Tag: COSLA

LGIU: 2026 State of Local Government Finance in Scotland

No improvement to the financial sustainability of councils across Scotland with seven in ten saying they will be unable to balance budget within five years

The latest research from the Local Government Information Unit’s (LGIU) third annual State of Local Government Finance in Scotland report reveals that all councils who responded will be increasing council tax and decreasing their spending on services this year.

Yet, despite utilising these and other available measures, the new research found that seven out of ten senior council figures believe they won’t be able to balance their budgets within the next five years, and not one respondent expressed confidence in the sustainability of local government finance.

Chief Executives, Leaders and Directors of Finance representing 81% of Scottish local authorities took part in the research, which paints a picture of a sector pulling out all the stops available to them to respond to rising service needs with ever-diminishing resources. These responses provide an unparalleled look into the view from the inside when it comes to managing local government finances.

Adult social care once again topped the table for both immediate and long-term pressures that council finances face, and the majority of councils want more powers to raise revenue, including the freedom to levy other local taxes. Seventy per cent also supported a local share of national taxes being made available.

Some of the other key recommendations from the report include enshrining in legislation the principles of the Verity House Agreement as well as a full-scale review of local government finance, including sources of funding, the formulae for distribution, and the place of local government in the wider public sector.

A full list of recommendations from the report can be found below. 

Jonathan Carr-West, Chief Executive, LGIU, said: “Local government finance in Scotland is still not fit for purpose. Despite recent changes, the underlying problems that threaten councils’ financial sustainability have not been resolved. 

“Financial pressures on councils continue to move in only one direction as service demands increase and local leaders have ever-diminishing budgets with which to respond. Local government is in a precarious position. With 70% of respondents indicating that they are close to effective bankruptcy, something has to give very soon.

“Our latest research, released as we approach the 2026 Scottish Parliament election, serves as a stark warning: councils overwhelmingly feel their current funding situation jeopardises their ability to protect vulnerable citizens, increases the risk of insolvency, and diminishes the quality of life in their communities.

“However, this negative trajectory is not inevitable. Councils across Scotland are ready and willing to collaborate with the Scottish Government to implement meaningful and lasting reform. Our research clearly defines the necessary changes and presents the sector’s solutions for achieving them. 

“While the complexities of local government finance mean there is no single simple fix, the sector shares near-universal agreement on the problems and offers a wealth of ideas on how they can be solved.”  

Summary of key recommendations

1) An agreed national convention between the Scottish Government and local government to outline procedures and actions for councils that are unable to pass a balanced budget. 

2) The next Scottish Parliament should agree to implement and enshrine in legislation the principles of the Verity House Agreement, and commit to an annual review by the Scottish Parliament covering the key principles.

3) In this election year, parties should commit to a full-scale review of local government finance, including sources of funding, the formulae for distribution, and the place of local government in the wider public sector. 

4) Scottish and local governments should be brought together in a standing commission or representative body, which should be defined in statute with a key role in pre-budget engagement processes, negotiation of the funding settlement, and any and all decisions that have an impact on councils.

The exact responsibilities and membership of this body should be a matter for future discussions, but should at a minimum include ministerial representation, and local elected representatives and senior officers from local government. 

COSLA calls for investment in social care funding

Social care pressures are spiralling. Integration Joint Boards have faced £497m pressures in 2025/26. A £750m investment in the Scottish Budget could stabilise the system, says COSLA:

COSLA is urging the Scottish Government to provide a £16 billion boost in revenue in the Scottish Budget, to secure fair and sustainable funding for councils.

A demand for a £844 million general capital settlement has also been requested, plus a restoration of the Affordable Housing Supply Programme to £955 million, to maintain, repair, expand and secure the future of Council estates.

COSLA has launched a lobbying campaign urging the Scottish Government to use the upcoming Scottish Budget to provide councils with the fair, sustainable and multi-year funding needed to protect essential local services.

The campaign – ‘Strong Councils, Strong Communities’ – highlights growing pressures facing local government and the very real consequences of continued underfunding for communities across Scotland. The financial pressures in social care and housing are two key areas COSLA are asking the Scottish Government to specifically address in their upcoming budget.

