It is crucial that the City of Edinburgh Council continues to engage with and then act on the views of its residents and communities as it considers options to make the significant savings needed, says spending watchdog the Accounts Commission.
The council isn’t alone in Scottish local government in having to make substantial savings. But the scale of savings needed – over £100 million by 2029 – means senior officers and councillors must work together to find sustainable ways to deliver differently, improve performance and ultimately reduce costs.
The council has ambitious plans to borrow money to improve housing and school buildings. But this will need to be managed carefully to ensure that plans are affordable and don’t have a detrimental impact on services.
Progress has been made since the Commission last reported, and many services are performing well. But now the council must address declining performance in areas including housing, waste and some aspects of street cleaning.
The Accounts Commission recognises the council’s ambitious plans to end poverty and become a net zero city by 2030.
Given current progress, however, there remains a significant amount of work to achieve these targets, not least in establishing cost implications.
Jo Armstrong, Chair of the Accounts Commission said:“We cannot underestimate the scale of financial challenge.
“The council has successfully achieved savings over recent years. But given increasing demand and financial pressures, the council must accelerate its transformation and change programme.
“Listening to and acting on the views of staff and local communities will be vital.
“The council has real opportunities, including the potential to raise more income. It shouldn’t use the potential of future income, however, to delay making difficult decisions now as challenges will only intensify.”
Council Leader, Cammy Day, said: “We’re encouraged by the Commission’s findings, which recognise the good progress the Council has made since 2020.
“We’ve delivered a lot of change at a time of huge pressure on our services and on our budget, but we’ve stayed true to our priorities of protecting day-to-day services and investing in a fairer, greener future. Our aims to eradicate poverty and become net-zero by 2030 are ambitious, but we need to be aspirational to make sure they stay at the top of our priority list.
“Our focus on getting the basics right for our residents, meanwhile, is also bearing fruit with Edinburgh now a top performing Council in Scotland for street cleanliness, and continued improvements in key areas such as road conditions.
“We acknowledge, however, that there is still much more to be done and we’ve targeted substantial additional resources into key services such as housing, where we know performance has to improve if we are to tackle Edinburgh’s housing emergency.
“We’re continuing to adopt new technologies to make it easier for residents to come to us for help and, as recognised in the report, we’re looking forward to realising the huge benefits our Visitor Levy proposals will bring from 2026 – which we forecast will raise over £100m for the city by 2030.
“It’s no secret, however, that ever more difficult financial decisions lie ahead. Despite the unique pressures that come with being Scotland’s capital city, Edinburgh remains the lowest funded council per head in Scotland, which is having a huge impact on our finances.
“The latest projections show that we will face a budget shortfall of at least £30m next year and we’ll need to work even harder to ensure we can keep on delivering best value for the people of Edinburgh.”
Speakers include Graeme Smith (Unite), Alyson Pollock, Nick Kempe, a Unison rep and more.
We want to make the case for saving the homes as widely known as possible and argue that the future of residential care should be public, democratically accountable and provide security and comfort for all those who need it.
Council budget ‘stays true to core priorities for Edinburgh’
Budget agreed for 2021/22 despite ongoing pressures of Covid response (around £85 million to date)
Budget shaped by – and addresses – key priorities of poverty, sustainability and wellbeing
Council Tax to be frozen in 2021/22
One-year rent freeze for Council house tenants following a joint motion by Conservative, Green and Liberal Democrat groups
Further revisions to the budget may be made depending on Scottish Government and UK Government budget decisions in March
Councillors in Edinburgh have agreed a new business plan and budget framework to drive the Capital’s recovery from the pandemic in the coming years while tackling key priorities of eradicating poverty, cutting carbon emissions and working for a fairer, more inclusive city where every resident feels valued and empowered.
Despite the ongoing financial pressures brought about by the impact of Covid19 on Council services and communities across the city, a balanced £1 billion-plus budget has also been set for the next financial year (2021/22), with Council Tax frozen at 2020/21 levels to help protect household budgets.
In addition, rents for Council house tenants have been frozen for a year (2021/22) following a joint motion by the Conservative, Green and Liberal Democrat groups.
