UNISON: ‘Local government is at the point of collapse’
UNISON City of Edinburgh branch, has raised fears about the further budget cuts being presented to the city’s full council meeting today and condemns both the Scottish and UK governments for the continuing underfunding of Local Government.
Over the past 10 years the council has seen hundreds of millions of pounds slashed from its budget resulting in hundreds of job losses, cuts to services, and the closing of third sector organisations.
“Local government is at the point of collapse and the Scottish and UK Governments have done very little to prevent its demise while at the same time due to COVID-19 has asked it to do more,” said the union’s branch secretary Tom Connolly.
“Providing services from the cradle to the grave, local government and the services it provides impact on all citizens. The continuing underfunding can have a serious impact on the effectiveness of the services being provided.”
UNISON, the biggest union representing workers in Edinburgh council, says that those employed in local government are fire fighting to keep services running, they feel undervalued and the increasing high levels of stress amongst staff is an example of the negative impact on the health and wellbeing of those staff.
UNISON’s Plug the Gap campaign https://www.unison-scotland.org/protect-our-council-services/ has called on the government to bridge the £1 billion funding gap in local Government. COSLA has also called for the action to be taken to bridge the Funding Gap.
“Everyone suffers if Local Government is not provided the funding that it needs to provide meaningful services across our communities,” added Tom Connolly.
“Staff in local government need to be rewarded and paid well for the jobs that they do, there are many low paid workers in local government providing face to face support to or most vulnerable children and adults, in school, care homes etc.
“Other council staff keep our public buildings clean, keep our roads clear, clean our streets and empty our bins, administrative and clerical workers dealing with benefits and other essential administrative tasks, all examples of low paid and undervalued workers who have continued to keep the city running.
“These workers now need to be given the value that they have always deserved and rewarded with decent pay and conditions. Clapping does not pay the bills.”
As the city council’s budget meeting gets underway, some images from budgets past:
Extra money for mental health, education and tackling poverty
Retail, hospitality, leisure and aviation businesses will pay no rates during 2021-22 under proposals outlined yesterday.
It is one of a series of measures proposed by Finance Secretary Kate Forbes following confirmation of a further £1.1 billion of consequential funding arising from UK Government coronavirus (COVID-19) spending.
The move builds on the three month rates relief extension announced in the Scottish Budget and will be taken forward provided the Scottish Government receives the funding already assumed from the UK Budget on 3 March, and that requisite funds are available to maintain existing support into 2021-22.
Newspapers will also continue to benefit from 100% relief for a further 12 months, while charitable rates relief will not be removed from mainstream independent schools until 1 April 2022 due to the ongoing impact of the pandemic.
Other extra spending in 2021-22 arising from the latest consequentials includes:
£120 million for mental health
£120 million for affordable housing
£100 million to support people on low incomes
£60 million for schools to help pupils catch-up on missed education
£60 million for NHS recovery
£45 million for heat decarbonisation, energy efficiency and fuel poverty
£21.5 million for Scottish Enterprise
Separately, local authorities will receive an extra £275 million in the current financial year to address COVID-19 pressures, while a further £40 million is being made available to support the safe reopening of schools.
Ms Forbes said: “When I presented our budget last month I guaranteed to extend non-domestic rates relief further if I was given the necessary resources. I can now deliver on that promise, providing the UK Budget in March delivers the funding we require.
“The other measures I am proposing today, including further support for hospitals, schools and local government and measures to tackle climate change, build on our priorities to ensure a robust recovery for our economy and public services.
“This welcome additional consequential funding was confirmed to us yesterday and I wanted give early notice to parliament and provide clarity to businesses.
“We are still in the throes of a national emergency and it is important Parliament works together to respond. I will continue to work with all parties to help deliver a budget for the nation fit for these times.”
Responding to the Scottish Government’s announcement, CAMRA’s Scotland Director Joe Crawford said: “Extending the business rates holiday for another 12 months is some welcome news for our struggling pubs and gives licensees much needed certainty that they won’t have to find money to pay rates bills this summer.
“But our pubs and clubs will continue to need additional, dedicated financial support in the weeks and months ahead to see them through to the other side of this crisis.
“That’s why CAMRA is urging the Chancellor to use the upcoming Budget to help pubs thrive – by continuing the VAT reduction and extending it to alcohol so traditional locals that don’t serve food can benefit too and keeping furlough as long as trading restrictions are in place – even if that is for longer than it is in England.
“CAMRA also wants to see a lower rate of duty on beer served on tap in pubs and clubs to help encourage people back to their local when they reopen, and level the playing field with supermarkets.”
With yet another round of budget cuts looming, campaign group Another Edinburgh is Possible has published an interim survey which shows widespread dissatisfaction with council service provision across the city.