COSLA warns that without urgent action in January’s Budget, councils will be unable to maintain essential services such as social care, education, housing support, roads, and community safety.

COSLA Resources Spokesperson, Councillor Ricky Bell, said: ““Scotland’s councils deliver the services that people rely on every single day — from caring for older and vulnerable people to keeping schools open, streets safe and communities thriving.

“Councils are facing greater demand than ever and are required to do more with significantly less. This is unsustainable.

“The upcoming Scottish Budget is a pivotal moment. The Scottish Government must deliver a settlement that matches the scale of the challenge. Without fair funding, communities will see services reduced and inequalities deepen, and we will struggle to meet national targets in key areas such as child poverty, housing, and net zero”

This year, councils continue to face rising inflation, increasing demand for services, and the continued impact of workforce pressures across social care and education. COSLA’s analysis shows that even maintaining current services requires substantial additional investment.

As a fair and sustainable overall financial settlement COSLA’s key asks from the campaign include:

  • An immediate £750m investment in social care.
  • Flexibility for councils to make local decisions that respond to community needs.
  • Recognition of local government as an equal partner in delivering national priorities and tackling inequalities.

COSLA President, Councillor Shona Morrison, added: “Councils work tirelessly to deliver for Scotland’s communities, however, continued pressure on resources makes this increasingly challenging.

“This is about safeguarding what matters most, support for the most vulnerable, opportunities for young people, support for families, and safe, thriving communities.

“We hope the Budget will reflect the vital role Local Government plays in Scotland’s public services.”

COSLA calls for £16bn budget boost

COSLA is urging the Scottish Government to provide a £16 billion boost in revenue in the Scottish Budget, to secure fair and sustainable funding for Scotland’s councils.

A demand for a £844 million general capital settlement has also been requested, plus a restoration of the Affordable Housing Supply Programme to £955 million, to maintain, repair, expand and secure the future of Council estates.

COSLA has today launched a lobbying campaign urging the Scottish Government to use the upcoming Scottish Budget to provide councils with the fair, sustainable and multi-year funding needed to protect essential local services.

The campaign – ‘Strong Councils, Strong Communities’ – highlights growing pressures facing local government and the very real consequences of continued underfunding for communities across Scotland. The financial pressures in social care and housing are two key areas COSLA are asking the Scottish Government to specifically address in their upcoming budget.

COSLA warns that without urgent action in January’s Budget, councils will be unable to maintain essential services such as social care, education, housing support, roads, and community safety.

COSLA Resources Spokesperson, Councillor Ricky Bell, said: “Scotland’s councils deliver the services that people rely on every single day — from caring for older and vulnerable people to keeping schools open, streets safe and communities thriving. Councils are facing greater demand than ever and are required to do more with significantly less. This is unsustainable.

“The upcoming Scottish Budget is a pivotal moment. The Scottish Government must deliver a settlement that matches the scale of the challenge. Without fair funding, communities will see services reduced and inequalities deepen, and we will struggle to meet national targets in key areas such as child poverty, housing, and net zero”

This year, councils continue to face rising inflation, increasing demand for services, and the continued impact of workforce pressures across social care and education. COSLA’s analysis shows that even maintaining current services requires substantial additional investment. As a fair and sustainable overall financial settlement COSLA’s key asks from the campaign include:

  • An immediate £750m investment in social care.
  • Flexibility for councils to make local decisions that respond to community needs.
  • Recognition of local government as an equal partner in delivering national priorities and tackling inequalities.

COSLA President, Councillor Shona Morrison, added: “Councils work tirelessly to deliver for Scotland’s communities, however, continued pressure on resources makes this increasingly challenging.

“This is about safeguarding what matters most, support for the most vulnerable, opportunities for young people, support for families, and safe, thriving communities. We hope the Budget will reflect the vital role Local Government plays in Scotland’s public services.”

Over £16 Billion needed in the Scottish Budget to protect essential services, COSLA Warns

COSLA is urging the Scottish Government to provide a £16 billion boost in revenue in the Scottish Budget, to secure fair and sustainable funding for councils.