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 yesterday’s annual Budget Meeting, elected members also approved a three-year Business Plan setting out how the Council would respond to the need for change, titled Our Future Council, Our Future City.
The Business Plan brings together the Council’s core priorities and seeks to shape a sustainable, fair and thriving future for Edinburgh post-pandemic.
The Business Plan and the priorities it sets shapes the four-year budget framework (2022/23 – 2025/26) also approved yesterday, which sets out the need for broader reforms to reprioritise and potentially redesign services to achieve more than £100 million of savings over the coming years.
Finance and Resources Convener Councillor Rob Munn said:When we set a three-year balanced budget in February 2020, we had no inkling of the economic and social turmoil the pandemic was about to unleash across the globe.
“As a city and as individuals, this past year has tested us like no other time in recent memory – and the challenges are ongoing. It’s testament to the dedication, commitment and resilience of all our staff, our services and our city that we’ve been able to agree a new business plan and balanced budget for 2021/22 today.
“Helping Edinburgh and our citizens to recover and rebuild after the strains of Covid19 is critical and, as they’ve done throughout, staff in Council services continue to work tirelessly to look after the city and our communities.
“Guided by our business plan priorities of ending poverty, becoming a net zero city and making sure wellbeing and equalities are enhanced for all we’ve agreed a comprehensive package of additional investments as part of our £1 billion-plus 2021/22 budget, channelling extra funding to where it’s most needed and will have the most meaningful impact.
“We want to pay tribute to the outstanding efforts of our residents in helping Edinburgh weather the Covid storm. We have seen communities come together through the hardest of times and they have shown all of what is best about our city. Without the solidarity and resilience of the people of Edinburgh, the financial, social and life cost to our Capital would have been far higher.”
Vice Finance and Resources Convener Councillor Joan Griffiths said: “Everyone’s lives have been up-ended by the Coronavirus pandemic. Jobs have been cut, businesses hit, children’s education disrupted, families separated and, tragically, many, many lives have been lost.
“It’s essential then that we do whatever we can to help our most vulnerable citizens and those who’ve been hardest hit financially, while at the same time making progress with our key ambitions towards a fairer, greener and better-connected Edinburgh.
“Make no mistake, tough times lie ahead and we’re going to have to think creatively and courageously in the years ahead to meet the substantial savings required.
“As we’ve learned during this crisis, however, difficult times can sometimes be a catalyst for lasting, positive change and we’re determined to drive forward our commitments on poverty, cutting carbon emissions and equal opportunities for everyone to access jobs, training and good places to live.
“Our three-year Business Plan responds to this need for change so that our strategies and approach achieve their ambition of making Edinburgh the best possible place to call home.”
The outcome of the Scottish Government’s Local Government Financial Settlement this year has contributed an extra £9 million* to the Council’s budget.
Investment proposals put forward by the SNP/Labour Coalition for the additional £9 million were agreed as follows:
£0.170m to freeze fees and charges of school meals, care at home services, garden aid and library reservation charges and fines;
£0.400m in 2021/22 to expand support and advice to help people at risk of homelessness and support those experiencing homelessness into secure tenancies;
£1.050m to manage crisis needs, increase funding for direct payments in light of COVID, support food security in the City, embed advice across schools and GP surgeries and expand programmes like Discover!, all to help put millions of pounds extra in the pockets of families who need it the most;
£0.500m to support our climate obligations and further decarbonisation of the Council’s estate;
£0.300m to support delivery measures for the sustainability plan which will be published in the summer;
£0.500 million to enhance our parks, playparks, food growing and urban forests, with £4m of related capital investment
£0.250m into setting up a short-term let licensing and enforcement system to move quickly in dealing with the problem;
£2.000m extra to accelerate the 1-to-1 digital strategy to help all our school pupils get the equipment they need for their studies;
£0.110m to strengthen and support our role as corporate parents by expanding the support team;
£0.175m to support expansion of Edinburgh Guarantee in light of the impact COVID has had on jobs;
£0.500m investment to take forward Smart City initiatives; and
£0.052m to extend the role of the Gaelic Development Officer for one year beyond the end of Scottish Government funding.