The group, made up of trade union and community activists, invited Edinburgh residents to share their views on council performance – and the results will make uncomfortable reading for the administration’s leaders.
Public conveniences, poor road and pavement maintenenance, housing and homelessness services came in for particular criticism and the controversial Spaces for People initiative also attracted adverse comments.
There was criticism, too, for Edinburgh’s health and social care, while community education, social work and the city’s community centres also ranked poorly.
Despite years of cuts to council services – £320 million since 2012/13 – the City of Edinburgh Council is looking to make further ‘savings’ in the new financial year. £80 million has already been identified but the council has still to find an additional £5.1 million.
Looking further ahead, the picture remains bleak. The city council has plans to make savings of £40 million overthe next three years – but it will also have to find a further £47.5 million.
Campaigners say cuts of this magnitude are unsustainable, and Another Edinburgh is Possible organisers are now urging citizens to contact their elected representatives ahead of tomorrow’s crucial budget meeting.
Another Edinburgh is Possible is one of six delegations to Thursday’s full council meeting, which starts at 10am.
Improved communications with Edinburgh’s residents
A re-ordering of council priorities
The integration of Edinburgh’s transport system under public ownership
Edinburgh is currently run by an SNP – Labour ‘Capital Coalition’ although the Conservatives are now the biggest group on the council with 17 councillors.
The council says: “We deliver a vast range of services – more than 700! – to people who live and work in Edinburgh. This year alone, we will spend more than £1 billion on services and investing in our priorities.
“We’ve committed to ending poverty and becoming a net zero carbon city by 2030, while improving the wellbeing of our whole city. Now, more than ever, we must hold on to these commitments.”
Labour councillor Cammy Day is deputy leader of the city council. He lays the blame for continued cuts on the SNP – despite the Nationalists being Labour’s partners in Edinburgh’s Capital Coalition.
He said on FaceBook: “Despite over a decade of SNP cuts to Edinburgh Council – we will deliver a budget helping people who experience poverty, challenge issues around sustainability, reduce fee increases in key areas and, in thanking our communities, we will make investments to upgrade the city’s parks and greenspaces which have been a space for enjoyment during a challenging year for us all.
“Edinburgh Labour have also ensured substantial investments in providing proper digital inclusion for all of our school pupils across the city. All of the SNP government funding required has been allocated to our Health and Social Care work, and it is woefully short.
“Edinburgh Labour will continue to press the SNP Government for full funding to support the most vulnerable in our city, and prioritise any additional funding to support this.please get in touch and show your support – we need everyone to push the SNP government to fairly fund our capital city.”
Local government elections are scheduled to take place in May.
There’s still time to have your say – you can complete the Alternative Survey of Council Services up until 21 February:
‘We are putting tackling poverty at the heart of the Budget’ – Social Security Secretary Shirley-Anne Somerville
Tackling deep-seated poverty and inequality will be supported by increased funding from the 2021-22 Scottish Budget.
To ensure all children have the best start in life, £68 million will be invested in the Scottish Child Payment, and £53 million will fund universal Free School Meals to all children in primary one, two and three.
Communities impacted by the coronavirus (COVID-19) pandemic will continue to be supported through funds aimed at helping them recover and rebuild.
The 2021-22 Scottish Budget includes:
a near doubling of spending through the Tackling Child Poverty fund with £23.3 million of investment, and providing £6 million to local authorities to continue providing a school clothing grant worth at least £100 to every eligible child
£3.6 billion for social security to carers and those on low incomes
£150 million for fuel poverty and energy efficiency measures
£711.6 million for affordable housing and a new £55 million programme to support town centres
£32 million to promote equality and human rights, including actions to ensure this approach is embedded across government and the wider public sector
£15 million to further support children and young people with Additional Support Needs
more than £26 million of investment in the vital Third Sector
£81.6 million for projects to support community regeneration, town centres and 20 minute neighbourhoods – where people can meet their needs within a 20 minute walk from their home
over £12 million to support the Ending Homelessness Together action plan, including specific actions to scale up Housing First, end the use of communal night shelters, advance legislative protections for people experiencing domestic abuse and explore alternative routes to reduce migrant homelessness
Social Security Secretary Shirley-Anne Somerville said: “We are putting tackling poverty at the heart of the Budget. In two weeks we introduce our new game-changing Scottish Child Payment, backed by investment of £68 million.
“As well as mitigating the impact of UK Government welfare cuts, we are supporting carers, young people, and low income families through our range of new benefits. This year also sees the start of the introduction of the first disability benefits as we continue to establish a social security system that is based on dignity and respect and investing in our people.”
Communities Secretary Aileen Campbell (above) said: “In addition to responding to the impacts of the coronavirus pandemic, this budget is investing in actions designed to tackle deep-seated poverty and inequality including almost doubling our child poverty budget to £23.3 million.
