Scotland’s Council Leaders have written to the First Minister expressing their collective deep concern about the impacts of the financial settlement that Scottish Government has proposed for Local Government as part of this year’s Scottish Budget.
At a special meeting of Leaders on Monday 16th December, it was unanimously agreed that the budget settlement as it stands means another real terms cut to Councils’ core funding, at a time when many in our communities are struggling with the impact of rocketing prices across fuel, food and other bills, and facing unprecedented levels of poverty in a modern era, in an era where Local Government continues to provide the targeted and ongoing support deemed so vital to those most in need.
Council Leaders feel that this budget settlement will have a detrimental impact on vital local services, on our ability to focus the necessary resources and supports to our communities and on those who are already impacted by this cost-of-living crisis.
Leaders added that significantly, it will lead to the loss of jobs, both within Local Authorities and within the local companies who supply goods and services to councils and are reliant on their contracts to employ local people.
In the letter Leaders did acknowledge the impact of inflation, the UK Government’s mini-budget and global economic factors that are continuing to weigh heavily on the Scottish Government’s budgets and spending plans.
Given the pressures facing Councils, Leaders are keen this year to meet with Ministers so they can hear concerns first-hand, look at possible solutions and to work collaboratively with Government to enable Local Government to continue to deliver vital services to our communities.
Regeneration projects in disadvantaged and rural communities across Scotland will receive a share of almost £27 million funding.
The investment will support schemes tackling child poverty and addressing issues like addiction and suicide prevention, while creating jobs and growing local economies. It supports town centre regeneration by bringing derelict buildings back into use and creating new buildings for the community or for commercial purposes.
The latest round of funding from the Regeneration Capital Grant Fund (RCGF), delivered in partnership with COSLA and local authorities, will help 23 community-based initiatives which will create and support more than 700 jobs and more than 500 construction jobs, along with hundreds of training places.
Edinburgh’s Peffer Place Business Park in Craigmillar receives £2.25 million.
Other initiatives include:
converting a derelict Motherwell sports pitch into a recreation area and community base to support groups at particular risk of suicide
transforming a former pipe factory in Glasgow into a community centre and creative hub for young people, including those with care experience
renovating an empty, derelict building in Lossiemouth into a community hub providing services including affordable childcare, addiction counselling and debt advice
establishing a five-acre campus in Easter Ross to offer training in sustainable food production, promote zero waste and deliver courses focused on tackling food poverty and poor mental health
Community Wealth Minister Tom Arthur said: “These innovative, grassroots schemes have been developed within communities to address local needs.
“Scottish Government support will help provide services like employment training, affordable childcare, mental health support and addiction counselling. Derelict landmarks will be redeveloped and new buildings created.
“By working in partnership with residents and local authorities, we are helping communities to support themselves and develop fair, green and prosperous economies which accelerate progress towards net zero emissions.
“The Scottish Government wants to create a fairer society by enabling more people to benefit directly from the wealth generated by local communities. That is why we are introducing Community Wealth Building legislation during this Parliamentary term – to fundamentally transform what our economy is for and how it operates.”
COSLA’s Environment and Economy spokesperson Councillor Gail Macgregor said: “The announcement today shows the strength of the RCGF and the commitment by local government to regenerating communities.
“In this uncertain time of inflation, rising energy costs and increased demand on services, the fund demonstrates what can be achieved in our towns, cities, villages and islands when support is focused on social and economic renewal.
“From tackling the mental health crisis to food poverty, affordable childcare to climate change, this fund goes beyond what we traditionally think of as regeneration thanks to the ambition and innovative thinking of communities across Scotland.”
Since 2014-15, the RCGF has funded more than 200 projects which have supported or generated thousands of jobs, repurposed and returned to use landmark buildings in town centres, and created numerous new commercial spaces and multi-use community facilities.
RCGF funding applications are invited annually from all 32 local authorities and Clyde Gateway Urban Regeneration Company, as part of a two-stage process.
An independent Investment Panel agrees recommendations to Ministers and COSLA on projects to be funded during the forthcoming financial year. Applicants must detail how projects will help meet net zero ambitions and reduce carbon emissions.