Further to this, £2.743m has been allocated to the Council’s unallocated reserves as a contingency against future risks.
While the city council expresses satisfaction at setting a balanced budget, there’s no getting away from the fact that Edinburgh is facing another year of swingeing cuts to service provision.
Earlier this week local government umbrella body COSLA spoke out once again about the consequnces of further cuts.
COSLA warned that communities across Scotland will face unavoidable and damaging consequences if Local Government does not receive a fair funding settlement in this year’s Budget
COSLA said that the trend of recent settlements for Local Government needs to change because on top of existing pressures, the COVID pandemic has placed unprecedented strain on the finances of Scotland’s Councils this year.
the costs of COVID-19 to Local Government and the need for these to be met,
flexibility on how the budget allocated to Councils is spent and
an increased budget allocation to address the reduction in funding to Councils over recent settlements.
Speaking as she launched the document on Tuesday, COSLA Resources Spokesperson, Councillor Gail Macgregor, said: “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.”
Echoing these concerns, COSLA President, Councillor Alison Evison, said: “Local Government’s role on behalf of our communities cannot be underestimated anymore. The COVID pandemic has shown exactly how much the public rely on us as leaders and as providers of vital services.
“The reality is that in recent budgets, the Scottish Government has chosen not to provide enough funding for the essential services that communities rely on day in day out.
“On top of this, this year we have had to contend with COVID-19 which has seen the inequality in our society grow.
“Our ability to recover from this and continue to deliver for Scotland’s communities depends on a change of emphasis from Scottish Government that provides fair funding for Council services.
“If we are to truly recover from this pandemic then Local Authorities must receive a fair settlement.”
A jump of 25% in the rat population during 2020 has increased the pest control workload in most areas of the UK, as rats migrate from city centre commercial areas to inner city residential – increasing reports from worried residents about rat sightings.
Reports of rats being seen in open public areas during lockdown are common, with Council pest control departments being sent an increasing number of reports of rats in inner city residential areas as rats migrate in the search for food and shelter.
“Lockdown is presenting a serious challenge for pest controllers, none more so than where financial cuts and social distancing is hampering Local Authority departments in their ability to tackle rat populations. This is not only a funding issue – the population of rats is growing, and the ability to control them with traditional means is decreasing as 74% of UK rats have been shown to carry immunity to popular poisons”, explains Jenny Rathbone of Pest Controller Pest.co.uk
Areas such as Bridgend where Councillor Nicole Burnett, cabinet member for social services and early help reported: “There does seem to be an increase in the rat population in residential areas, particularly residential areas close to town centres.” They have seen an increase of 47% in the reports of rat problems since 2016.
Cardiff is suffering a similar problem, Gill Lewis from Caerphilly County Borough Council stated: “there has been a significant increase in pest control requests since March 2020 because “more people are at home and seeing more pest activity than they usually would”.
“The big problem we face is that residents of more deprived inner-city areas tend to use Local Authority services to treat rodent problems, and it’s these areas rats are moving to during lockdown – any cuts to services will end up impacting the poorest the hardest – and we all know cuts are coming”, Rathbone adds.
UK Rat Population grew 25% last year (Source Pest.co.uk)
2019 – 120m
2020 – 150m
The issues currently affecting the control of the rat population in the UK are:
The first lockdown in March 2020 allowed rats to get a foothold, and breed well. The population increased 25% in 2020 from 120 million to 150 million.
Traditional pest control methods are becoming ineffective as the 2019-20 Campaign for Responsible Rodenticide Use survey of rats showed that 74% of rats in the UK carried a resistance gene to popular rodenticides, and even more worrying in some locations in the UK, 20% have two different genes, making them super resistant (Source)
Pressure on Local Authority Pest Control departments to provide more services, with ever increasing strain on finances.