“This means we will deliver our £50 million Tackling Child Poverty Fund commitment in full, continuing with investment in actions including our Parental Employability Support Fund, Access to Childcare Fund and innovative Children’s Neighbourhoods Scotland programme.
“Funding for more affordable, greener housing is at the heart of the Scottish Budget, contributing to our net-zero ambitions while helping to ensure everyone has a home that meets their needs.
“We will also invest over £26 million in the local and national Third Sector infrastructure, support the capacity and growth of social enterprises, and ensure the Third Sector can help people and communities recover from the impact of the pandemic.”
Details of how £11.6 billion of funding from the Scottish Government will be distributed to individual local authorities in 2021-22 have been published.
The settlement provides councils with an increase in day to day revenue spending of £335.6 million, including £90 million to compensate local authorities which choose to freeze council tax and a further £259 million will be added in one-off funding to support ongoing COVID-19 pressures.
In total, councils will receive additional revenue funding of almost £600 million to support vital local government services in 2021-22.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Finance Secretary Kate Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core.
“The local government settlement will help to fund those vital public services that are much valued and needed.
“It includes additional funding of £59 million to complete the expansion of early learning and childcare to 1,140 hours a year, £72.6 million for investment in health and social care and £7.7 million to support the inter-island ferries in Shetland, Orkney and Argyll and Bute.
“Just as we have chosen not to increase tax rates, ensuring people pay no more than last year, I have taken the significant step of offering funding equivalent to a council tax increase of around 3% to councils who choose to freeze council tax. I look to local government to join with me in providing the much needed financial reassurance to those who are struggling.
“We need to focus on how we rebuild and renew our country, and the funding I am providing to local authorities reflects the key role that they will continue to play in that journey.”
LOCAL GOVERNMENT FINANCE 2021-22: TOTAL REVENUE SUPPORT
Local Authority
2020-21
2021-22
Change
Change.
£m
£m
£m
%
Aberdeen City
364.6
376.0
11.4
3.1
Aberdeenshire
460.2
479.2
19.0
4.1
Angus
220.2
226.9
6.7
3.1
Argyll & Bute
208.8
213.3
4.6
2.2
Clackmannanshire
103.0
105.7
2.7
2.6
Dumfries & Galloway
306.8
314.6
7.9
2.6
Dundee City
320.1
327.7
7.7
2.4
East Ayrshire
249.9
256.9
7.0
2.8
East Dunbartonshire
202.1
208.0
5.9
2.9
East Lothian
189.2
194.7
5.5
2.9
East Renfrewshire
191.3
196.1
4.8
2.5
Edinburgh, City of
799.6
831.9
32.3
4.0
Eilean Siar
99.8
101.6
1.8
1.8
Falkirk
308.2
315.7
7.5
2.4
Fife
702.4
725.3
22.9
3.3
Glasgow City
1,333.1
1,362.9
29.8
2.2
Highland
493.0
506.3
13.3
2.7
Inverclyde
177.6
181.9
4.3
2.4
Midlothian
178.9
183.7
4.8
2.7
Moray
173.6
180.2
6.6
3.8
North Ayrshire
296.7
303.9
7.2
2.4
North Lanarkshire
673.1
691.2
18.1
2.7
Orkney Islands
78.2
82.7
4.5
5.7
Perth & Kinross
271.0
281.3
10.3
3.8
Renfrewshire
341.9
351.2
9.3
2.7
Scottish Borders
224.0
233.2
9.2
4.1
Shetland Islands
90.0
97.3
7.3
8.1
South Ayrshire
217.4
223.7
6.3
2.9
South Lanarkshire
610.4
625.8
15.5
2.5
Stirling
183.5
188.7
5.2
2.9
West Dunbartonshire
203.0
207.4
4.4
2.2
West Lothian
344.5
353.3
8.8
2.6
Undistributed
51.9
75.1
23.2
44.8
SCOTLAND
10,667.8
11,003.4
335.6
3.1
Speaking after last week’s Budget announcement, COSLA’s Resources Spokesperson, Councillor Gail Macgregor, said: “Given the context this year, perhaps it is not overly surprising that the Budget is very much a mixed bag for Local Government –the main issue is that the overall allocation adds very little into our core financial settlement which has been eroded over the years.
“The Cabinet Secretary, in her speech, recognised Councils’ role as deliverers of vital services and yes on the face of it there is more money but that is predominantly for Government priorities.
“The addition of £259 million flexible funding for 2021/22 will help councils address Covid related costs next year, including providing the support that the most vulnerable in our communities will require but we need solid assurances that if this figure falls short, as is expected, that further funding will be forthcoming.
