COSLA: Scottish Government budget settlement simply not good enough

‘FUNDING REALITY IS A REAL-TERMS CUT’

Local Government spending decisions are being increasingly directed by Scottish Government, and the way Local Government finances are presented by Scottish Government is potentially confusing for the general public.

This can lead to raised expectations and lack of clarity in our communities about the reality of what is now possible to deliver on the ground, COSLA said today (Monday 16th January).

COSLA was clear that this year we needed and asked for a £1bn extra in real terms however we have ended up with £38million and that this was simply not good enough.

COSLA added that to avoid socially harmful cuts, the finances of Local Government need early and proactive discussions to avoid an annual public argument about the reality of what can and cannot be afforded by Councils.

Councils also need more freedom to address local priorities and the ability to focus on improving outcomes.

Commenting today, COSLA’s Resources Spokesperson Councillor Katie Hagmann said:  “Given the significance of our council services to the lives and livelihoods of everyone across Scotland, communities deserve clear and consistent facts in relation to Local Government finance rather than a yearly debate on how much money is or is not available.  

“All our communities are concerned about is the level of service they can expect that there is support for the most vulnerable and want to ensure their local environment looks and feels as good as it can – all of these things are under threat because of successive years of underfunding.

“Last week saw the publication of the Accounts Commission’s report on the health of council finances. The report makes it clear that councils are going to have to take very tough decisions over the next few years to balance the books, given the financial pressures they face.

“Responding to the Accounts Commission report, Scottish Government has quoted both real and cash terms increases of £2.2 bn between 2013-14 and 2022-23, but this is contradictory.

“We owe it to our communities to be clear, consistent and transparent about the starting point and how much less, in reality, councils have to spend year on year on the services that our communities rely on.

“In 2013-14, the Local Government funding settlement was worth £10.3 bn. Looking to 22-23 the Scottish Government provided £12.5 bn. This does equate to a £2.2 bn cash increase. However, that increase is heavily ring fenced and directed funding for core services and local priorities has stayed the same.

“The reality of having the same amount of money this year as 10 years ago for core services is a real terms cut. As well as increasing costs, this money is also now required to deliver more services than it was 10 years ago – Scotland’s population has increased, the number of households has gone up, COVID has left a legacy of support needs for the most vulnerable and as people live longer, their care needs have become more complex. This is just a snapshot of the demands being faced by councils, not to mention inflation and energy costs.

“For 2023-24, Scottish Government has stated that councils have seen a “£570m increase in their budgets” but the reality is, that only £38m of this can go towards pressures such as inflation, pay and service demand with the rest is for policy commitments that are already in the system, for example £100m to meet Real Living Wage commitments in social care.

To put this into perspective, a 1% increase in pay across the Local Government workforces equates to around £100m. £38m will not go very far, especially when combined with energy price hikes, supporting the most vulnerable and our commitments to tackle the climate emergency.

“This year, demand for services like social care is at an all-time high but given the range of pressure facing councils, they simply don’t have the resources they need to work towards keep people out of hospital.

“Each day during winter, there is quite rightly a focus on getting people out of hospital to free up beds– currently councils support just over 97% of patients to be discharged without delay.

“The problem is not just getting people out of hospital but stopping them going in – councils simply don’t have the resources they need to provide the care packages or the interventions that prevent ill-health.

“COSLA’s key concerns are not only the socially harmful impact of cuts on our communities, but the way in which Local Government finance has been presented to them. The messaging is that there is more money for essential services each year despite this not being the case with councils asking communities about where they want to see cuts and reductions if essential services, like schools, roads, waste collection, child and adult protection, environmental health and social care are to continue to be delivered, every day of every year.”

Scottish Government’s ‘National Mission’ to close attainment gap

Scotland’s councils set out ambitions to help young people succeed

Local authorities have published their plans for closing the poverty-related attainment gap.

Councils across Scotland have set their own “stretch aims” for children and young peoples’ progress in literacy and numeracy levels, for senior phase qualifications achieved, as well as for the number of young people participating in education, training, or employment.

For both overall attainment and in terms of closing the poverty-related attainment gap in literacy and numeracy, the collective stretch aims of local authorities demonstrate ambitions to work towards achieving the biggest two-year improvement recorded since the introduction of the Scottish Attainment Challenge.

