‘A BUDGET OF MISSED OPPORTUNITIES ON TACKLING POVERTY AND LITTLE FOCUS ON PREVENTION’
COSLA has described the Scottish Government’s Draft Budget as a missed opportunity for the communities of Scotland in relation to tackling poverty.
COSLA also added that Scotland’s Council Leaders, Councillors, the Local Government Workforce and communities should be treated with the respect they deserve demonstrated through investment, not cuts.
COSLA said: “At a special meeting just before Christmas, there was dismay and frustration from Scotland’s Council Leaders about the way Local Government and the communities we represent had been treated in the Scottish Government’s Draft Budget. As the Budget currently stands, communities will see and feel a range of negative impacts.
“COSLA’s ‘Councils are Key’ budget lobbying campaign set out the case for fair funding that would allow Local Government to deliver for the people of Scotland, particularly around tackling poverty, one of the three shared priorities laid out in the Verity House Agreement.
“The response from the Scottish Government to our Budget ask is disappointing and will mean that the potential that councils have to prevent problems occurring will be limited severely.
“Specifically on poverty, the Budget should have had a focus on tackling the root causes of poverty, particularly its impacts on children. This would have needed a greater prioritisation of the work councils do in prevention and early support.
“The essential social supports councils provide in homes, schools, hubs and communities that aim to support and empower people will be further eroded – this has been the case for a number of years now, due to poor Local Government settlements that cut core funding.
“Services that support Local Government to Keep the Promise made to Scotland’s care experienced children and young people like family support and youth work, are under threat as a result of the proposed Scottish budget.
“Tackling poverty in Scotland will continue to be a significant challenge when councils do not have the resources they need to support communities.
“This year’s Budget presented the opportunity prioritise prevention and tackle inequity, to invest in communities and realise our ambitions to end poverty in Scotland.
“It did not deliver. Without a fair settlement for Councils, the poverty gap in Scotland will continue to grow. Investing in Local Government is key to a fairer Scotland.”
“The proposed Council Tax Freeze means that money which could have been invested in tackling poverty upstream – in families, communities and schools – is lost, missing a real opportunity to unlock Councils’ potential.
“COSLA’s President, Vice President and political Group Leaders from all parties have written to the Deputy First Minister and are seeking an urgent meeting.
“Council Leaders will not let this lie, they simply cannot afford to because it will have such a detrimental impact on the communities they represent.”
Delivering the building blocks for Scotland’s future?
More than £5 billion is being invested in building a fair, green and growing economy which creates jobs, supports businesses and helps finance Scotland’s public services and the transition to net zero.
Despite one of the most difficult financial climates since devolution, the Scottish Budget 2024-25 maintains its focus on core priorities and drives forward a government-wide approach to economic transformation.
Measures include allocating £67 million to kickstart a five-year commitment to develop Scotland’s offshore wind supply chain and ensure the country reaps the benefits of the global expansion in wind power. This brings total Scottish public sector support for offshore wind to £87 million next year.
The Budget also boosts annual investment in digital connectivity from £93 million to £140 million in 2024-25, delivering critical infrastructure to enable businesses to innovate and grow while connecting more than 114,000 homes and companies in rural areas to gigabit-capable broadband through the R100 programme.
Since entrepreneurship is at the heart of Scotland’s economic strategy, a further £9 million investment in the Techscalers programme will support the country’s best start-ups with world-class mentoring. The Scottish Government is also prioritising the implementation of Ana Stewart and Mark Logan’s Pathways report, focused on helping more women to start and grow businesses.
The Budget also includes:
putting almost £2.5 billion into public transport to provide viable alternatives to car use, and a further £220 million in active travel to promote walking, wheeling and cycling
providing £358 million to continue accelerating energy efficiency upgrades and installation of clean heating systems
increasing the education and skills budget by £128 million
investing £49 million to promote the re-use of resources and reduce consumption, modernise recycling and decarbonise waste disposal as part of Scotland’s transition to a circular economy
Wellbeing Economy Secretary Neil Gray said: “Our focus is on creating new opportunities for a highly productive, competitive economy, providing thousands of new jobs, embedding innovation and boosting skills.