“To deal with pressures this year, the announcement of an additional £110 million to help compensate Councils for loss of income, which when added to the money we have already had, makes £200 million, is to be welcomed.
“However, for many councils this won’t be enough – income loss will leave a very large hole in their finances for years to come. We welcome that the Cabinet Secretary for Finance has listened to Leaders requests for further funding to cover loss of income but there is still work to do where there is a shortfall.
“We welcome elements of today’s announcement but overall this budget falls short of what we would consider a fair settlement for Local Government. We would anticipate further constructive discussions with the Cabinet Secretary in the next few weeks.”
Significant new investment to drive economic recovery, bolster public services and support families underpins the Scottish Government’s spending and taxation plans for the coming year.
Presenting the Scottish Budget 2021-22 yesterday, Finance Secretary Kate Forbes announced support for jobs and skills totalling around £1.1 billion.
Job creation is a priority, with measures including a commitment to launch a new Green Workforce Academy to help people secure work in the low carbon economy, a £100 million Green Jobs Fund over the next parliament, £7 million towards making Scotland a world class hub for digital business and an additional £125 million for the Young Person’s Guarantee, employability and skills.
Health receives record funding of over £16 billion, an increase of 5.3% on 2020-21, along with a further £869 million to continue tackling coronavirus (COVID-19), including funding for the vaccination and test and trace programmes. This means that, over the course of this parliament, investment in health has increased by £1.8 billion in real terms – more than tripling the commitment to increase health funding by £500 million more than inflation.
To support family budgets, £90 million is being made available for local authorities to freeze council tax.
Public sector workers earning up to £25,000 can receive at least a 3% pay increase via a £750 cash underpin, while there is a 1% rise for those earning above that amount, capped at £800 above £80,000.
Economic recovery, supporting public services and helping families are at the heart of this year’s Scottish Budget.
£11.6 billion for local government, which represents a £335.6 million increase in core revenue funding, including the £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding
£1.9 billion for primary health care to help deliver more services in the community. A further £550 million is earmarked to build new Elective Care Centres and the Baird Family Hospital and Anchor Centre in Aberdeen
£98.2 million to improve Scotland’s digital infrastructure and deliver access to high quality broadband and mobile coverage.
£711.6 million for affordable housing and £68 million for the first full year of the Scottish Child Payment, tackling child poverty
a new £55 million programme to support town centres and community-led regeneration projects
more than £3.1 billion in resource and capital investment for education and skills, and £567 million to provide 1,140 hours of early learning and childcare, supporting implementation of the UK’s most ambitious childcare programme
£1.3 billion for the Scottish Police Authority, including a £60 million increase in Police Scotland’s revenue budget – exceeding an earlier pledge of a £100 million boost over five years
£1.6 billion for rail and bus services and £100.5 million for active travel to consolidate changes to healthy, green travel options seen during the pandemic
doubling the Rural Tourism Infrastructure Fund, helping tourist attractions and local communities make improvements to cope with increased visitors
an additional £27 million to expand woodland creation and the associated infrastructure, supporting green jobs
Business support remains a priority and the Finance Secretary confirmed that the Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Ms Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core, and as we face the harmful impacts of Brexit.
“It promotes innovation and reform, new beginnings, new directions. And while it continues to target support in the immediate term, it also tracks a course over the next year to build a fairer, stronger and greener country.
“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK. There are innovative measures to promote sustainable growth and we are investing more than £1 billion in jobs and training.
“The budget sets out a distinctive Scottish pay policy that again supports the lowest paid, charting a different course to the ill-judged pay freeze announced by the UK Government. It also bolsters our health service, delivers more affordable homes, provides additional childcare places and helps young people into work.
“Throughout these dark times we have never given up hope. This budget seeks to build on that hope and, by focusing on how we rebuild and renew our country, make the light at the end of the tunnel shine that bit brighter.”
Our budget helps to deliver stability now, but it also looks forward to the future.
Watch Finance Secretary @KateForbesMSP explain our priorities for the coming year ⬇
The STUC has expressed its disappointment at what effectively amounts to a real-terms pay freeze for thousands of public sector workers as the Budget offers 1% for those earning pay above £25,000 per year including most teaching staff, firefighter and civil servants.
The STUC General Secretary, Roz Foyer pointed to the real terms increase in the Scottish Budget of nearly 4% and contrasted that with today’s pay offer.
“Whilst it is right and proper that the pay of low paid workers should be underpinned, for most workers this increase is still below the budget uplift received by Holyrood from Westminster. Far too many of our key workers have been left out in the cold.
While supporting Scottish Government calls for greater borrowing powers, Foyer also questioned whether tax cuts for high earners were the right priority and whether funding for Local Government was sufficient.