This work will be supported by the Scottish Government’s £1 billion Scottish Attainment Challenge, with £43 million in Strategic Equity Funding allocated to local authorities this year. In total more than £130 million has been distributed to schools so far this year to help close the poverty-related attainment gap.

Cabinet Secretary for Education and Skills Shirley-Anne Somerville said: “We are committed to substantially eliminating the poverty-related attainment gap and councils have a crucial role in driving this national mission forward at a local level.

“Given the effect of COVID-19 on children and young peoples’ achievement of Curriculum for Excellence levels in 2020/21, these collective aims represent significant local ambition for recovery back to and beyond the national position pre-pandemic, aiming to narrow the poverty related attainment gap by over seven percentage points in both primary school literacy and numeracy compared to 2020/21.

“These will drive an enhanced focus on outcomes for children and young people, ensuring they have the opportunities and support they need to reach their full potential.”

Local government pay dispute is over

Following a meeting of Council Leaders yesterday, Councillor Katie Hagmann, COSLA’s Resources Spokesperson, said: “I am pleased to get this year’s pay deal for the Local Government Workforce concluded and over the line.  This now enables us to get money into the pockets of the workforce as quickly as we possibly can.

“This is a deal that clearly shows Scotland’s Council Leaders have listened to the very real concerns of our workforce and have responded positively.

“Council Leaders have said consistently throughout these negotiations that we value the work of our Local Government Workforce and are grateful for the difference they make within communities across Scotland.

“We also believe that it is a good deal which is about more than just pay. It is a package that includes an extra day’s holiday for SJC [Scottish Joint Council] staff on a recurring basis and payment of SSSC [Scottish Social Services Council] fees from this year onwards.”

Over 1,200 complaints over neighbours’ noise made every day

  • Last year saw nearly 450,000 complaints made to councils about noisy neighbours, averaging one every 70 seconds
  • However, only a third (32 per cent) of Brits are taking action to try to stop the noise
  • London has the most noise complaints; Yorkshire leading in tackling antisocial noise

Tolerance for noisy neighbours has fallen across the UK in the last two years, suggests new research from Churchill Home Insurance.

The last financial year saw nearly 450,000 noise complaints to councils across the UK, which equates to 1,229 every day, or one every 70 seconds. This is 10 per cent higher than pre pandemic (2019/20), an increase of nearly 70,000 complaints in two years.

The real number of noisy neighbours may be even higher than official figures, as just a third (31 per cent) of Brits have acted in response to a noise dispute with their neighbour.

The most common causes of excessive noise are playing loud music (19 per cent), hosting parties (16 per cent), animals (13 per cent), children and arguments (both 12 per cent).

Councils appear to be taking noise complaints increasingly seriously, as 4,015 noise abatement notices were issued last year, a rise of 15 per cent on the year before when only 3,487 were issued.

However, this still means fewer than one per cent of complaints end up with a notice issued. An abatement notice from a local authority may require that the noise be stopped altogether or limited to certain times of day.  People served with a notice have 21 days to appeal.

The Noise Act 1996 specifies that night-time lasts from 11pm to 7am for noise purposes3 and any excessive noise within that time is considered anti-social behaviour. Over half (52 per cent) of Brits have been affected by excessive noise from neighbours between these times within the last 12 months.

Although a third (33 per cent) of Brits believe excessive noise should not be permitted past 9pm. One in seven Brits (13 per cent) think there is never an appropriate time to make excessive noise.

When it comes to resolving noise disputes, almost two thirds (65 per cent) of victims tried to tackle the matter by speaking to their neighbour. However, in only half (53 per cent) of these cases did it lead to the issue being resolved. Other common actions taken were reporting them to the council (28 per cent), speaking to their landlord (20 per cent),  reporting them to the police (16 per cent).

Sarah Khan, Head of Churchill home insurance, said: “Noise can be extremely disruptive to our lives, especially if we feel it is excessive and during antisocial hours when we’re trying to rest or sleep. 

“As a nation it seems we have become less tolerant to noise over the last few years, but we are also home a lot more now as so many of us work from home or have a hybrid working patterns.