“We are using all the powers we have to support business and to achieve our ambitious net zero targets. Our strategic investment in offshore wind will stimulate and support private investment in the infrastructure and manufacturing facilities critical to the growth of the sector, and we are delivering a real-terms increase in the education budget to help boost skills and increase productivity. As a priority, we will also consult on options for improving the capacity of local authority planning services.
“Scotland’s finances face a worst-case scenario of underinvestment, which means we must make the difficult choices necessary to focus our limited resources on what will deliver most effectively for people and businesses.
“We’ve seen an Autumn Statement that prioritised a tax cut over investing in public services and infrastructure. The Scottish Government cannot follow this, and has not shied away from taking the tough decisions needed to protect and grow this country’s economy.”
COSLA: Council Tax Freeze is NOT Fully Funded
The Scottish Government has delivered a major blow to communities and has put councils at financial risk with a cash cut to Local Government in its draft Budget (published on 19th December) and no provision for inflation or pay increases, COSLA said.
COSLA Leaders described the draft Budget as not only leaving councils at real and significant financial risk for the coming year, but as it stands, it will mean cuts in every community in Scotland and job losses across Scottish Local Government.
Following a full meeting of Council Leaders yesterday (Thursday) COSLA said that whatever way the Government presents the figures, the reality is that once again the people in our communities have been left at the end of the queue.
That is why we are calling for urgent discussions with Scottish government to ensure a meaningful negotiation on the budget takes place before the final budget is presented to Parliament.
Speaking yesterday afternoon, COSLA’s President Councillor Shona Morrison said: “COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.
“The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.
“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax.
“With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”
COSLA Vice President Steven Heddle said: “Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.
“The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.
“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland. As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services.
“This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives. Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”
COSLA Vice President Councillor Steven Heddle has sent a strong warning to the Scottish Government that any Council Tax Freeze must be fully funded.
COSLA’s message is a response to comments made to the media by Deputy First Minister Shona Robison on Sunday.
Councillor Heddle said: “There were a few things in the comments made by the Deputy First Minister yesterday (Sunday) that I am uncomfortable with on behalf of COSLA, our member councils and the communities that we represent.
“Firstly, the Deputy First Minister cannot decide or unilaterally say that the ‘Council Tax freeze to stay’- it’s up to 32 individual council to decide if they have a council tax freeze or not, not her government.
“Secondly, unless it is funded with additional money for each council that allows them to fund their planned Council Tax increases, then it is not fully funded, and it will be our service users who will suffer as a consequence.
“The funding for the freeze needs to be transparently additional and consolidated into our Budgets for future years.”
“The DFM also mentioned the ‘Changing shape of public sector workforce’. Local Government’s workforce has already changed shape drastically. Between 2006 and 2018, the Local Government workforce reduced by 15% (35,000 FTE) before Scottish Government policies such as Early Learning and Childcare added staff back in from 2019.
“The Scottish Government workforce has nearly doubled since 2006; staffing in non-departmental bodies has also doubled and in Scottish Government agencies, staffing has grown by 15%. These increases have added more than 7,000 FTE staff in just over 15 years.
“The Verity House Agreement was designed to ensure positive working between Scottish Local Government and The Scottish Government, and a focus on better outcomes and person-centred services.
“The VHA has three priorities – to tackle poverty, particularly child poverty; to transform our economy through a just transition to deliver net zero, recognising climate change as one of the biggest threats to communities across Scotland; and deliver sustainable person-centred public services.
Local Government will be unable to contribute to these if underfunded.
“COSLA knows that Scottish Government is under pressure financially around this Budget. However, the Council Tax freeze came out of the blue and has serious financial implications.
“And any suggestions that Local Government’s workforce needs cut further will have serious consequences for communities.”
Alleviating Poverty in Scotland requires investment in Local Government COSLA said today (Monday).
