COSLA President, Councillor Shona Morrison, has released the following statement:
“COSLA is concerned to see increasing levels of toxic online behaviour and abuse directed towards Scotland’s elected members, particularly in the wake of Councils setting their budgets and council tax levels for the year.
“Councillors across Scotland are dedicated public servants carrying out their democratic duties on behalf of their communities. They deserve to do so free from intimidation, harassment, or personal attack.
“Budget decisions are taken locally, transparently, and with great care by councillors who have their communities’ best interests at heart and who work tirelessly to protect essential local services under financial constraint.
“Public debate and scrutiny are vital components of our democracy but abuse, intimidation, and targeted harassment have no place in that discussion.
“COSLA urges all individuals and organisations to engage respectfully, and to recognise that councillors are making incredibly difficult decisions as they work to safeguard essential local services within a national funding landscape that remains extremely challenging.
“In a world that feels increasingly fractured, building trust in our democracy is rooted in how we treat each other and to that end we welcome robust and open debate and discussion while remaining respectful.”
Edinburgh’s Budget Meeting will take place on Thursday (26 February).
COSLA has set out concerns about the Scottish Government’s Budget settlement for Local Government, warning that while there is a modest increase in uncommitted revenue, the settlement remains insufficient to meet rising demand for essential local services.
Following a meeting of council leaders, it was stressed that the increase of £234 million in uncommitted revenue funding for 2026/27 does not address the scale of pressures facing councils, particularly in social care where demand and complexity continue to rise sharply.
COSLA also highlighted urgent concerns about the continued underfunding of the Real Living Wage policy.
While welcoming the increase in funding for the Affordable Housing Supply Programme, COSLA warned that the capital funding position for local government is becoming increasingly unsustainable, threatening councils’ ability to invest in vital infrastructure and community assets.
Leaders also expressed significant concern about the medium-term outlook set out in the Spending Review, which suggests continued de-prioritisation of local government and further real-terms cuts over the coming years.
Cllr Ricky Bell, COSLA Spokesperson for Resources, said:“While we acknowledge the increase in uncommitted revenue funding for 2026/27, this settlement falls far short of what is needed to sustain essential local services. Councils are facing acute and growing pressures, particularly in social care, and the current level of funding simply does not reflect the scale or complexity of demand.
“We are especially concerned by the continued underfunding of the Real Living Wage across portfolios including social care. COSLA made a clear and urgent ask for significant additional investment of £750m to protect and strengthen social care, which the Budget as announced fails to deliver.
“Further to this, the medium-term outlook paints a worrying picture for local government, with continued de-prioritisation and the prospect of significant real-terms cuts.
“If councils are to continue delivering for communities, we are calling for urgent and meaningful engagement with the Scottish Government to ensure local government is properly funded to continue delivering the essential services communities rely on every day.”
COSLA reiterated its support for the introduction of additional council tax bands as an interim step towards fundamental reform, emphasising that any changes must be taken forward in close cooperation with COSLA and local government.
In addition, it welcomed the Scottish Government’s forthcoming legislation to remove the cap on council tax premiums for second and empty homes, describing it as a positive step in providing councils with greater local flexibility.
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 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.”
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.”
Councils are spending less on culture and leisure services, reviewing the services they offer and increasing or introducing charges. Yet gaps in the data collected at a local and national level means we don’t have a full understanding of the impact of these decisions on health, wellbeing and prevention.
Scotland’s councils play a vital role in supporting communities by delivering a wide range of cultural and leisure services. These services aim to keep communities healthy and connected, improving residents’ quality of life. The level of services offered, and how they are provided, is a decision for individual councils.
Whilst councils are spending more on services overall, spending on culture and leisure services reduced by three per cent in real terms in the five years from 2018/19. At the same time income from charges increased by 27 per cent, whilst overall satisfaction and attendance rates for some services remain below pre-pandemic levels.
Removing these important services risks increasing inequalities and exclusion, with rural and more deprived communities having a greater reliance on these facilities. Failure to adequately consult with communities and assess the equalities impacts of service changes has led to some councils reversing decisions and communities taking legal action.
Jo Armstrong, Chair of the Accounts Commission, said: “Culture and leisure services are vital to our health and wellbeing, supporting national and local priorities and supporting people to be better connected. Gaps in national data need to be addressed to better understand how these reductions in spending on culture and leisure are impacting communities.
“As councils manage continued pressures due to increasing demands and costs, culture and leisure services have experienced a disproportionate share of council savings measures.
“Communities must be fully consulted on decisions to close, centralise facilities or changes to charging. Failing to do this risks deepening inequalities and legal action by communities.”
Reprimands issued to Glasgow City Council and City of Edinburgh Council for failing to respond to requests for personal information on time
Action follows ICO engagement with local authorities across Scotland to improve right of access, including for people with care experience and those applying for redress after suffering abuse while in care
“Those who were let down in the past are being let down again, this time by poor SAR compliance.”
The Information Commissioner’s Office (ICO) is taking action to tackle significant delays for people who are trying to access copies of their personal information held by local authorities across Scotland.
Under data protection law, people have the right to ask an organisation if it holds their personal information and receive a copy of any personal information held within a month, unless an extension is applied – this is known as a subject access request (SAR).
The regulator has now reprimanded both Glasgow City Council and City of Edinburgh Council for repeatedly failing to respond to SARs within the legal timeframe, leading to a significant backlog of requests.