“There are rules governing noise so if you are affected then try speaking to your neighbours and explaining the problem and impact. If that doesn’t work, then keep a record of the type of noise and time of day it happens and speak to your local council about raising a noise complaint.

“You should also check your home insurance policy as you may find you have Legal Protection cover to pay for potential legal costs if you had to take legal action to get a resolution.”

Regional findings

London receives the most noise complaints in the UK, recording nearly 152,000 complaints last year and accounting for a third (34 per cent) of the total. This amounts to one complaint per 46 households, which is nearly four times the average outside of London (one per 12 households).

Six of the top 10 local authorities for noise complaints last year were in London, with Islington leading the way at over 14,000, a 41 per cent increase compared to two years ago. North Lanarkshire was the only council in the top 10 to see a reduction (-13 per cent) in the volume of complaints compared to two years ago.

At the other end of the scale, Argyll and Bute in Scotland received just one complaint for noisy neighbours, Runnymede in Surrey received just nine and Melton in Leicestershire just 59.

Table one: Councils which received the most noise complaints in 2021/22

Local councilNoise complaints, 2021/22Percentage increase vs 2019/20
London Borough of Islington14,22441 per cent
Royal Borough of Kensington and Chelsea12,945One per cent
London Borough of Hammersmith and Fulham12,78525 per cent
City of Westminster10,80322 per cent
Birmingham9,32845 per cent
London Borough of Newham9,07416 per cent
North Lanarkshire6,199-13 per cent
London Borough of Wandsworth6,15873 per cent
Manchester5,45034 per cent
Belfast5,396Five per cent
UK total448,52410 per cent

Source: Churchill Home Insurance 2022

Table two: Regional noise complaints 

RegionNoise complaints, 2021/22Percentage increase vs 2019/20Share of all complaints 2021/22
London151,81422 per cent34 per cent
South East47,89619 per cent11 per cent
Scotland38,976-4 per cent9 per cent
North West32,89721 per cent7 per cent
Yorkshire and the Humber29,58210 per cent7 per cent
West Midlands28,36232 per cent6 per cent
East of England27,54736 per cent6 per cent
South West27,54022 per cent6 per cent
East Midlands20,62114 per cent5 per cent
Wales17,5243 per cent4 per cent
Northern Ireland12,98811 per cent3 per cent
North East12,77825 per cent3 per cent
Total448,52410 per cent100 per cent

Source: Churchill Home Insurance 2022

Yorkshire has the highest rate of penalties to noise complaints, issuing more than 2,000 over the past three years, the equivalent to one for every 10 complaints.

While London leads the way in complaints, it has the second-lowest rate of issuing penalties for noise disturbances, issuing one order for every 79 complaints. This is second only to Northern Ireland, with one in every 88 complaints.

On a council level, Rotherham in South Yorkshire issued the greatest number of penalties for noise disturbances, with 527 last year, followed by Manchester (147) and Fife (146). Bradford (137), Kensington and Chelsea (106), Westminster (96), North West Leicestershire (85), Leicester (62), Bristol (58) and Bournemouth, Christchurch and Poole (55) complete the top 10.

Summer support for children from low-income families

Thousands of children from low-income families will benefit from free childcare, activities and healthy food as part of a £10 million summer programme.

Available to children and young people aged five to 14 years old who need it most, the funding has been allocated to local authorities to supplement existing holiday programmes or to develop new ones.

Education Secretary Shirley-Anne Somerville said: “School holidays can be expensive for families, especially when household bills are soaring. This funding means children and young people who really need it will be able to access coordinated childcare, activities and nutritious food over the summer.

“They will have opportunities to play, socialise and access a range of activities that broaden their experiences and supplement their learning.

“Support will be targeted at the six priority family types at greatest risk of poverty, including lone parent families and families with a disabled adult or child. We have a national mission to tackle child poverty and, along with £21.75 million in funding for alternative holiday food provision for families eligible for free school meals, this offer will provide much-needed support over the summer.”

COSLA Children and Young People’s Spokesperson Councillor Tony Buchanan said: “The rising cost of living is exacerbating the already stark and unacceptable reality of poverty in the lives of children, young people, families and communities.