“We strongly support the Scottish Government’s calls for greater borrowing powers. However, the Cabinet Secretary has managed to find wiggle room to provide £125 million in blanket tax cuts. She has also reduced income taxes for high earners – a policy that raised £51 million last year. Given this, it is deeply disappointing that she hasn’t been able to better reward key workers.
“While the Cabinet Secretary spoke about an increase in funding for Local Government, it appears this amounts to less than a 1% increase, a level that is nowhere near sufficient to cover gaping cuts to services from years of austerity.”
Responding to the Budget announcement, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:“The position of Scottish businesses has never been so precarious. The Scottish Government’s announcements today are welcome but do not go nearly as far enough to avoid risk of widespread business collapse and job losses.
“Yes, there is light at the end of the tunnel with the vaccination programme but restrictions to prevent the spread of the virus have been devastating. We understand that the Cabinet Secretary for Finance faces difficult choices in setting the budget particularly ahead of that of the UK, in a time when the country faces extraordinary challenges.
“Business will be disappointed that further details on an economic route map on how we will exit this crisis aligned with the roll out of the vaccine were not provided today. This is a critical component if businesses are to unleash the investment our country so desperately needs.”
On Non-Domestic Rates:
“The Cabinet Secretary has listened to us and has delivered a reduction in the Non-Domestic Rate (NDR) poundage rate. However, longer-term, we believe the system is unfair and needs significant reform.
“Plans for a three months extension of rates relief is a too short a reprieve. We need commitment to a 12-month reliefs package to provide the certainty business needs. Clearly there is more to do, and we await further announcements from the Chancellor to see what further support can be made available and expect Scottish Government to pass on the equivalent consequential funding to businesses.”
On Business Support:
“The doubling of the discretionary fund is good news particularly for those businesses who have fallen through the gaps of other support packages. However, it is imperative that the process for businesses is clear, transparent and quick across all local authorities to ensure funding is available for businesses quickly and immediately.
“Now is the time to pull out the stops and redouble efforts to ensure business support comes through. We need to see a significant ramping up to get those funds that have been promised out the door and to businesses.”
On Infrastructure:
“The Scottish Government’s commitment to infrastructure investment is absolutely necessary for Scotland and the UK to be in a position to build back better and meet net zero ambitions. Now is the time for a vision driven by ambition and a willingness to collaborate like never before. This must be put first and foremost ahead of any political point scoring this year.”
On skills and training:
“SCC welcomes these important steps to support jobs, employment and training. We called for training academies and we are pleased to see the Cabinet Secretary has acted on our recommendations, particularly the focus on green jobs. It is now critical that the government and academia works in partnership with the private sector to ensure benefits are fully realised.”
On Protecting Jobs:
“We maintain our call to the Chancellor of the Exchequer to extend the furlough scheme beyond April 2021 and outline further initiatives to protect business and jobs at the UK Budget in March.”
On mental health support:
“Business will welcome this as we understand the toll the pandemic has taken on our customers, employees and communities.
“Recovery of our wellbeing is just as important as economic recovery, with many employers investing in their own employee support programmes. This commitment from the Scottish Government will enhance these efforts.”
Responding to Kate Forbes’ announcement that public sector workers on salaries up to £25,000 a year will receive a 3 per cent increase, GMB Scotland Senior Organiser Drew Duffy said: “This will be met with fury among the lowest paid in Scotland’s public sector.
“Kate Forbes was among the many politicians applauding our frontline heroes, now she is saying ‘thank you’ with a rise that won’t amount to more than a tenner a week for most.
“There is no value here, and it’s an insulting response from the Scottish Government to the ongoing struggles of our key workers in this pandemic.”
Tracy Black, CBI Scotland Director, said:“The Finance Secretary is right to put business support and economic recovery front and centre of this year’s draft Budget. With jobs, firms and livelihoods still hanging by a thread, Scotland can’t afford to wait until the pandemic is over before initiating plans for a sustained recovery.
“Health must come first and lowering transmission rates remains the priority. Yet with so many struggling companies across Scotland, it’s only right that proper consideration is given to reopening the economy when it is safe to do so. This should be driven by data and done in dialogue with business.
“The private sector is critical to a successful recovery and moves to protect firms’ immediate futures are welcome. Continuing rates reliefs for the hard-hit hospitality, retail and tourism sectors is welcome, however a three-month window remains a challenging timetable for firms under real pressure. Companies will also be relieved to see a continued commitment to Covid business support and no further changes on income tax.
“The UK and Scottish governments must now work together to provide certainty over business support, ensuring that the firms we need to drive economic recovery survive the tough weeks and months ahead.
“Longer term, the figures from the Scottish Fiscal Commission paint a worrying picture and highlight the scale of the challenge ahead. Maintaining a laser focus on boosting productivity and protecting competitiveness are key.”