Pest.co.uk is advising anyone living in inner-city urban areas to take proactive measures before problems start, these include:
Block up holes – Fill any gaps in brickwork, shed doors and any holes on external walls of your home including cellars and attics
Clear cupboards – Empty unused cupboards of bags, clothes, rags and keep them clean
Secure all food sources – Make sure food is not left out, tidy away any open food sources and keep worktops and floors clean of crumbs
Prepare traps – by leaving out rat traps you can pre-empt any future infestation, however it is better to bait with official rat poison than leaving food scraps out
“2021 could be interesting. The longer the lockdown continues, the higher the risk that rats get a real foothold that will be hard to control come summer”, concludes Jenny Rathbone of Pest Controller Pest.co.uk
THIS MORNING, before the City of Edinburgh Council meeting, Another Edinburgh is Possible campaigners held a socially distanced protest at 9am outside the City Chambers to mourn the death of public services, and make the case for a new beginning – properly funded local public services.
In advance of the protest campaigners projected the ‘Another Edinburgh is Possible’ message on City Council, Scottish Government and Westminster Government buildings around Edinburgh.
The Council has already identified over £80m of savings and funding in 2020/21, but has to find at least £5.1m more because of extra costs and lower income resulting from the pandemic. Over the next three years, the Council has identified £40m of savings, but needs to find at least a further£47.5m in savings or service cuts.
The Edinburgh Integration Joint Board, through which the Council and the NHS administer integrated health and social care, has already agreed cuts of £8 million.
Since 2012/13, Edinburgh City Council budget cuts have amounted to £320 million. Year on year cuts – so called savings – have resulted in a hollowing out of jobs and services to Edinburgh residents.
The impact of a decade of cuts
These cuts have had a terrible effect on essential services. The most vulnerable, who have also been hit by cuts in social security benefits, have suffered most. Edinburgh has the lowest expenditure per capita on local services in Scotland.
Covid19 has added to an already bleak picture with increases in unemployment, child poverty and mental distress. The pandemic has shone a harsh light on the gaps in local services and underlined the importance of key workers and health, social care, housing and education.
Another Edinburgh is Possible
Another Edinburgh Is Possible brings together council workers, trade unionists and community activists around a common belief that the cuts need to stop; enough is enough. We argue for local public services that meet local needs. We call on councillors to unite with campaigners to argue the case for properly funded, democratically controlled local public services.
The North Edinburgh and East Edinburgh Save Our Services campaigns are calling an online meeting on Thursday 10th September at 6.30pm. The meeting will discuss how to mobilise opposition to the latest round of cuts in jobs and services.
It is time to end the cycle of cuts to vital local services in our city. Austerity, outsourcing and privatisation has been pushed down from Westminster via Holyrood and implemented by the City Council for too long. But we need a powerful campaign if we are to be successful.
Since 2012/13, Edinburgh City Council budget cuts have amounted to £320 million. Prior to Covid19 the estimate was that there would be further cuts of £87.3 million by 2023.
These cuts have had a terrible effect on essential services. The most vulnerable, who have also been hit by cuts in social security benefits, have suffered most. Edinburgh has the lowest expenditure per capita on local services in Scotland.
The City Council’s press releases fail to reflect the reality of life for many of Edinburgh’s citizens. Wrapped in the language of ‘savings’, ‘inclusion’, ‘progress’, ‘just recovery’ and ‘sustainability’, they accept that there is no alternative to an ideology that supports a relentless increase in inequality.
Covid19 has added to an already bleak picture with increases in unemployment, child poverty and mental distress. The pandemic has shone a harsh light on the gaps in local services and underlined the importance of key workers and health, social care, housing and education.
Edinburgh Council argues that falling revenues and increased costs as a result of Covid19 now mean that further cuts are required. The Edinburgh Integration Joint Board, through which the Council and the NHS administer integrated health and social care, has already agreed cuts of £8 million.
We understand that proposals for cuts will go the Finance Committee on 24th September and be considered at the full Council meeting on 15th October.
These cuts affect individuals, groups and organisations across the city. They will further erode essential services and add to the numbers of unemployed.
The annual cuts in jobs and services that have taken place over the last decade have not gone unopposed. On occasion we’ve been able to deflect specific measures. But each year the screw has tightened.
It is not true that there is no money to fund these services. The Westminster government is choosing to direct it to the big corporations. For example, eleven billion pounds have gone to the private sector for a track and trace system in England that doesn’t work. £600m was handed to Tesco in rate relief (that went straight to their shareholders) while the company is enjoying a sales bonanza.
