COSLA: Local Services Cannot Take More Cuts

COSLA launches Budget Lobbying Campaign

Scotland’s councils have warned that vital local services are at risk without a fairer funding settlement, after making around £5 billion of savings since 2010-11 and facing a further £529 million funding gap in 2026-27.

Councils deliver the services people rely on every day, from educating more than 700,000 pupils, to supporting almost 98,000 people with care at home, maintaining 54,000 kilometres of roads, tackling homelessness and supporting vulnerable families.

With years of efficiencies and service redesign, councils say there is little left to cut. Spending on culture and leisure has already fallen by 26% in real terms since 2010-11, while corporate support spending has reduced by 25%. At the same time, demand for services and inflation continue to rise.

COSLA’s concerns are backed by several independent organisations.

The Accounts Commission has warned that council funding is failing to keep pace with rising costs and demand, while the Joseph Rowntree Foundation continues to highlight the growing levels of poverty and hardship driving demand for local support.

Together, the evidence paints a clear picture: communities need stronger local services at precisely the moment councils are under the greatest financial strain.

COSLA Resources Spokesperson Kelly Parry said: “There is little left to cut without communities feeling the impact. Councils have already delivered billions in savings while continuing to provide the services people rely on every day.

“Local services are the foundation of strong communities. If Scotland wants high-quality schools, social care, roads and local support services, councils must be given the resources to deliver them.

“The choice is clear: either we invest in local services or we accept their decline. Communities across Scotland deserve better than that.”

COSLA is calling for increased investment in local government, including support to meet growing social care demands, inflation-proofed funding, greater local flexibility and multi-year settlements that allow councils to plan effectively for the future.

“Strong communities need strong councils. If Scotland wants high-quality local services, local government must be properly funded to deliver them.”

Read our budget lobbying document here.

We Don’t Trust You!

Publication of Trust in Public Institutions (2025): Findings from the Scottish Household Survey

The Scottish Household Survey: Trust in Public Institutions (2025): Findings from the Scottish Household Survey report, published yesterday, contains key findings for the survey question on trust in public institutions in Scotland.

In 2025, adults in Scotland were most likely to trust the Health System and the Police (both 74%). Trust was lowest for the Scottish Government (46%) and Local Government (50%).

The Scottish Government (45%) and Local Government (41%) attracted the highest levels of distrust in 2025, while distrust was lowest for the Police (19%), the Education System (20%) and the Civil Service (22%). Compared with 2023, distrust increased most for Local Government (from 35% to 41%) and the Health System (from 18% to 24%).

‘Net trust’ is the difference between the percentage of people who expressed trust in an institution, and those who expressed distrust. More adults expressed trust than distrust in six of the seven institutions.

The Police had the highest net trust (+54 percentage points), with 74% of adults expressing trust and 19% expressing distrust.

Net trust in the Scottish Government was neutral, with equal proportions of adults expressing trust and distrust.

Trust varied across population groups. Adults aged 16 to 34 generally reported higher levels of trust than adults in the older age groups, while disabled adults reported lower trust and higher distrust than non-disabled adults across all institutions.

Trust was also generally higher among minority ethnic groups and lower among adults living in the most deprived areas. Differences by sex and urban-rural classification were less pronounced.

Trust in all seven institutions was lower in 2025 than in 2022, with the largest declines for the Scottish Government and Local Government (both down nine percentage points).

Changes in trust since 2023 were generally smaller than those seen earlier in the period, with trust levels increasing slightly for the Justice system and remaining stable for four of the seven institutions (the Police, Scottish Government, Civil Service and Education system) – suggesting that the decline in trust may be stabilising.

Over the 2023 to 2025 time period, however, distrust increased for most institutions and fewer adults selected “don’t know”, indicating that views may have become more defined over time.

The Trust in Public Institutions (2025): Findings from the Scottish Household Survey report provides key findings relating to Trust in Public Institutions in Scotland from the Scottish Household Survey.

‘Intense engagement’ shaping Scotland’s public sector reform

IMPROVING SERVICES?

A period of intense engagement is underway to ensure streamlined public services are delivered for Scotland, Public Service Reform Secretary Ivan McKee has said.

This week’s Programme for Government set out how the Scottish Government plans to deliver stronger and efficient public services that are sustainable for generations to come.

Plans include replacing the current 14 territorial health boards with two strategic health boards, removing unnecessary duplication and overlap in public services and seeking a clear shared direction on substantial reform to local governance, including social care.

Mr McKee said: “Public service reform is at the heart of this Government’s priorities for the next five years and this work will help to ensure that every pound of investment is focused on frontline delivery, with the right staff in the right roles to deliver real improvements in public services.

“I will meet public sector leaders and other key partners at the Public Service Reform Summit later this month to discuss the challenges and opportunities posed by public service reform and the agenda set-out in the Programme for Government.

“My colleagues and I are also engaged in intensive dialogue with public bodies, NHS Boards, local government, trade unions, the third sector, businesses and communities to strengthen the work that is already taking place and to ensure that proactive leadership and collaboration are central to our approach.

“Our focus over the coming months is to build a shared understanding of how we will deliver the changes necessary to support the needs of diverse communities across Scotland.”