A demand for a £844 million general capital settlement has also been requested, plus a restoration of the Affordable Housing Supply Programme to £955 million, to maintain, repair, expand and secure the future of Council estates.

COSLA has today launched a lobbying campaign urging the Scottish Government to use the upcoming Scottish Budget to provide councils with the fair, sustainable and multi-year funding needed to protect essential local services.

The campaign – ‘Strong Councils, Strong Communities’ – highlights growing pressures facing local government and the very real consequences of continued underfunding for communities across Scotland. The financial pressures in social care and housing are two key areas COSLA are asking the Scottish Government to specifically address in their upcoming budget.

COSLA warns that without urgent action in January’s Budget, councils will be unable to maintain essential services such as social care, education, housing support, roads, and community safety.

COSLA Resources Spokesperson, Councillor Ricky Bell, said: “Scotland’s councils deliver the services that people rely on every single day — from caring for older and vulnerable people to keeping schools open, streets safe and communities thriving. Councils are facing greater demand than ever and are required to do more with significantly less. This is unsustainable.

“The upcoming Scottish Budget is a pivotal moment. The Scottish Government must deliver a settlement that matches the scale of the challenge. Without fair funding, communities will see services reduced and inequalities deepen, and we will struggle to meet national targets in key areas such as child poverty, housing, and net zero”

This year, councils continue to face rising inflation, increasing demand for services, and the continued impact of workforce pressures across social care and education. COSLA’s analysis shows that even maintaining current services requires substantial additional investment.

As a fair and sustainable overall financial settlement COSLA’s key asks from the campaign include:

  • An immediate £750m investment in social care.
  • Flexibility for councils to make local decisions that respond to community needs.
  • Recognition of local government as an equal partner in delivering national priorities and tackling inequalities.

COSLA President, Councillor Shona Morrison, added: “Councils work tirelessly to deliver for Scotland’s communities, however, continued pressure on resources makes this increasingly challenging.

“This is about safeguarding what matters most, support for the most vulnerable, opportunities for young people, support for families, and safe, thriving communities. We hope the Budget will reflect the vital role Local Government plays in Scotland’s public services.”

Budget-Lobbying-Campaign-2025-Final-Version-25-12-08Download

Supporting regional partnerships to drive growth

Empowering regions to make the decisions that are right for them

Regional economic partnerships can further boost local economies and support jobs across Scotland, First Minister John Swinney has said.

In a speech to the Glasgow State of the City Economy Conference, the First Minister outlined proposed legislation – to be introduced in the next Parliament subject to the election outcome – that would help regional partnerships to unlock new powers and deliver on local priorities.

Speaking in Glasgow, the First Minister said: “Glasgow and Scotland are well placed to flourish in the years ahead.

“It is because we are so blessed that I am all the more determined to deliver on my government’s central economic mission: to increase the wealth and wellbeing our citizens by building a more productive, more dynamic, and more regionally balanced economy  driven by innovation, investment, and inclusive growth.

“Therefore capable of achieving the governments aims of eradicating child poverty, enabling our transition to net zero and strengthening our public services, particularly the National Health Service.

“I want our regional partnerships like Glasgow City Region, to have the opportunity to expand their strategic capacities and role, with a package of additional devolved competencies available over time.

“On the table, powers such as skills, economic development and planning.

“That includes empowering Scotland’s regions because working in partnership with national government, it is our regions that are best placed to drive inclusive economic growth in a way that is both local and strategic.”

COSLA Environment and Economy Spokesperson, Cllr Gail Macgregor said: “As we’ve made clear in our Manifesto, councils can make places thrive, investing in public spaces, transport systems and local economies.

“A place-based approach to policymaking is essential. Looking to the future, we are seeking to maximise the benefits that regional economies can realise, and the First Minister’s announcement today is a positive step in that journey.

“I particularly welcome the place-based flexibility and empowerment suggested, and look forward to working with partners to develop these proposals further.”

Leader of Glasgow City Council Susan Aitken said: “Glasgow City Region is already one of the UK’s biggest collaborative success stories – but we need the backing of both our governments to truly empower us to unlock its extraordinary potential.

“I’m delighted that the First Minister has today recognised our region holds the country’s most compelling opportunity for inclusive economic growth, equity, innovation and transformation.