The Scottish Government plans to introduce Community Wealth Building legislation during this Parliamentary term to accelerate progress on transforming local economies and fundamentally reshaping how communities operate.
Local Government spending decisions are being increasingly directed by Scottish Government, and the way Local Government finances are presented by Scottish Government is potentially confusing for the general public.
This can lead to raised expectations and lack of clarity in our communities about the reality of what is now possible to deliver on the ground, COSLA said today (Monday 16th January).
COSLA was clear that this year we needed and asked for a £1bn extra in real terms however we have ended up with £38million and that this was simply not good enough.
COSLA added that to avoid socially harmful cuts, the finances of Local Government need early and proactive discussions to avoid an annual public argument about the reality of what can and cannot be afforded by Councils.
Councils also need more freedom to address local priorities and the ability to focus on improving outcomes.
Commenting today, COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “Given the significance of our council services to the lives and livelihoods of everyone across Scotland, communities deserve clear and consistent facts in relation to Local Government finance rather than a yearly debate on how much money is or is not available.
“All our communities are concerned about is the level of service they can expect that there is support for the most vulnerable and want to ensure their local environment looks and feels as good as it can – all of these things are under threat because of successive years of underfunding.
“Last week saw the publication of the Accounts Commission’s report on the health of council finances. The report makes it clear that councils are going to have to take very tough decisions over the next few years to balance the books, given the financial pressures they face.
“Responding to the Accounts Commission report, Scottish Government has quoted both real and cash terms increases of £2.2 bn between 2013-14 and 2022-23, but this is contradictory.
“We owe it to our communities to be clear, consistent and transparent about the starting point and how much less, in reality, councils have to spend year on year on the services that our communities rely on.
“In 2013-14, the Local Government funding settlement was worth £10.3 bn. Looking to 22-23 the Scottish Government provided £12.5 bn. This does equate to a £2.2 bn cash increase. However, that increase is heavily ring fenced and directed funding for core services and local priorities has stayed the same.
“The reality of having the same amount of money this year as 10 years ago for core services is a real terms cut. As well as increasing costs, this money is also now required to deliver more services than it was 10 years ago – Scotland’s population has increased, the number of households has gone up, COVID has left a legacy of support needs for the most vulnerable and as people live longer, their care needs have become more complex. This is just a snapshot of the demands being faced by councils, not to mention inflation and energy costs.
“For 2023-24, Scottish Government has stated that councils have seen a “£570m increase in their budgets” but the reality is, that only £38m of this can go towards pressures such as inflation, pay and service demand with the rest is for policy commitments that are already in the system, for example £100m to meet Real Living Wage commitments in social care.
“To put this into perspective, a 1% increase in pay across the Local Government workforces equates to around £100m. £38m will not go very far, especially when combined with energy price hikes, supporting the most vulnerable and our commitments to tackle the climate emergency.
“This year, demand for services like social care is at an all-time high but given the range of pressure facing councils, they simply don’t have the resources they need to work towards keep people out of hospital.
“Each day during winter, there is quite rightly a focus on getting people out of hospital to free up beds– currently councils support just over 97% of patients to be discharged without delay.
“The problem is not just getting people out of hospital but stopping them going in – councils simply don’t have the resources they need to provide the care packages or the interventions that prevent ill-health.
“COSLA’s key concerns are not only the socially harmful impact of cuts on our communities, but the way in which Local Government finance has been presented to them. The messaging is that there is more money for essential services each year despite this not being the case with councils asking communities about where they want to see cuts and reductions if essential services, like schools, roads, waste collection, child and adult protection, environmental health and social care are to continue to be delivered, every day of every year.”
The EIS has announced 22 additional days of strike action in an escalation of the dispute over teachers’ pay.
This is in addition to the previously announced 16-day programme of rolling strike action, set to begin in schools across the country next week. EIS members have previously taken three days of national strike action – one in November and two in January – in the continuing campaign for a fair pay settlement for the year 2022.
The EIS Executive Committee met yesterday and agreed a programme of additional strike action that will include two days of national strike action in all schools and sectors on 28 February and 1 March, followed by a rolling programme of strikes for 20 days between 13 March and 21 April.
Over the rolling strike period, each local authority area will be impacted by three consecutive days of strike action, with one day of strike action in all schools bookended on either side by one-day strikes in primary and secondary schools.