Commenting ahead of the Scottish Budget announcement tomorrow, Councillor Tony Buchanan, COSLA’s Children and Young People Spokesperson said: “If Scotland is to make progress towards alleviating and eradicating poverty, this year’s Scottish Budget must focus on tackling the root causes, with a greater prioritisation of local prevention and early-intervention work – and Councils are key to this.
“This means investment in the essential social supports provided everyday by Councils, in schools, in local community hubs, at the right place, at the right time.
“If the core services aimed at supporting and empowering people to reach their full potential are eroded, as they have been over the last few years as a result of cuts to our core Budgets, then tackling poverty in Scotland will continue to be a significant challenge.
“Action to address poverty and deprivation was noted as a key priority for Scotland in the concluding report on children’s services reform research published by CELCIS last week and reinforces the importance of the shared priority within the Verity House Agreement.
“For too long now, the financial settlement for Local Government has meant that Councils have had to cut spend to services which are needed to tackle poverty – whether they are youth work, social work support or breakfast clubs
This year’s Budget presents the opportunity to reverse this trend, to invest in communities and realise our ambitions to tackle poverty in Scotland.
“Without a fair settlement for Councils in tomorrow’s Budget, the poverty gap in Scotland will continue to grow.
“Investing in Local Government is key to a fairer Scotland.”
Nearly a quarter of Scottish councils warn of effective bankruptcy
EVERY SINGLE COUNCIL plans cuts to services, affecting millions of residents
New research out today from Local Government Information Unit (LGIU) Scotland reveals that nearly a quarter of Scottish councils fear they will not be able to balance their budgets in the 2024/25 financial year.
This is despite the fact that every single council in Scotland plans to cut spending on services in the next financial year, with around two-thirds of respondents cutting spending on education, parks and leisure, and business support.
Alongside planned cuts, nearly all (97%) said that they would be increasing fees and charges, and nine in ten (89%) that they would be spending reserves.
The first annual LGIU State of Local Government Finance in Scotland survey, found more than three quarters of respondents (76%) believe these cuts will be evident to the public.
Had it not been for the Scottish Government decision to unilaterally declare a council tax freeze, every council would have raised council tax, most often by a significant amount. The proposed council tax freeze has contributed to an increasingly poor relationship between Scottish Government and local government.
The current state of the economy, manifested in high rates of inflation, affects wages, utilities and food, thus making service provision even more expensive for councils and was considered to be a problem by every respondent who answered. The associated cost of living crisis – which puts additional demand on services – was also considered to be a problem by over 90% of respondents.
There was widespread agreement on the most pressing issues in council finances: in addition to inflation, ring-fencing, staff recruitment, cost of living crisis and pressures linked to demographic change were all considered to be problems by more than 90% of respondents.
Adult social care and children’s services were considered the greatest shortest-term pressures on council finances, and adult social care by far the greatest long-term pressure.
Jonathan Carr-West, Chief Executive, LGIU Scotland,said: “Councils in Scotland are raising a red flag that council finances are completely unsustainable. With nearly a quarter of councils warning they may be unable to fulfil their statutory duties, it is only a matter of time before we see the first council in Scotland declare effective bankruptcy.
“Councils are pulling every lever available to them to balance their books. Every respondent said they were cutting spending on services, 97% that they would be increasing fees and charges, 89% that they would be spending reserves. But it is not enough. Councils have little to no confidence in local government finance and the issues behind the crisis are not going away.
“Scottish Government must work productively with councils to restore trust, remove ring fencing, identify revenue streams and reform core funding for councils to ensure residents, and particularly the most vulnerable in communities, are able to access the services they need and pay for.”
Inspections carried out by local authorities have shown that, at present, there are 16 council areas which have identified schools as containing Reinforced Autoclaved Aerated Concrete (RAAC).
Local authorities have responsibility to ensure schools are safe for pupils, staff and all their users, and are carrying out inspections of school buildings to identify the presence of RAAC. Ministers have been clear to local authorities that those must be carried out as a matter of the highest priority and have offered assistance to councils in the matter where appropriate.