“His commitment puts the devolution of powers and resources to Scotland’s communities firmly on the national agenda – and Glasgow City Region is more than ready to lead the way.”

Roadmap to Scotland’s digital future

Updated strategy launched

A new blueprint sets out a series of actions to harness digital to boost the economy and improve public services.

The updated National Digital Strategy aims to attract investment, deliver sustainable public services and create better opportunities for the people of Scotland.

The strategy outlines a number of steps, including delivering a pilot of a new app by 2026 to let people access personalised public services. By 2028, another pilot will explore ways AI can deliver efficiencies in public services, such as streamlining administrative tasks.

The joint strategy with local government is designed to build on progress since it was first launched in 2021.

Public Finance Minister Ivan McKee said: “The strategy sets out our ambition to create a digitally connected country to create economic growth and help people and businesses thrive.

“It will support work to deliver sustainable digital public services fit for the future and help widen opportunities that digital offers.

“The 2021 publication, one of the first joint national strategies between Scottish Government and local government, helped to build skills and talent to strengthen our digital capability. This is the next step as we aim to accelerate progress.

“The refreshed strategy’s contribution and relevance to the public service reform agenda cannot be overstated, with a focus on collaboration and embracing innovation to deliver improved public services and improve lives.” 

COSLA Resources spokesperson Councillor Katie Hagmann said: “Local government are co-authors and co-owners of this vision. This refreshed strategy is our route map; the delivery plans explain how we will navigate change, remain transparent and measure progress.

“Through collaboration and shared action, we can build a future-ready, digital Scotland where everyone has the chance to participate and thrive, and no one is left behind.”

This is a joint strategy between the Scottish Government and local government, represented by COSLA and the Digital Office for Scottish Local Government.

The Digital Strategy for Scotland Vision.

The Digital Public Services Delivery Plan.

COSLA President says rebuilding trust in politics starts with stronger local voices

THE PRESIDENT of the body representing Scotland’s 32 councils has urged a room of leading political figures to rebuild trust by giving people and places a stronger voice in how decisions are made locally.

Speaking at the COSLA Annual Conference in St Andrews this week, Councillor Shona Morrison used her opening address to urge political leaders to back a bold, long-term vision for local democracy – one that gives communities the powers, trust, and resources they need to thrive.

The call comes at the first major event following the launch of COSLA’s manifesto, which acknowledges 50 years of the organisation and sets out a clear roadmap for strengthening local government and empowering communities across Scotland.

In introducing the overarching theme of the event, “The Future of Localism”, Councillor Morrison told delegates: “Localism means trusting communities, empowering councils and rejecting unnecessary centralisation. It means recognising that Scotland’s strength lies in its diversity, urban, rural, island – and that one-size-fits-all solutions rarely work.

“It means giving councils the powers and resources to empower those voices in their communities, so that decisions are shaped together, with local knowledge at the heart of every choice.”

Marking COSLA’s 50th anniversary, the 2025 Conference brings together leaders from across local government, business, academia and public life.

The event features high-profile contributions from First Minister John Swinney MSP, Douglas Alexander MP, and Alastair Campbell, alongside figures such as Olympic champion Duncan Scott OBE, David Duke MBE, and Professor Sir Gregor Smith, Chief Medical Officer for Scotland.

Building on the momentum of the manifesto, the President reiterated COSLA’s key asks of all political parties ahead of the 2026 election:

  • A fair, multi-year financial settlement to protect and plan local services.
    Empowerment of local democracy, ensuring decisions are taken as close as possible to communities.
  • A valued workforce, recognising the essential role of council staff in delivering public services.
  • Action for future generations, embedding children’s rights and opportunities at the centre of policy-making.
  • Investment in thriving and cohesive communities, to tackle inequality and strengthen local resilience.
  • Support for thriving places, through sustainable economic growth, housing and transport investment, and a just transition to net zero.

COSLA’s manifesto, launched last month, outlines what the organisation describes as a “turning point” in the relationship between national and local government. It calls for full implementation of the Verity House Agreement, reform of local taxation, and new powers for councils to make local choices based on local priorities.