“We are pleased that this additional funding will enable local authorities to build on their regular summer programmes to enhance opportunities and support for priority groups of children and young people.

“Councils and their local delivery partners will provide varied programmes, incorporating activities, childcare, and food provision, in line with local needs and guided by what children, young people, and families themselves say will make a difference.” 

Covid business support: Missing millions?

A detailed analysis of how Covid-19 business support funding was distributed during the pandemic is not possible due to gaps in data, according to spending watchdog Audit Scotland.

The Scottish Government provided about £4.4 billion of grants and non-domestic rate reliefs between March 2020 and October 2021, mostly paid out to businesses by councils. The government announced a further £375 million of support in December 2021 following the emergence of the Omicron variant.

Steps were taken to improve the management of funding during the pandemic.

But there was not enough focus on gathering detailed data on how money was distributed and how quickly applicants received funding.

This means:

  • The Scottish Government does not have an analysis of the total amounts paid out from the more general schemes to different economic sectors
  • For sector specific funding administered by national organisations such as Scottish Enterprise, around 20 per cent of payments cannot currently be matched to council areas
  • Similarly, information to enable wider analysis of how funding supported specific groups, such as the female owned businesses disproportionately hit by Covid-19, is not available from Scottish Government centrally held data.

 In late 2021, the Scottish Government completed retrospective impact assessments to consider how business support funding addressed inequalities. A retrospective fraud review of funding that councils administered was also carried out.

The government is currently undertaking a large data cleansing exercise to ensure that the datasets for individual funds, including those administered by councils, are complete.

Stephen Boyle, Auditor General for Scotland, said: “These business support schemes were administered at pace in exceptional circumstances. But knowing where the money went matters.

“To get future policy development and delivery right, it will be important for the Scottish Government to fully understand how funding was used to support specific businesses and groups over the last two years of the pandemic.”

William Moyes, Chair of the Accounts Commission, said: “Councils’ fraud arrangements are generally robust, but they were heavily relied upon to ensure businesses were eligible for funding during the pandemic.

“Councils will need to continue to work closely with the Scottish Government to ensure a better picture emerges of how money was distributed.”

Responding to the Audit Scotland report, Economy Secretary Kate Forbes said: “I am pleased that both Audit Scotland and the Accounts Commission have recognised how quickly the Scottish Government was able to establish a wide ranging business support package in order to help safeguard thousands of businesses and jobs.

“This includes providing direct support to over 4,000 businesses and over 5,000 self-employed people who were facing hardship but ineligible for UK Government funding support.

“I am equally pleased this report reflects the unique and challenging context in which new support packages had to be established, and that despite the speed and scale of our response, we were able to work closely with industry, our enterprise agencies and local authorities.

“This helped to ensure the delivery of the business support funding was a shared endeavour and minimised risk and fraud. Without the efforts of our partners, we wouldn’t have been able to deliver this lifeline support at the scale and pace necessary and I thank them for working so closely with us.

“Every decision the Scottish Government has taken has centred around ensuring businesses got the support they needed when they needed it – resulting in over £4.5 billion being allocated to businesses across the country, including around £1.6 billion in rates relief – which is more generous than the other UK administrations so far.

“We will now carefully consider the findings of this report and of course any lessons will be learned, but fundamentally this report shows the decisions we took ensured lifeline support reached key businesses promptly and our economy continued to grow by 7.1% despite the necessary public health restrictions.”

Additional funding boost for councils

An amendment will be brought forward during Stage 2 of the Budget Bill to allocate an additional £120 million to local authorities. The funding represents the equivalent of a 4% Council Tax rise.

Finance Secretary Kate Forbes said whilst councils have full flexibility in setting local council tax rates, there is no requirement for any inflation-busting increases in 2022-23.

The money is being made available after the UK Government advised that the Scottish Government should anticipate further funding for 2021-22, funding which will be confirmed at the Spring Supplementary Estimates next month.

Speaking during the Stage One Budget Bill debate, Ms Forbes said: “I am in no doubt about the important role local authorities play in our communities and in helping manage our ongoing response to the pandemic. I also understand the financial challenges they face.