COSLA President, Councillor Shona Morrison, has responded to Scottish Government’s Programme for Government plans: “The Programme for Government is a significant statement of the Scottish Government’s priorities, and we will take time to consider its detail carefully.

“There are important implications for local government and council services, particularly the proposed NHS reforms and what they will mean for the future delivery of social care.

“Over the coming days, COSLA will engage closely with our member councils and with Scottish Ministers to ensure these proposals are focused on what is best for communities across Scotland and respect the democratic legitimacy of local government.

“Public services work best when decisions are taken as close to communities as possible. We look forward to meaningful engagement with the Scottish Government and believe that the dialogue on the future of local governance must be carried forward with councils and COSLA as the collective voice of local government.”

STUC: Programme for Government ‘reckless rather than revolutionary’

Commenting on the Programme for Government, STUC General Secretary Roz Foyer said: “Presenting the public with a misleading choice of cuts packaged as public service reform was disingenuous at best and a falsehood at worst from the Scottish Government.

“Crushing down Scotland’s health boards into two may seem bold on paper but further centralising power when local communities are crying out for health and social care services tailored to their needs seems more reckless than revolutionary.

“This is not the way to do public sector reform. Before the axe is swung on any public service, whether health, council or social care, Scottish Government ministers would do well to engage meaningfully and purposefully with the workers who deliver on the ground.  This cannot be done in the timescales outlined. 

“Measures on food cap prices, childcare, breakfast clubs and bus fare caps are welcome. However, by avoiding the big decisions on wealth redistribution – on council tax reform, wealth taxes and taking national stakes in our energy infrastructure – cost of living measures will always fall short of the radical transformation both our economy and communities require.

“We will be engaging actively with Government on its promise to bring forward a responsible strategy for data centres in Scotland. We need to take stock of how such projects can benefit decent jobs, workers and the communities in which they will reside. We need to move away from industrial strategy that allows our heavy industry, manufacturing and renewables sectors to be sold off to the highest bidders with little public benefit in return.

“Finally, it’s deeply welcome the First Minister has pledged further support for survivors of gender-based violence. It’s time that all organisations, employers and society as a whole adopts a zero-tolerance approach to violence against women and girls and it’s correct that this is a strategic priority for the Scottish Government in which the First Minister will find support from Scotland’s trade unions.”

Programme for Government 2026 to 2031 – gov.scot

Swinney: “No child should start the school day hungry”

Investing in free breakfast clubs

Local authorities will share £15 million to expand and enhance breakfast club provision from today, First Minister John Swinney has announced.

The funding will help councils deliver free breakfast clubs for primary school pupils across Scotland from August 2027, giving children a healthy start to the school day and helping reduce costs for families.

The announcement follows the opening of new breakfast clubs in East Lothian, at East Linton and in Letham Mains, during the Government’s first 100 days in office, delivering on a commitment to expand access.

Ahead of a visit to a breakfast club in East Lothian the First Minister said: “No child should start the school day hungry.

“I have seen first-hand the real impact and benefits that the breakfast clubs provide to pupils, parents and teachers. They give children a healthy start to the day, helping to ensure they are ready to engage and learn in class.

“For parents and carers, breakfast clubs allow for an early drop off at school while easing the pressure on family budgets at a time when rising bills and living costs continue to bite.

“The Scottish Government is continuing to do all it can to eradicate child poverty and put more money in people’s pockets. Alongside measures such as free school meals, these free breakfast clubs will help ensure more children are supported to succeed at school, regardless of their background.”

COSLA Spokesperson for Children and Young People, Councillor Tony Buchanan, said: “Local authorities deliver a wide range of services for children and families and are best placed to understand and respond to the needs of their communities.

“This agreement provides an opportunity for local authorities to expand and enhance breakfast provision in a way which meets local need. I look forward to continuing to work together to support our children, young people, and families across Scotland.”

Further measures to eradicate child poverty will be set out by the First Minister in his Programme for Government tomorrow (Tuesday).

COSLA calls for clarity over severance scheme for councillors

COSLA has responded to the Scottish Government’s decision not to proceed with a consultation and legislation for a severance scheme for councillors:

The COSLA President has written to the Deputy First Minister to express COSLA’s ‘profound disappointment’ in the Government’s position that a severance scheme for elected members cannot be implemented ahead of the 2027 local government election.

Commenting on the Government’s decision not to proceed with a consultation and legislation, Cllr Morrison said: “The Scottish Government’s position represents a significant departure from the expectation created by the Scottish Local Authorities Renumeration Committee (SLARC) recommendation and by the Scottish Government’s own acceptance of the recommendation.

“COSLA is clear that a severance scheme for elected members, which would bring councillors in line with what is already available for MSPs and MPs, is a key part of removing barriers to elected office and increasing the diversity and representation of local government.

“COSLA remains committed to delivering the SLARC recommendations, which includes severance, and working constructively with the Scottish Government to deliver this important reform.

“Scotland’s councillors now require a formal commitment by the Scottish Government detailing how they will take forward this recommendation in future.

“Such clarity would help provide reassurance regarding the Government’s continuing commitment to strengthening local democracy and removing barriers to elected office.”

COSLA speaks out against online abuse as councils set budgets

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 warns Scottish Budget falls short for local government

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.

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 £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.”