Commenting following the meeting of EIS Executive Committee, General Secretary Andrea Bradley said, “The programme of additional strike action, agreed today, is a direct response to the inaction of the Scottish Government and COSLA (Convention of Scottish Local Authorities) on teacher pay.
“After a year of dither, delay and disingenuity from the Scottish Government and COSLA, Scotland’s teachers have simply had enough.
“The recent days of strike action by Scotland’s teachers have succeeded in bringing COSLA and the Scottish Government back to the negotiating table – but they have yet to put a single extra penny onto that table.
“Scotland’s teachers rejected a sub-inflationary 5% offer six months ago, and little or no progress has been made in negotiations since. The prospect of 22 additional days of strike action, on top of the 16 days of rolling action set to begin next week, should signal clearly to the Scottish Government and COSLA that they must now act with urgency.
“Our members are resolute and determined to secure a fair pay settlement, which both properly reflects their value and also takes account of the soaring cost of living.”
Talks with COSLA on Thursday produced no improved pay offer.
Virtually every state Secondary school in Scotland closed yesterday teachers continue to strike in pursuit of a fair pay settlement.
Following Tueday’s highly successful strike in the primary sector, Secondary teachers and associated professionals turned out in huge numbers on picket lines and at demonstrations and rallies right across Scotland.
Amongst the demonstrations yesterday was a rally of teachers outside Bute House in Edinburgh, the official residence of the First Minister, Nicola Sturgeon.
Commenting on Wednesday’s strike action, EIS General Secretary Andrea Bradley said: “Following Tuesday’s show of strength from primary teachers, today it is Scotland’s secondary teachers and associated professionals who are on strike and demanding that the Scottish Government and COSLA pay attention.
“Teachers really do not want to be out in the streets – in the cold, wind and rain – to seek a fair pay increase, but have been forced into this position by the inaction of the Scottish Government and COSLA on teacher pay.
“After dragging the negotiating process out for the best part of a year, the Scottish Government and COSLA only have themselves to blame for the situation we find ourselves in today.”
Ms Bradley added, “For six months, we have seen little or no progress in negotiations, with the Scottish Government and COSLA only reheating an old, already rejected offer, and attempting to sell it to teachers as new, fresh and appealing.
“Scotland’s teachers haven’t been fooled by the spin, and are now taking the only option that remains – the withdrawal of their labour – to seek a better, fairer offer on pay.
“It is only within the last week, with the second round of strike action looming, that we have seen some small signs that the Scottish Government and COSLA are prepared to work towards making an improved offer.
“Should a new, improved and credible, offer arrive in sufficient time, this will be considered by the EIS and our sister teacher unions in the hope that further strike action, scheduled to commence next week for 16 consecutive days, may yet be avoided.”
Industrial action in schools next week: all primaries closed on Tuesday 10 January, all secondaries closed on Wednesday 11 January, special schools are also affected.
Full details incl. nurseries and free school meal payments here:
The EIS has said that the New Year’s resolution for both the Scottish Government and COSLA must be to pay Scotland’s teachers fairly by coming back with a greatly improved pay offer.
Scotland’s teachers have not received a pay rise for the year 2022, despite being due for a pay increase in April.
Commenting as schools broke up for the Christmas holidays, EIS General Secretary Andrea Bradley said, “As 2022 comes to a close, Scotland’s teachers are still waiting for a pay settlement that should have been paid to them in April. What Scotland’s teachers have been offered by the Scottish Government and COSLA amounts to a record real-terms pay cut of up to 11% in a single year.
“This is in the context of the value of teachers’ pay dropping by a massive 20% since 2008. It is little wonder that teachers voted so overwhelmingly for strike action, and remain determined to stand firm against the unprecedented pay cuts that have been offered.”
Ms Bradley continued, “Having taken one day of strike action in November, EIS members will resume a programme of strike action in the New Year. We have offered every opportunity to the Scottish Government and COSLA to settle this dispute, but they have stubbornly failed to take advantage of those opportunities.