“The 2022-23 Scottish Budget remains fully allocated and for weeks the UK Government has been telling us not to expect further funding. That has now suddenly changed and the UK Government has advised that we should anticipate further funding for 2021-22 which will be confirmed at the Spring Supplementary Estimates next month.

“Consequently I now have some new flexibility and am pleased to confirm my intention to utilise the Scotland Reserve to carry forward sufficient funding to allow me to allocate a further £120 million of resource to local government. Councils will have complete flexibility to allocate this additional funding as they wish in 2022-23.

“Councils asked for an additional £100 million to deal with particular pressures. We have heard them and listened and we are going to go further. This will allow them to deal with the most pressing issues they face.

“At a time when people are understandably worried about the cost of living, I would point out this increase in funding would be equivalent to a 4% increase in Council Tax next year, so whilst councils have full flexibility in setting local council tax rates, I do not believe that there is a requirement for any inflation-busting increases next year.”

Reduction in council funding must be halted, says COSLA

A real terms reduction in Local Government funding in recent years must be halted to prevent Scotland’s communities and businesses suffering the effects of further cutbacks, COSLA has said.

This year’s Scottish Budget – to be announced next week on December 9 – should also recognise Local Government’s unique role in economic transformation, and must enable meaningful reinvestment in the services that underpin the economy.  

Councils have significant spending power and the potential to build local wealth. Every pound spent in a local area – on pay, goods and services,  and on capital projects – stays in and strengthens the local economy that enables people to ‘Live Well, Locally’.

COSLA also warns that without adequate funding for Local Government to support economic transformation, issues such as unemployment and child poverty will continue to rise, hitting communities hard and costing the whole system more in the long run.

COSLA’s Resources Spokesperson, Councillor Gail Macgregor, said: “The economic challenges faced across Scotland require a new response – one that is in tune with the needs of local areas and resourced sustainably.

“The Scottish Budget on December 9 presents a perfect opportunity to reset Scottish public spending in a way that empowers councils to achieve their ambition for our communities, creating jobs and sharing prosperity.

“Scotland’s Councils have invaluable local intelligence with local businesses, colleges and universities, about key sectors, local labour markets, and skills/training needs that should be valued and fully utilised to allow our communities to thrive and enable people to ’Live Well Locally’.

“As well as the many great examples we have in our Lobbying document, take somewhere like Dundee where as part of the major development to their waterfront that includes the prestigious V&A Museum, Dundee City Council has used its influence to encourage payment of the living wage by partners and private sector business including its contractors.

“In addition, units that have been created for let are being leased to businesses that are committed to providing the living wage delivering positive and sustainable developments to the local economy.”

COSLA Vice President Councillor Graham Houston added:  “Only Councils have the vital local connections across the services that underpin economic transformation we require post-COVID.  

“Take something like housing for example – a basic human right.  It is not just about throwing up new homes – it’s about building them in a way which helps transform our communities, in a way which is affordable, and in a way which supports our commitments to tackle climate change and to community wealth building.

“There has to be that connectivity that only Local Government can provide.  Councils make and shape the places we live in and love and with proper funding form Government would be the real enablers in allowing people to ‘Live Well, Locally.’”

Councillor Alison Evison, COSLA President concluded:  “One of the reasons our communities are suffering is that recent years have seen a real terms reduction in Local Government funding overall, so Councils have had to prioritise protected areas like social work and education, over economic development, roads and transport.

“But these are the essential service areas that are critical in attracting investment, developing businesses, and creating jobs – this can create the conditions to lift families out of poverty.

“That is why this year’s Scottish Budget must recognise Local Government’s unique role in economic transformation, and must enable meaningful reinvestment in the services that underpin the economy.”

COSLA launches Live Well Locally budget lobbying campaign

COSLA is today calling for adequate funding from the Scottish Government and a reversal of historical cuts as it launches its Budget Lobbying Campaign, ‘Live Well Locally’.

COSLA says urgent action is needed to address the consequences of real term cuts to the core budgets of Scotland’s 32 Councils in recent years.

The call comes as Finance Secretary Kate Forbes prepares to lay out the government’s spending plans in the Scottish Budget on December 9.