This meeting can be a first step in building a mass campaign for social justice, push back the cuts and fight for public services.
If our elected politicians wish to truly represent us, then they should join the campaign. If not, they should step aside. Let’s save and rebuild services, save jobs and fight for social justice and an environmentally sustainable future.
“It is unacceptable for families whose worlds have been turned upside by discovering overnight that their school may disappear. It is crucial that parents’ and pupils’ voices are heard before any decisions are taken.” – Green Cllr Clare Miller
Frontline services for Edinburgh’s vulnerable, older and younger residents will be prioritised in the city council’s budget budget set yesterday. Finance convener Alisdair Rankin says the council aims to become a ‘leaner, more agile organisation’ but up to two thousand jobs will go, impacting on services across the city.
The council says spending on schools, health and social care provision – seen as the services that matter most to Edinburgh residents – as well as improvements to roads, pavements and cycle routes, will be their spending priorities, and the administration plans to deliver them more efficiently and effectively.
Councillor Alasdair Rankin, Convener of the Finance and Resources Committee, said: “Like other local authorities around the country, we face the challenge of a rising demand for services while funding is reducing.
“That’s why we will focus on the services that matter the most to the public. I am confident that we have taken the needs of Edinburgh’s residents into account when setting this year’s budget and am delighted that more than 4000 people took the time to have their say on our draft budget proposals.”
Councillor Bill Cook, Vice-Convener of the Finance and Resources Committee, said: “Thanks to the feedback gained during the budget engagement process we have been able to make decisions such as maintaining the full in-house home care service and retaining lunch time crossing patrols at primary schools.”
Based on responses received during an 11-week consultation period, changes were made to the final budget reflecting the public’s needs. These include:
• Maintaining the night noise team
• Deciding against proposals to redesign day care services for adults with learning disabilities
• Removing the proposal to reduce community centre staff
• Maintaining lunch time school crossing patrols
• Amending the proposal to review support staff in special schools
This year the Council has a budget of £950m and will continue to deliver frontline services while making savings of £85.4m. These savings will be achieved through ‘workforce transformation’, cuts in fleet and selling off property.
While councillors listened to the public’s views during the budget consultation there was no move towards introducing a ‘Tourist Tax’ and they rejected appeals to defy the Scottish government by raising council tax. As a result, council tax band levels for Edinburgh in 2016/17 will once again remain unchanged:
A deputation from North Edinburgh was well to the fore during proceedings throughout the day, bringing some levity to what was otherwise a sombre occasion.
Dressed in black, Royston Wardieburn’s Power to the People adult education group staged a funeral procession to the City Chambers, led by the Grim Reaper, an undertaker, pall bearers and mourners lamenting the death of council services.
Drylaw Neighbourhood Centre is one of many voluntary sector organisations facing an uncertain future. A contingent from Drylaw joined the lobby and supporter Lesley Yardley (below, left) spoke to reporters before the meeting about how cuts are affecting hard-hit communities.
She said: “Our Neighbourhood Centre caters for people of all ages – from babies and toddlers right up to people in their nineties. The Centre’s full every day. Pensioners get picked up by our community bus and brought in to the centre. Without that Centre many of these people would be on their own; they would just sit at home and fade away. Communities need community centres.”
The deputation also brought music into the council chamber, with speakers Willie Black and Anna Hutchison – was there ever a more unlikely Renee and Renato? – leading the North Edinburgh chorus in a rousing – if melancholic – version of Bella Ciao.
Ultimately, however, the serenade failed to melt the heart of Edinburgh’s councillors and by late afternoon the die was cast: councillors voted through the Capital Coalition’s budget. Yes, these were some small victories but communities across the city will feel the impact of cuts of this scale. You can’t lose that many jobs without affecting services.
Yesterday’s visit by the Grim Reaper was premature and council services are not dead yet: but with three more years of cuts to come they are surely in a critical condition. Edinburgh’s heady days of ‘Improving Services, Creating Jobs’ are well and truly over.
You can find out more about where the Council plans to spend and save in 2016/17, and where changes have been made following Budget engagement, on the Council website.
More pictures below and on our Facebook page – our thanks to Lynn McCabe