Where RAAC has been identified, Councils have assured the Scottish Government that mitigations are in place in accordance with guidance from the Institution of Structural Engineers.
The schools currently impacted are in the following council areas:
Aberdeen City
Aberdeenshire
Argyll and Bute
City of Edinburgh
Dumfries and Galloway
Dundee City
East Ayrshire
East Lothian
Glasgow City
Highland
Inverclyde
Moray
North Ayrshire
North Lanarkshire
Perth and Kinross
West Lothian
Education Secretary Jenny Gilruth said: “The Scottish Government has been actively engaging with local authority partners, who have statutory responsibility for school buildings in Scotland, for some time.
“It is important that there is transparency around the schools where RAAC has been identified and mitigations in place. Local authorities were asked to publish by today the data relating to impacted schools in their area given the seriousness of this issue and to ensure this data is freely available.
“I hope this provides reassurance to parents, carers, staff and pupils who may be concerned about the presence of RAAC in their learning facilities. I also expect the local authorities still to publish to do so as a matter of urgency.
“Currently half of Scotland’s local authorities have identified RAAC in schools. COSLA has confirmed that safety is their central consideration and that there is robust guidance that is followed by every local authority to ensure that those buildings are safe to be in for pupils, staff and the public.
“This is in line with the existing guidance from the Institution of Structural Engineers who have advised us they do not believe there is sufficient grounds to update their advice.”
EDINBURGH REPORT:
Reinforced autoclaved aerated concrete (RAAC) is a lightweight construction material that was used in the construction of some public buildings between the 1950s and 1990s. It was mostly used mostly in flat roofing. Despite its name, it is very different to traditional concrete. It is aerated, or ‘bubbly’, and is therefore less durable than traditional concrete.
RAAC can be susceptible to failure when exposed to moisture. As a result UK Government has issued guidance to organisations across the UK to carry out check buildings where RAAC may have been used.
Since April 2023, we have been inspecting our schools to check for RAAC. The work is being carried out in line with UK Government advice. We have contracted independent structural engineers to do the surveys.
No schools have had to close as a result of RAAC.
These are the schools affected and the mitigations that are in place (as at 8 September 2023):
Colinton Primary School – no impact on the school
Cramond Primary School – one classroom block is closed, temporary classroom units on site
Currie Community High School – access still available to dining hall, old gym block, assembly hall and an art classroom are closed. Newer gym block still in use, some gym classes taking place outdoors
Fox Covert/St Andrew’s RC Primary School – gym hall/dining hall closed but likely to re-open after remedial works; kitchen closed for longer term
Lorne Primary School – top floor currently closed while assessment takes place; classes relocated within the school.
Pentland Primary School – four classrooms, kitchen and supporting areas not in use; numbers restricted in dining hall
Trinity Academy – swimming pool, no impact as building has been closed since 2014
Trinity Primary School – a classroom area and kitchen not in use; temporary classrooms on site.
Councils have new powers to reduce the negative impact of fireworks
From today (Thursday June 22), councils can designate Firework Control Zones that would make it a criminal offence to ignite a firework, or knowingly throw a lit firework in a zone which can include private properties or gardens.
The maximum penalties are a fine of up to £5,000 or up to six months in prison.
Organised public firework displays will still be permitted within Zones to allow people to enjoy fireworks safely.
The provisions are one of the key measures from the Fireworks and Pyrotechnics Articles (Scotland) Act 2022.
Minister for Victims and Community Safety, Siobhian Brown said: “Evidence and engagement with communities shows strong public support for tougher action on fireworks, which along with other pyrotechnic articles can cause harm, serious injury and distress to people, pets and the wider community.
“Giving local authorities additional powers to create Firework Control Zones, with input from the local community, marks a significant step in tackling the issues caused by fireworks, which are dangerous when used inappropriately.
“This change to the law demonstrates our absolute commitment to further improve public safety and wellbeing for our communities.”