Responding to the Scottish Government’s Budget statement delivered today by Finance Secretary Kate Forbes MSP, Director of CAMRA Scotland Joe Crawford said: “Extending the business rates holiday for pubs and social clubs for a further three months into the next financial year is a desperately-needed lifeline for pubs who have struggled for almost a year now.
“But three months won’t be enough. CAMRA will be joining the Scottish Government in calling on the Chancellor to use his Budget on 3rd March to give the Scottish Government enough money to extend this Business Rates holiday for the entire 2021/22 financial year.
“Pub-goers and licensees will now want to see the Scottish and UK Governments work together to make sure pubs and breweries get enough long-term financial support to thrive when they can reopen. This must include grants, furlough support as long as there are restrictions on trading, extending the VAT cut on beer to help pubs that don’t serve food, and cutting tax on beer served in pubs to help them compete with supermarket booze.
“Pubs and social clubs are a force for good in our communities, bringing people together and tackling loneliness and social isolation. They will be a crucial part of our national healing process after COVID and deserve to be supported until they can trade again.”
SLTA Managing Director, Colin Wilkinson said:“The Scottish Licensed Trade Association welcomes today’s announcement by Finance Secretary Kate Forbes that the Scottish Government will extend 100% non-domestic rates relief for retail, hospitality and leisure for at least the first three months of the new financial year. However, it doesn’t go far enough.
“Today’s announcement is good news, as is the promise of further ongoing business support and it gives us a much-needed stay of execution. The reduction in the poundage rate, from 49.8 pence to 49 pence, is also very welcomed.
“Further support from the Westminster Government is crucial and our hope is that UK Chancellor, Rishi Sunak, steps up to the mark by extending the current furlough scheme, committing to retain the Commercial Rates Relief and the temporary 5% reduced rate of VAT for hospitality beyond March 31 and well in to 2022.
“Our sector is battered and bruised and the sooner both the Scottish and UK Governments can provide clarity on support and an indication of an exit strategy out of this pandemic the better.”
Chief Constable Iain Livingstone has welcomed the Scottish Government’s Budget announcement.
Mr Livingstone said: “I welcome the announcement to eliminate the structural deficit in policing’s funding.
“The reform of policing in Scotland has brought many benefits to all communities across the country, while £200m has been returned to the public purse every year compared to legacy arrangements.
“The last 12 months have demonstrated the relentless nature of policing. Our mission to prevent harm, support communities and keep people safe has been evident throughout the pandemic.
“We will continue to enhance capacity and capability to protect the people of Scotland in the public, private and virtual spaces.
“Responsive and accessible local policing is deeply valued by our fellow citizens and will always lie at the heart of Police Scotland’s purpose and approach.”
The report was published yesterday, a day ahead of today’s planned announcement by the Scottish Government of the 2021/22 Local Government Financial Settlement.
Financial flexibilities already agreed with the Scottish Government have contributed to the balanced budget position for 2021/22, with an acknowledgement that more fundamental service reform, improvement and prioritisation will be required in future years.
At their meeting on 2 February the Finance and Resources Committee will also consider the Council’s new three-year Business Plan, titled ‘Our Future Council, Our Future City‘, which brings together the Council’s strategic priorities in a single plan responding to the need for change and seeks to shape a fair and green post-pandemic recovery for the Capital over the years ahead.
The Business Plan aims to deliver a sustainable, fair and thriving future for Edinburgh, responding directly to the aspirations tens of thousands of residents have shared for their home city as part of the 2050 Edinburgh City Vision process and guided by the Council’s three key priorities of tackling poverty and inequality, boosting sustainability and enhancing wellbeing.
As well as reporting a balanced budget position for 2021/22, the Revenue Budget report sets out a budget framework for the following four years.
During this time, due to a combination of rising demand, inflationary pressures, legislative reform and a level of funding that is not expected to keep pace, the Council will be required to save more than £100m whilst maintaining an appropriate level of reserves.
Difficult decisions on where to prioritise investment will therefore be unavoidable.
Finance and Resources Convener Councillor Rob Munn said: “Like all Scottish local authorities, we find ourselves in a difficult situation, both in terms of how long Covid restrictions will be in place and what further pressures the pandemic will place on our budgets in the months to come. We’ve already faced budget pressures of around £85m through increased expenditure and lost income.
“That’s why it’s entirely pragmatic to set a balanced one-year budget for the next financial year while preparing for broader reforms from 2022 onwards.
“Our recent Best Value audit by the Accounts Commission found that we’re managing our finances well but recommended that we set out longer-term financial plans and that we pull together our ambitious strategies into a single plan.
“Both the Business Plan and the five-year budget framework we’re proposing respond directly to this recommendation and, taken together, they will help us reprioritise and, where required, redesign services to address budget gaps and progress our core priorities over the coming years.”