The reprimands follow the ICO’s proactive engagement with all 32 local authorities in Scotland after it became aware of delays in responses to SARs, amounting to years in some cases.
Many local authorities have seen an increase in SARs received, many in relation to the Redress Scotland scheme where people who suffered abuse while in care can apply for redress using supporting documents such as their care records.
Jenny Brotchie, Acting Head of Scottish Affairs at the ICO, said:“Those who were let down in the past are being let down again, this time by poor SAR compliance.
“We have heard how undue delays and lack of communication from local authorities can cause further distress for people, including those with care experience and those trying to claim redress in Scotland.
“Local authorities must get this right despite the rising numbers of requests, which is why we have been offering support and monitoring those with poor compliance until we are satisfied that improvements have been made.”
Following the ICO’s scrutiny and support to put action plans in place, many local authorities have significantly reduced their backlog of requests and improved their response times.
Despite a 67% overall increase in the total number of SARs to local authorities in Scotland between 2021 and 2024, 75% of local authorities improved their SAR compliance, with 13 local authorities reporting a compliance rate of 90% in 2023/24.
However, the regulator launched investigations into two local authorities, Glasgow City Council and City of Edinburgh Council, after it did not see any tangible improvements over 12 months.
The ICO’s recent compulsory audit of Glasgow City Council found that the council has good policies and procedures in place to handle SARs. However, lack of resource and budget remains an issue, with the council still unable to respond to many SARs within the legal timeframe.
Following its reprimand, City of Edinburgh Council has now reported some improvement in its response times.
Jenny Brotchie added:“While I’m pleased to see significant improvements from most of the local authorities that we engaged with, SAR compliance in Scotland remains a concern and we must ensure people can exercise their information rights effectively and without further harm.
“We expect all local authorities to have sufficient resources in place to handle the volume and complexity of SARs, and to keep people updated on the progress of their request.
“We are taking a proportionate approach to monitoring local authorities, but these reprimands show that we will not hesitate to take enforcement action where necessary.”
Looking forward, the ICO continues to engage with local authorities and other key stakeholders to drive further improvements and ensure that people can access their own personal information.
COSLA is clear that the proposed funding from Scottish Government won’t cover additional Employers National Insurance costs, and councils still face an extremely challenging financial position as they set their budgets.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented: “We note that the Scottish Government has announced it will fund £144m of the additional direct staffing costs that will result from the UK Government’s policy decision rise to Employers National Insurance. However, this leaves a gap of £96 million Councils will still need to fill within their budgets.
“While we acknowledge that the UK government is still to announce additional resources, it is important to note that there has been no additional funding for commissioned services, the biggest of these being adult social care, which are also vital services and will see significant impacts.
“Given the mounting challenges for local government, this additional funding will not solve the crises councils and communities are facing, which are exacerbated by the Employers National Insurance increase.
“Difficult decisions will still need to be made as councils look to protect essential frontline services.”
Scotland’s councils continue to face severe financial pressures. The need to consult with communities, clearly communicate the impact on local services, whilst working together to shape and deliver urgently needed transformation, is more important than ever.
Councils closed a budget gap of £759 million during 2023/24, but this required them to make further and deeper savings.
Reflecting on the state of council finances in that financial year, the Accounts Commission reports many councils made savings or used reserves to deliver services within budget and offset a 3.3% real-terms reduction in revenue and income.
Using reserves to routinely balance budgets isn’t sustainable and risks financial sustainability.
Despite an overall increase in funding in 2024/25 and a further funding increase announced for the year ahead, intensifying demand for services, greater borrowing and depleting reserves pose ongoing challenges.
In 2023/24 councils borrowed more to invest in buildings and infrastructure, whilst Scottish Government money to support capital investment continued to decline. Council borrowing increased by over £400 million and almost all councils now face higher levels of debt and annual interest costs.
This investment is vital, however, in supporting spending on key areas including new schools and housing projects, whilst reducing the risk of buildings becoming unusable and impacting services still further.
Jo Armstrong, Chair of the Accounts Commission, said: “Scotland’s councils face a challenging future, with significant financial risks and uncertainties.
“This has been compounded by pressures out with their control, including ever-increasing demand on services and inflation. An expected increase in funding for the year ahead doesn’t cancel out the urgent need for transformation, at a pace and depth we’ve not yet seen.
“With services already being impacted, councils must be clear with communities the scale of financial challenge being faced. Working with communities to deliver differently is vital.”
Finance Secretary calls for clarity as local authorities set their budgets
The employer National Insurance increase must be fully funded to ensure local authorities have the resources they need to serve their communities, Finance Secretary Shona Robison has said.
Ahead of an appearance before the local government committee next week, Ms Robison again called on the UK Government to provide urgent clarity over the funding to help the Scottish Government and local authorities finalise their budgets.
The Finance Secretary said: “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer National Insurance Contributions.
“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short.
“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.
“We know local authorities are already under significant financial pressure. This will only continue to build unless the UK Government reimburses us in full for their tax increase. Councils are in the process of setting their Budgets now, so the sooner we have clarity over this issue the better – this is needed urgently.
“The Scottish Government will continue to work closely with COSLA to press the UK Government to provide the funding needed to support public services in Scotland.”
The First Minister and President of COSLA wrote to the Chancellor on 3 January, supported by 48 public and voluntary sector organisations to raise concerns at the impact of the increase to employer National Insurance contributions and to seek clarity on funding.