“Reheating old offers and repeating tired spin is not going to fool Scotland’s teachers, and it is not going to resolve this dispute or end the ongoing programme of strike action. Neither teachers nor the public believe the claims that Scottish teachers are better paid than their counterparts elsewhere in the UK and internationally – in England the top of the pay scale is higher than in Scotland, and 14 OECD countries sit above Scotland on the league table of teachers’ pay.
“The only OECD league table on teachers’ conditions that Scotland has climbed is the one which quite shockingly shows that Scotland has the third worst record in the world when it comes to excessive class contact hours.
“Rather than Scottish Government spin, only a substantially improved, fair and credible offer can end this dispute and let teachers focus fully on teaching young people rather than having to fight for a fair wage.”
Ms Bradley added, “The Scottish Government and COSLA must do better. They owe it to Scotland’s teachers – the majority of them women – and Scotland’s pupils to end this dispute by committing to pay Scotland’s teachers a fair pay increase. This is about pay justice and gender pay justice.
“Teachers worked tirelessly as key workers throughout the pandemic, often putting their own health at risk to ensure the best possible education for Scotland’s young people amidst very difficult circumstances. Now, in the early stages of education recovery, teachers want to be in the classroom supporting pupils. But, as the cost-of-living soars, teachers deserve and expect an appropriate increase in their pay – not a deep real-terms pay cut, as they have consistently been offered.
“Education must be a top priority for government and for local authorities, and that means investing in Education, including investing in teachers, to ensure the best possible educational experience for all of Scotland’s young people.
“Scotland has a stated commitment to reducing the gender pay gap and to being a Fair Work nation by 2025. Having made these commitments and as the new year dawns, it has to be time for the Scottish Government and COSLA to resolve to offer a fair pay settlement to all of Scotland’s teachers.”
Ministers have reached an agreement with social landlords on below-inflation rent increases for the next financial year.
Organisations representing social landlords have announced their members’ plans for average rent increases for 2023-24, which will keep rents significantly below private market levels.
Under the Cost of Living (Tenant Protection) Act 2022, rents are effectively frozen in the social rented sectors until 31 March 2023. Decisions on future plans for the private sector rent freeze, as well as other measures contained in the Act, will be announced in the coming weeks.
Tenants’ Rights Minister Patrick Harvie said: “Our emergency legislation has given people – whether they rent in the private or social rented sector – reassurance within their current tenancies through the worst of the winter, even as their other costs have been rising.
“We recognise the enormous pressures households are facing, and by making this announcement now we aim to give social tenants advance notice, and confidence that any rent increase will be well below inflation.
“The statements of intent from the social rented sector, based on consultations with tenants, will keep rents affordable while allowing social landlords to continue investing in essential services such as home improvements and maintenance.”
Councillor Maureen Chalmers, COSLA’s Community Wellbeing Spokesperson, said: “This is good news for Local Authority tenants from Scotland’s Council Leaders today.
“Council Leaders recognise the severe financial crisis many of our tenants and households are facing and have acted decisively to provide some assurance,despite the financial challenges Scotland’s Councils face.
“Leaders recognise that the very high rates of inflation around the costs of heating and food disproportionately affect those on lower incomes and are acutely aware of the proportion of individuals’ income that is spent on accommodation in the rented sector and that this can vary considerably.
“In balancing the wide range of competing factors, Leaders with housing stock will seek to reach agreement with tenants over any increase in rents for the year 2023 – 24. Councils consultative arrangements would normally allow them, subject to approval of local governance structures, to raise rents annually to meet rising costs.
“During these difficult times, as providers of social housing and Gypsy/Traveller pitch or site provision, we intend to keep the rental and fee increases to an average of less than £5 a week across the country.
“Collectively, whether we are directly landlords or not, we urge all landlords setting rents in 2023-24 to adopt a similar consultative approach with their tenants, many of whom will be affected by the on-going crisis.”
Sally Thomas, Chief Executive at the Scottish Federation of Housing Associations (SFHA), said: “We welcome the fact that Scottish Government has worked closely with the sector, to understand the evidence and avoid unintended consequences of this legislation, and to find a collaborative way forward.
“Investing in good quality, warm homes for social rent is crucial to tackling poverty in Scotland and protecting new and existing tenants from the increasing cost of living.”
Independent survey shows benefits to children and families
The vast majority of parents using Scottish Government-funded Early Learning and Childcare (ELC) are satisfied with its quality, according to new research.