Police Scotland Chief Inspector Nicola Robison said: “Fireworks Control Zones allow local authorities the power to designate areas where fireworks cannot be possessed or set off and ultimately restricts the improper use of such items in Scotland.
“It is a criminal offence to be in possession of, or setting off, fireworks within a Fireworks Control Zone and I would urge all members of the public to be aware of designated zones within your local area to ensure you are not in breach of the legislation.
“Police Scotland is committed to keeping the public safe from the risk of harm associated with the reckless and criminal use of fireworks and we welcome the addition of Fireworks Control Zones within Scotland.”
Review Group member, and Director of Innovation and Strategic Relations at the Scottish SPCA, Gilly Mendes Ferreira said: “We warmly welcome introduction of Firework Control Zones.
“The restrictions are much needed to prevent unnecessary suffering among pets, farm animals and wildlife.
“They will help to alleviate distress caused by fireworks and also prevent any firework debris that can be harmful to, or ingested by, animals.”
Ukrainians in the UK will be helped into their own homes as part of a £150 million funding allocation.
The funding will be divided across the UK according to the number of Ukrainians in each nation: c.£109 million for England, c.£30 million for Scotland, c.£8 million for Wales and around c.£2 million to Northern Ireland.
Funding can be used by councils to help Ukrainian families into the private rental sector, help them get jobs, and continue sponsorship for guests’ second year in the UK.
Local authorities are best placed to understand the support needed for local communities and, within England, this funding will be used to help people remain in their current accommodation or find alternative housing, including in the private rented sector.
The Homes for Ukraine scheme has welcomed over 124,000 Ukrainians to the UK, with almost half of working-age nationals now in employment and settled into their local areas, having had the right to work, receive benefits and access public services from day one.
The Department for Transport has also announced it will extend the length of time Ukrainian refugees can drive in the UK on their home country driving licence, from one year to three, in a move that will help many continue the lives and jobs they have forged since arriving here.
Minister for Housing and Homelessness, Felicity Buchan said: “The UK has an honourable tradition of offering shelter to those fleeing the horrors of war. Thanks to the extraordinary generosity of hosts in this country, over 124,000 Ukrainians have now found safety in the UK.
“Sadly, the fighting in Ukraine shows no sign of ending soon, so we are appealing for more people to become hosts while providing councils with this additional funding to support guests into long-term housing.”
Petro Rewko from The Association of Ukrainians in Great Britain said: “Ukrainians everywhere are grateful to the government and the British people for opening their homes and hearts to Ukrainians fleeing their homes as a result of Russia’s illegal invasion of Ukraine.
“We welcome today’s announcement, which recognises the commitment of sponsors and local authorities during difficult economic times and will provide additional support and reassurance to Ukrainian families as they rebuild their lives and seek to overcome the trauma of war.”
The UK government will continue to work with the Ukrainian government, the devolved administrations, local authorities and charities and voluntary groups to support guests and sponsors under the Homes for Ukraine Scheme.
The government is keen to ensure that Ukrainian guests receive the support they are entitled to while they are in the UK, and are helped into employment and long-term suitable accommodation, as soon as possible.
Hosts in the UK will continue to receive a monthly £350 thank-you payment during guests’ first 12 months, rising to £500 a month during the following 12 months.
Emergency measures to protect tenants during the cost of living crisis, including the private rent cap and additional eviction protections, will be extended for a further six months if approved by Parliament.
Tenants’ Rights Minister Patrick Harvie has confirmed proposals to keep the Cost of Living (Tenant Protection) Act measures in place until 31 March 2024 at the latest. This would mean:
Most in-tenancy private rent increases would continue to be capped at 3%
Alternatively, private landlords could apply for increases of up to 6% to help cover certain increases in costs in a specified time period where these costs can be evidenced
Enforcement of evictions would continue to be paused for six months for most tenants, except in a number of specified circumstances
Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable
Social rented sector tenants are protected by the voluntary agreement reached with social landlords on below-inflation rent increases for this financial year.