Vice Convener Councillor Joan Griffiths said: “In setting out a balanced budget position for 2021/22, I am particularly pleased to note that, through careful financial management, we’re able to sustain vital frontline services; the services our communities have so depended upon during the incredibly difficult and challenging situation we’ve all faced since the pandemic began.
“We remain fully committed to our established priorities of tackling poverty and inequality, boosting sustainability and promoting wellbeing – all of which were set based on direct public feedback on what is most important to the people of Edinburgh.
There’s no doubt some very challenging times lie ahead but we’re determined to maintain our focus on investing in attractive, safe and sustainable places to live, building thousands more affordable homes and high-quality modern schools and early years settings to give our children the best possible start in life. The residents of Edinburgh deserve nothing less.”
The Business Plan sets out three core priorities for the city:
(i) ending poverty and preventing adverse outcomes such as homelessness and unemployment; (ii) becoming a net-zero city; and (iii) ensuring wellbeing and equalities are enhanced for all.
These will be aligned with the priorities set out in the Edinburgh Partnership Community Plan which were developed based on feedback from communities.
The priorities, shared by all members of the Edinburgh Partnership, are to ensure all citizens have:
Enough money to live on
Access to work, learning and training
A good place to live.
An update to the budget proposals will be reported to councillors once the implications for Edinburgh of the Scottish Government’s LGFS are known.
A coalition of leading independent and third sector children and young people’s service providers has called on the Scottish Government to deliver a “budget for mental health” this afternoon.
The call from campaign group, the Scottish Children’s Services Coalition (SCSC), comes in advance of today’s Scottish Budget and Children’s Mental Health Week (1st-7th February). It comes amid growing concerns over a potential lost generation of vulnerable children and young people, whose mental health is being impacted by the pandemic.
The SCSC has urged greatly increased investment in services for children and young people to tackle a current mental health pandemic and called for a national crusade to address this.
COVID-19 has had a devastating impact on young people’s mental health and wellbeing, with the recent Prince’s Trust long-running annual survey of young people’s happiness and confidence returned the worst findings in its 12-year history. It found that more than a quarter (26 per cent) say that they feel unable to cope with life since the start of the pandemic.
In addition, half of the young people interviewed said that their mental health has worsened, with more than half (56 per cent) said they always or often felt anxious. 1
Even prior to the pandemic cases of poor mental health were at unprecedented levels, representing one of the greatest health challenges of our time, and there is a growing number of vulnerable children who cannot access services. With a new lockdown and a return to home schooling, even some children who would not have accessed children’s mental health services normally will need support this year.
However, just over 50p in every £100 of the NHS budget is being spent on specialist child and adolescent mental health services (CAMHS). A frighteningly low figure despite the fact that mental health services are literally creaking at the seams due to greatly increasing demand.
Research indicates that 10 per cent of children and young people (aged five to 16) has a clinically diagnosable mental health problem (around three in every classroom) – however, it should be noted that these figures are some years out of date and it is widely believed that numbers have increased and will increase further given the impacts of COVID-19.
Recent statistics however point to the fact that only one health board in Scotland is treating children and young people within an 18-week waiting time and more than 1,000 have been waiting over a year to be treated.
The SCSC has also called for greatly increased investment in services and for a renewed focus on prevention and early intervention. This includes on-demand counselling services in GP surgeries and greater community support generally, reducing the need for referral to under-pressure specialist CAMHS.
A spokesperson for the SCSC said: “Our children are remarkably resilient, but the statistics on the mental health of our young people does create a compelling case for a national crusade to address what is a mental health pandemic representing one of the greatest public health challenges of our time.
“We are urging the Scottish Government to make the forthcoming budget a budget for mental health for our children and young people. Unless the government takes urgent action to improve access to services, this young generation will be destined for a future of mental ill health, with a resultant societal impact.
“There must be significantly increased investment in and greater collaboration between the public, private and third sectors to deliver adequate mental health support. We must also use this as an opportunity to radically transform our mental health services, both for now and for the future, refocusing on prevention and early intervention.
“This mental health crisis is one we can address, but it will require a similar energy, drive and commitment to that which was demonstrated for COVID-19 if we are to achieve this and prevent this generation of young people giving up on their futures – and themselves.”
Measures promoting recovery and renewal will be at the heart of the Scottish Budget tomorrow.
New initiatives to drive economic growth, create jobs and tackle inequality will be included alongside further support for business, public services and families.
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Finance Secretary Kate Forbes said: “The budget on Thursday will create the conditions for Scotland to recover and renew.
“We remain in the grip of a pandemic which continues to put pressure on our economy, health services and each of us as individuals. But the vaccine is providing a route back to normality and we must now sharpen our focus on rebuilding for the future.
