‘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.”

Accounts Commission: Rising charges and reduced spending impacting council culture and leisure 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.”

ICO takes action to improve access to personal information from local authorities across Scotland

  • 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. 

The ICO has committed to improving the support it provides to both people who grew up in the care system across the UK and the organisations that hold their information. It has been gathering evidence of the challenges facing both people and organisations when it comes to accessing care records and will share its findings and next steps over the coming months.  

Read more detail about the ICO’s work with local authorities in Scotland here

Find out more about your information rights here, including the right of access.