst effects of these economic circumstances, Ms Robison said.
The Finance Secretary added: “In the face of a deeply challenging financial situation, this Budget will reaffirm our social contract with the people of Scotland.
“The Autumn Statement was devastating for Scottish finances. The Institute for Fiscal Studies has acknowledged that it will lead to planned real terms cuts in public service spending. Scotland is facing a 9.8% cut to our capital budget for infrastructure between this year and 2027-28.
“The £10.8 million additional health consequentials we received from the Autumn Statement for next year are enough to run NHS Scotland for just five hours, and UK Government funding for justice, housing and communities, net zero, energy, and environment are all being cut in real terms. All this comes on top of more than a decade of UK Government underinvestment that has left our public services with very little resilience.
“We refuse to follow UK Government spending decisions – indeed, we are doing all we can to mitigate them. We are proud that Scotland has a social contract which ensures people are protected by a safety net should they fall on hard times. And this contract underpins this Budget, with targeted funding to protect people and public services.
“We are unashamedly targeting resources at those most in need to support them through the cost of living crisis. We are providing funding to deliver the services that people rely on most, along with a ten-year programme of public service reform. And we are using all the powers we have to create a thriving economy while providing funding to achieve our ambitious net zero targets.”