“The budget will include innovative, targeted measures to help businesses and families get back on their feet and bolster our vital public services. I have already ruled out following the UK Government’s public sector pay freeze and will set out details of a pay settlement that is both fair and affordable.
“It is vital that we rebuild our economy in a way that provides equal opportunities for all, delivers on our green commitments and creates the kind of Scotland we all want to see.”
“This process has already started. For instance we have established a National Transition Training Fund providing targeted support for up to 10,000 people, set out our £60 million Young Person’s Guarantee and committed £2 billion in low carbon funding. The budget will set out how we intend to further these ambitions.
“Ahead of the budget we sought views on the role of Scotland’s devolved taxes and our fiscal framework in supporting the recovery. There was clear feedback regarding the need for stability and targeted support and that has also been a particularly strong message in my meetings with businesses and their representative organisations. The budget will deliver on those priorities
“Despite the UK Government’s budget being delayed until March, and the uncertainty that causes, the Scottish Budget 2021-22 will confirm funding allocations for local government. It will also detail how, within our limited resources, we will go as far as we can to support businesses in receipt of non-domestic rates relief.
“The global pandemic and the problems arising from Brexit combine to make these uniquely challenging times. This budget will help Scotland emerge as a globally competitive, fairer and greener country and I urge all parties to work in the national interest to ensure it is passed by the Scottish Parliament.”
Local councils have seen greater reductions in funding over the last seven years than other areas of the Scottish Government budget.
Funding received by councils from the Scottish Government increased by £500 million in 2019/20, but Covid-19 will drive large rises in costs and spending, combined with falling income.
An overview of local government finances in Scotland, published today by the Accounts Commission, reports that councils received higher revenue and capital funding than in previous years and many were able to increase their financial reserves. However much of the additional funding councils received from the Scottish Government must be used for specific purposes, including over £200 million for expanding early learning and childcare. And capital finance funding will drop by 30 per cent in 2020/21.
Looking ahead, Scotland’s councils face significant additional pressures due to Covid-19. This includes substantial and ongoing reductions in income, increased costs and the administration of business support grants and other measures of support to their communities during Covid-19.
The Commission has also repeated its serious concerns about the financial stability and leadership of Integration Joint Boards (IJBs), the bodies set-up to manage local health and social care services. Most IJBs couldn’t deliver services within their budgets and needed extra money from health boards and councils. There were also changes of chief officer in 12 IJBs, and this leadership instability makes it harder to manage both finances and the major changes needed in health and social care.
Elma Murray, Interim Chair of the Accounts Commission, said: “Councils and Integration Joint Boards play a vital role in supporting Scotland’s communities. Even before Covid-19 the pressures and demands on council services had intensified. At the same time reductions in local government funding over the past seven years have been greater than in other areas of the Scottish Government budget.
“Covid-19 has fundamentally affected local government services, increasing their reliance on working with their partners and communities. The financial impact of the pandemic on our public services is extreme and creates increased uncertainty of how those services will be provided in the future.
“Good governance, strong financial management and transparency of decision making will be critical as councils and IJBs deal with the impact and consequences of the pandemic.
Councils have seen greater reductions in funding over the last seven years than other areas of the Scottish Government budget a report from the Accounts Commission states today (Tuesday).
The report also highlights that Scotland’s councils face significant additional pressures due to Covid-19. This includes substantial and ongoing reductions in income, increased costs and the administration of business support grants and other measures of support to their communities during Covid-19.
Commenting on the report today and ahead of the Scottish Government’s Budget on Thursday, COSLA’s Resources Spokesperson Councillor Gail Macgregor said: The messages in today’s Accounts Commission report paint a full picture – on the face of it, there looked to be increases in Local Government funding in 19/20 but much of this was for Scottish Government’s OWN commitments, and came after years of reductions.
“These messages should be listened to AND ACTED UPON as they come from an independent, well respected non Local Government body.
“This report lays out why we need fair funding for Local Government in Thursday’s Budget. The trend of recent settlements for Local Government needs to change because on top of existing pressures, the COVID pandemic – as the Accounts Commission report recognises – has placed unprecedented strain on the finances of Scotland’s Councils this year.
“This year, across every community in Scotland, Local Government’s essential role has been magnified and once again we have delivered for our communities.
“Nobody in Scotland has been unaffected by this pandemic and the financial impacts of COVID-19 are severe. Individuals, families and businesses have all felt the effects and continue to look to Councils for support every day.
“Sustaining this lifeline support is placing extreme pressure on already strained budgets and without fair funding for Local Government this year, the consequences for the most vulnerable in our communities would be unacceptable.
“That is why we need fair funding for 2021/22 that respects our communities. Without this, there will be further cuts to services, reductions in spending locally, increases in the inequalities exposed by the pandemic and a much slower recovery.”