In an independent survey with more than 8,000 respondents, 97% of parents and carers with a three to five-year-old said they had accessed funded ELC places since August 2021 – and of those, 97% were satisfied with the quality of provision.
A total of 88% of those with a three to five-year-old were satisfied that they could use their funded ELC hours in a way that meets their family’s needs.
The main reasons parents and carers said they used ELC were to benefit their child’s development, confidence, independence and learning.
Survey respondents also valued the opportunities that funded ELC gave them to work, look for employment or to undertake education and training. Others reported that it alleviated stress and meant they had more time for themselves and their families.
Across Scotland, all three and four-year-olds and two-year-olds who need it most can access up to 1,140 hours of funded ELC a year. If families paid for the 1,140 hours themselves, it would cost them around £5,000 per eligible child per year.
In 2023-24, the Scottish Government will invest around £1 billion through local government in funding for the 1,140 hours offer.
Children’s Minister Clare Haughey said: “I am really encouraged to see such a high level of satisfaction among parents with the quality of the funded Early Learning and Childcare they have received.
“Scotland is the only part of the UK where all three and four-year-olds and eligible two-year-olds can access up to 1,140 hours of funded ELC a year. As this independent survey demonstrates, funded high-quality ELC brings a range of benefits to families, including helping children’s educational development and supporting parents’ ability to work and find employment.”
COSLA Children and Young People spokesperson Councillor Tony Buchanan said: “I welcome the publication of this report, which provides valuable insights into parents’ use of, and views on, Early Learning and Childcare provision in Scotland.
“The findings clearly show the significant impact that the increased entitlement to 1,140 hours of funded ELC is having, and indicate high levels of satisfaction and positive experiences amongst those parents who responded to the survey, including in relation to flexibility, accessibility, and quality of provision.
“Local Government is committed to continuing to work with our partners to ensure that funded ELC provision works for parents, carers, and children, including considering how remaining challenges might be addressed.”
COSLA: COUNCIL SERVICES AT SEVERE RISK AS SCOTTISH GOVERNMENT FAILS TO RESPOND TO SOS CALL
The Scottish Government has failed to respond in its Budget in any meaningful way to COSLA’s SOS calls. This means that Councils are left at real financial risk for the coming year, and it will be the people of Scotland and our communities who suffer as a result.
Following a full meeting of Council Leaders yesterday (Friday 16th December) COSLA said it was extremely disappointed that once again Local Government and the essential services it delivers have not been prioritised by the Scottish Government in Thursday’s budget announcement.
Council Leaders also expressed their extreme disappointment with the settlement for Local Government and with its presentation which lacks consistency with a partnership approach.
As part of offering up a solution, Leaders called on the Scottish Government to pause the current plans for structural change required to set up the National Care Service and redirect the funding allocated within the Scottish Budget into social care and preventative services through Local Government.
Speaking yesterday COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “Council Services will now be at absolute breaking point and some may have to stop altogether.
“This is a result of cuts to our Councils’ core budgets and direction on spend towards other Scottish Government priorities over the last few years. Yesterday’s budget announcement compounds this and there is a real risk that many of our essential services will not only be cut but may have to stop altogether.
“Council Leaders were unanimous today that we need to work together, with one Local Government voice, to raise our concerns at the highest level.
“The Fraser of Allander Institute has already commented on the settlement stating that although Scottish Government has presented a cash increase for Local Government, Councils will see a “real-terms decrease relative to a GDP deflator of 4.9%.”
COSLA President Councillor Shona Morrison added: “The reality of the situation is that yet again, the essential services Councils deliver have not been prioritised by the Scottish Government.
“COSLA asked for £1bn but from our initial assessment of the Budget, we believe that Local Government will see an uplift of only £71m once policy commitments are taken into account. Whilst the decision to allow councils the freedom to set their own council tax rates is welcomed, scope will be extremely limited this year, as councils seek to protect the most vulnerable in our communities, recognising the cost-of-living crisis.
COSLA Vice President Councillor Steven Heddle said: “Yes, money is tight, but Scottish Government has made political choices. Cuts to our core budget hit the most vulnerable in our communities the hardest and are damaging to our workforce – Scottish Government needs to consider this seriously.