Mr Harvie said: “As the cost of living crisis continues, these measures are giving important support to tenants, providing them with much-needed stability in their housing costs and additional eviction protections.
“As the social housing sector have agreed their rents in consultation with their tenants, the focus of this temporary legislation is on providing private renters with similar protection. We know some landlords are impacted by rising costs too.
“The option of increasing rents by 6% in specified circumstances ensures landlords who may be impacted by the cost of living crisis can recover some increased costs associated with their let property.
“The final date of 31 March 2024 would be as long as the rent cap and eviction protections could run if approved by Parliament. The necessity of these measures is being kept under review and we will continue to assess whether they remain justified, balanced and proportionate based on the financial pressures rented households and landlords are facing.
“We are also looking at how to transition out of the emergency measures, and we continue to listen to and work hard with stakeholders to develop and deliver rental sector reform.”
Scotland’s councils must radically change how they operate – particularly how they collaborate with partners – if they are to improve and maintain services to their communities.
Councils worked well with their partners to address the impacts of Covid-19. They need to implement the lessons learned during the pandemic in order to now cope with reducing budgets, growing demographic and workforce pressures, and declining performance across some services.
The Scottish Government and COSLA urgently need to finalise the planned ‘New Deal’ settlement for local government, allowing for more long-term planning, flexibility and transparency in councils’ budgeting process.
Currently, an increasing proportion of funding is ringfenced for national priorities; this constrains councils from making decisions about how to best use money to address the local needs of their citizens and communities.
Councils must now rethink how they work together, and with local partners and communities, to provide financially sustainable services whilst tackling national issues such as climate change, child poverty and inequalities. Few councils provide services jointly or share support services across different councils.
Councils also need better data in order to ensure that they can demonstrate that their services are meeting their citizen’s needs.
Tim McKay, Acting Chair of the Accounts Commission said: “The New Deal for local government, agreed between the Scottish Government and COSLA, is long overdue. Putting this in place will give councils longer-term financial stability, supporting them to make decisions and make the fundamental changes that are urgently needed.
“Councils have gone beyond the point where making savings is enough. If the change needed doesn’t happen now, some services will continue to get worse or deeper cuts will be made. This will impact communities and individuals that are already at crisis point with the effects of inequality and persistently high poverty.
“Councils need to have open and honest conversations with their communities and staff about the future of council services.”
COSLA President Shona Morrison has said that Councils are already at the forefront of service provision and are probably the most transformative and collaborative part of the public sector in Scotland.
The COSLA President also called on other parts of the public sector to be as radical and transformative as Scottish Local Government and praised how well Scottish Local Government collaborates with partners in particular.
Commenting yesterday (Wednesday) in response to the Accounts Commission Overview Report, Councillor Morrison said: “As today’s report recognises, Councils worked well with their partners to address the impacts of Covid-19.
“The report also recognises the huge challenges Councils face due to budget constraints, increased cost pressures and demand, and increases in directed and ringfenced funding. As we have all seen, increasingly difficult choices are required about spending priorities and service provision given reducing budgets coupled with growing demographic and workforce pressures.”
Councillor Morrison added: “In addition, we are working with the Scottish Government on a ‘New Deal’ for Local Government, which will enable more long-term planning, more transparency in the budget setting process and a reduction in ring fenced funding for national priorities which constrains councils from making decisions about how to best use money to address the needs of their local communities.”
She concluded: “Only on Monday of this week, in our response to the Finance and Public Administration Committee’s call for views on public service reform, we highlighted the significant efficiencies and reforms that councils across Scotland have already made in response to successive real-terms cuts to core funding for over a decade.
“We also welcomed the Scottish Government’s renewed commitment to work collaboratively with Local Government to deliver on shared priorities, including tackling child poverty and achieving a just transition to net zero.
“Today’s report from the Accounts Commission and our response to the Finance and Public Administration Committee deliver exactly the same message. Councils are uniquely placed to be the key partner in the Scottish Government’s public service reform programme and should be further empowered to better support local service delivery.”