Councillor Morrison added: “The manifesto is about ensuring we set our own agenda, rather than merely responding to that of others. COSLA is a voice of influence, and we want it to be heard strongly by those seeking parliamentary election and those that wish to form the next Scottish Government.

“It calls for a relationship between local and national government that is based on trust, respect, and parity of esteem. We are asking those who make up the next Scottish Government to empower local democracy and our communities. Decisions must be taken as close to communities as possible.

“Our asks are not optional, they are essential if Scotland is to thrive. We want to work constructively with all parties, but we will not accept anything less than fairness and the power to act for our communities.”

Taking place in St Andrews, The COSLA Annual Conference, sponsored by CCLA, took place over two days with plenary sessions, panels, and fringe discussions on topics including care reform, climate leadership, community cohesion, and online life for future generations.

#COSLA25

COSLA-Manifesto-2026v2Download

SNP MSP welcomes Edinburgh teachers accepting two-year pay deal

SNP MSP Gordon Macdonald has welcomed news that teachers across Edinburgh have accepted a two-year pay offer which ensures that Scotland’s classroom teachers will remain the best paid in the UK. 

The Teachers’ Panel of the Scottish Negotiating Committee for Teachers has this week accepted the offer tabled by local authorities’ umbrella body Cosla. The terms include a 4% pay increase in 2025/26 followed by an additional 0.25% in April and 3.25% next August. 

The SNP in government continues to prioritise investment in our children and young people’s education, investing £4.3 billion into Scotland’s education system in 2025-26. 

Thanks to this investment, Scotland has a higher spending per pupil than any other devolved UK nation and has the lowest pupil to teacher ratios. 

Local SNP MSP Gordon Macdonald said: “I am pleased that teachers across the city have accepted this pay offer, which will ensure that Scottish teachers on the main-grade scale will continue to be the best paid in the UK. 

“By investing in children and young people’s education, the SNP is helping to break the poverty-related cycle. 

“Under this SNP government, the poverty-related gap for young people leaving school and going on to a positive destination has reduced by 60 per cent since 2009 – narrowing at all three key qualification levels. 

“I am delighted that our incredible teachers will continue to be well-paid for the fantastic job they do in improving the lives of young people both in Edinburgh Pentlands and the wider city.”

COSLA is pleased to note that the Scottish Negotiating Committee for Teachers (SNCT) panel have accepted a two-year pay award.

COSLA’s Resources Spokesperson, Councillor Katie Hagmann welcomed the news, commenting: “The award secures pay uplifts for Scottish Teachers and associated professionals for the period 1st August 2025 to 31st July 2027.”

The latest pay agreement means Scotland’s Teachers will receive:

  • A 4% increase from 1/8/25 rising to 4.25% on 1/4/26
  • A 3.25% increase on 1/8/26

Councillor Hagmann continued: “Councils will now work to implement the first uplift over the next weeks as payroll schedules allow.”

COSLA launch Local Government Promise Annual Report 2025

COSLA has launched the ‘Local Government Promise Annual Report 2025.’

2025 marks the halfway point in Scotland’s journey to Keep The Promise – a commitment made in response to the Independent Care Review to transform the lives of babies, children and young people experiencing care by 2030.

This milestone encourages reflection on the achievements over the last 5 years, as well as the barriers to change and what needs to happen next.

Councillor Tony Buchanan, COSLA’s Children and Young People spokesperson, commented: “2025 marks a key milestone in Scotland’s journey to Keep The Promise. As we reach the halfway point, this report offers a powerful reflection on both the achievements and the realities of delivering change.

“Local Government remains deeply committed to supporting babies, children, young people and families.

“Across Scotland, councils are delivering vital services shaped by strong relationships with local communities and a clear understanding of their needs.

“But pressures on the system, including workforce shortages, financial constraints, and complex policy demands, are real. Despite this, councils continue to lead with dedication and innovation.

“We stand firmly behind our local teams and the communities they serve. To truly keep the promise, ambition must be matched by investment, and policy must be realistic and coherent. Progress has been made, but we must go further and faster.“

Download The Promise – Annual Report 2025 PDF, 389.28 KB