“That is why Council Leaders were unanimous today that we must fight for a fairer settlement.”
Helping families and services through the cost of living crisis
Eradicating child poverty, transforming the economy to deliver net zero and creating sustainable public services will be the key aims of the Scottish Budget 2023-24.
Deputy First Minister John Swinney warned relentless prioritisation was needed to tackle the combined impact of high inflation, the ongoing economic consequences of Brexit and the UK Government’s plans to reduce expenditure in future years, which are projected to reduce the Scottish Government’s funding under the Barnett formula from 2025.
He said the Budget would channel support to where it was most needed while beginning a process of reform to help public services face the future with strength and resilience.
Mr Swinney said: “Families, businesses and our public finances are under sustained economic pressure and the Scottish Government has acted decisively to provide what support it can within its limited resources.
“We have allocated £3 billion in 2022-23 to mitigate the impact of the cost of living crisis, including targeted help such as increasing the game changing Scottish Child Payment to £25 per eligible child per week – a 150% increase within eight months.
“However, given the fiscal constraints of devolution, it is not possible to go as far as we would like and so the Budget will prioritise three areas – eradicating child poverty, transforming the economy to deliver net zero and creating sustainable public services.
“Difficult decisions are required and resources will be targeted where they are most needed and can secure maximum value from every pound spent.
“The economic challenges we face also require a fundamental change in the way we manage public spending. The Bank of England is predicting the longest recession for a century so this Budget will set in motion reforms that will place our finances and public services on a more sustainable and resilient footing for the future.
“This is a time for firm leadership and bold decision making. Steps we take now will help ensure Scotland emerges from the current crisis a stronger, fairer, greener country.”
The Scottish Budget 2023-24 will be presented to the Scottish Parliament on Thursday, 15 December.
COSLA launched its campaign last week in advance of the Scottish Budget on 15 December – an ‘SOS call’ to Save our Services.
It is a rallying call, telling communities everything they need to know about the impact of the Scottish Government’s forthcoming budget on our council services, and our communities in the coming year.
COSLA says the SOS call reflects the extremely precarious financial situation in which Councils in Scotland find themselves, during a particularly challenging period. This is as a consequence of real-term cuts to the core budgets of Scotland’s 32 Councils over recent years.
The call comes ahead of the Deputy First Minister outlining the Scottish Budget on December 15th but reflects the reality of what the government set out in its spending plans last May.
COSLA’s President Councillor Shona Morrison said: “There are many areas in which Local and Scottish Government work together for our communities and I fully appreciate that money is extremely tight – all Governments are having to cope with rising inflation and fuel costs
“However, with little room left to manoeuver, the Scottish Government’s spending plans as they stand will see Council services either significantly reduced, cut or stopped altogether. 70% of Local Government’s budget is spent on staffing, so it is inevitable that current spending plans will lead to job losses. The very serious impact of this scenario is that the critical work council staff do on prevention and early intervention will reduce significantly.
COSLA’s Vice President Councillor Steven Heddle said: “In May, the ‘flat cash’ plans looked difficult for us. Today, with prices increasing across the board, including energy costs, and inflation sitting at almost 10% and at risk of rising still further, Local Government is now on extremely dangerous ground.
“Make no mistake, what we will now face is Councils struggling to deliver even the basic, essential services that communities rely on. To put this into perspective, the estimated £1bn gap for councils in 23/24 is the equivalent of the entire budget for early learning and childcare across Scotland or 17,500 teachers. A funding gap of this magnitude will have an impact on all our communities, with the most vulnerable who rely on these services suffering the worst consequences.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann concluded: “We are at a crisis point like never before – the impact for communities is serious and needs to be reconsidered.
“The financial impacts for other parts of the public sector are also serious. When councils can’t focus spend on prevention, for example on preventing ill-health, services like the NHS will end up spending significantly more money when issues become more serious.
“Directors of Finance across Scotland’s Councils are sufficiently concerned about the financial sustainability of councils that they have written to the Deputy First Minister outlining their concerns.
“This really is an SOS call from Scotland’s Councils –people in communities across Scotland will be pulled into further poverty and uncertainty without adequate funding for the vital services that support them”.