COSLA says Local Government can no longer continue to be the ‘poor relation’ it has been in recent Budgets and that December 9 presents a perfect opportunity to reset Scottish public spending in a way that empowers councils to achieve their ambition for our communities.

Speaking at a virtual news conference in Edinburgh, the COSLA President, Councillor Alison Evison, said: “Enabling people to ‘Live Well Locally’ is a shared ambition across Scottish Government and Local Government, but the resources must be provided to deliver this at a local level in line with local democratic choice.

“Sadly cuts to Councils’ core budgets over recent years have not allowed us to fully realise this shared ambition.”

COSLA’s Vice President, Councillor Graham Houston, said:  “The fact is that Scotland’s Councils are key to creating the conditions for people within our communities to ‘Live Well Locally’, whether that’s on a remote farm or in a city centre.

“People’s local environment has become even more important during the pandemic and Local Government must be empowered and funded properly to allow us to create the environment for people to ‘Live Well Locally.’  Recovery needs to start locally to tackle the key issues facing our communities and local leadership is needed for that.”

COSLA’s Resources Spokesperson, Councillor Gail Macgregor, added: “Tackling the economic and health challenges created by the pandemic needs a local dimension – all the evidence and research backs this up.

“We fully support Scottish Government’s ambitions around economic transformation but that starts in every community.

“Local Government has been the poor relation of recent Budgets and our local knowledge and links need to be used fully before we are past the point of no return.  Our communities are starting to show the neglect of an under-funded Local Government.

“Quite simply, what we need from this Budget is proper funding to provide the everyday services our communities need and deserve.”

Read the ‘Live Well Locally’ document here

Edinburgh urges other cities to join it in signing up to Scotland’s new Civic Charter on Climate

Edinburgh City Centre View

The City of Edinburgh Council is calling on others to follow its lead and sign up to the newly launched national Civic Charter on Climate.

Edinburgh was the first – and is so far still the only – Council in Scotland to put its name to the document, which emerged from the painstaking deliberations of the national Climate Assembly.

The Civic Charter is addressed to the Scottish Government, Scottish Parliament, and to Scottish society as a whole. It stresses the need for urgent changes to the way we live, what we eat and grow, and how we travel and work in the future to help Scotland tackle climate change. The Scottish Government will formally respond to the recommendations of the Climate Assembly later this year.

Elected members in the Capital voted to sign up following a motion to Full Council by Environment Convener and Vice Convener Councillors Lesley Macinnes and Karen Doran in September, which also highlighted that Councils will require additional resources if the Scottish Government adopts all the charter’s recommendations.

Councillor Macinnes said: “Climate change is a real and urgent issue that we simply cannot ignore. Last month we were very proud to become the first – and so far only – Scottish local authority to put our name to this hugely important document. Doing so sends a clear signal to those who look to us as a Capital city that we and our partners are prepared to take bold action and find the right solutions in the face of the climate change emergency.

“We sincerely hope other Councils and organisations right across the country will now follow suit and add their voices to the national call for action and change to tackle the climate crisis in an effective and fair way.”

Councillor Doran said: “As Scotland’s Capital and economic centre, we want to make sure that a cleaner, greener and fairer future for everyone is at the heart of our plans to rebuild a strong economy after Covid-19.

“We have set an ambitious target for Edinburgh to become a net-zero city by 2030 and we’re already investing in a number substantive actions to support the city’s target and secure a greener future for our citizens.

“Achieving net zero will take a concerted, citywide effort to cut emissions and as a country, we need a similar collective mindset and approach. This Civic Charter will help lay the foundations for a national strategy for Scotland to deliver on its climate change commitments.”

Scotland’s Climate Assembly was set up to find common ground on how Scotland can tackle the climate emergency in a fair and effective way.

Over the course of seven weeks, 100 randomly selected, but demographically representative members considered evidence from three areas: diet, land use and lifestyle; homes and communities; and travel and work.

From this members identified 16 goals for reducing climate impacts which make up the Civic Charter. These covered a broad range of issues, including household heating, emissions, land use, taxation and the economy. The Climate Assembly was also the first to include young Scots, through a partnership with the Children’s Parliament.

People are urged to support Scotland’s Climate Assembly on social media using the hashtag #SignForScotland – and watch their animated 2-minute explainer video for more information.