Councils on the brink of collapse

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.”

Choudhury supports Fire Brigade Union’s #CutsLeaveScars campaign

The Scottish Fire and Rescue Service (SFRS) have announced a programme of £11 million worth of cuts for 2023-24, which could lead to catastrophic removals of equipment and firefighter positions at fire stations.  

Crewe Toll Fire Station in Edinburgh is due to be affected, with the potential loss of the station’s Turntable Ladder, the piece of equipment which allows rescues from height. 

If the equipment is removed from the station, and if no other height appliance was available to attend, there would be no external rescue possible from above the fourth floor in a building.  

Foysol Choudhury MSP this week visited Crewe Toll Fire Station to discuss the impact that these cuts would have on the firefighters and their ability to do their job safely. 

Following the visit, Mr Choudhury said: “Firefighters risk their lives doing their jobs to save us, and our buildings, from fire.   

“They depend on vital equipment to help them do this safely and so I am incredibly concerned that this equipment could be removed, meaning that rescues from height will not be possible. 

“With over 50 buildings above four floors in the surrounding area, this proposal makes no sense.  

“If there is a fire in a block of flats in the area surrounding Crewe Toll, what will happen?  

“These cuts should not be made, knowing the dangers that fires can cause and the tragedies they lead to.  

“You can sign the petition to help Crewe Toll Fire Station retain their height appliance here: https://chng.it/CJncjdvty7” 

The Labour list MSP is supporting FBU Scotland’s #CutsLeaveScars campaign, which is calling for a reverse to the decision to cut £11million from services.

Mr Choudhury is also calling on the Scottish Government to urgently review their funding arrangements with the SFRS, so that these cuts are not forced and so that both firefighters and the public can be kept safe by a fully resourced fire and rescue service. 

Council braced for more cuts

‘Early grip’ of budget to ensure best value for residents

The City of Edinburgh Council has begun budget setting early in an extra effort to ‘futureproof the services which matter most to residents and deliver them more efficiently’.

report published this week outlines high level proposals for how the council will ‘innovate to lower costs and provide best value for the people of Edinburgh’ when it sets its next budget.

As it is developed further, the Financial Strategy and Medium-Term Financial Plan will provide a forward look and action plan to address the city’s longer-term financial challenge – while staying true to Edinburgh’s core values, priorities, and commitments made in the council’s business plan.

With a focus on improving services where possible rather than reducing them, the initial proposals are based on:

  • An assumed Council Tax rise of at least 3 per cent;
  • A programme of internal change involving a new system to better support HR activities;
  • More efficient use of Community Transport;
  • Exploring new income and trading opportunities;
  • Making the best use of the council’s estate so that it has fewer but better buildings;
  • Managing contracts and partnerships more efficiently and at lower cost;
  • Driving down costs by embracing digital solutions.

This early planning comes just a few months after Councillors controversially agreed a Lib-Dem budget for 2023/24 set against a backdrop of real-terms reductions in core government grant funding.

Councillor Mandy Watt, Finance and Resources Convener, said: We’re proud of our commitment to making Edinburgh a greener and fairer city, and to getting the basics right. And we’re equally proud of our track record of strong financial management. This strategic approach prepares us for the challenges that we’ll face over the coming years.

“The work we do now will pave the way for protecting and enhancing our investment in Edinburgh’s future, which we’ve committed to in the council’s Business Plan. We need to make this investment, whilst also prioritising the day-to-day services residents say matter most to them right now.

“Local authorities have suffered a decade of continuous real term income cuts from central government and Edinburgh is no exception. In fact, Edinburgh remains the lowest funded council per head in Scotland, despite the unique pressures which come with being Scotland’s capital city – our projected population growth, the climate crisis, and our well documented housing shortage.

“The Scottish Government could do more to support Edinburgh. Fast tracking the Transient Visitor Levy, and allowing councils to decide what to use the income for, would make a huge difference to our finances.

“I know that financial planning can cause concerns, particularly amongst our workers, so I want to make it absolutely clear that I remain committed to the council’s longstanding approach to no-compulsory redundancies.

“A further report re-affirming this will be brought to a meeting of the Policy and Sustainability Committee in August and we will continue to engage with Trade Unions throughout the ongoing budget process.”

Chancellor launches efficiency drive to cut £5.5 BILLION of Govt. waste

  • The Prime Minister and the Chancellor order new crackdown on cross-Whitehall waste to drive efficiency, effectiveness, and economy across government.
  • The drive will be spearheaded by a new Chancellor-chaired “Efficiency and Value for Money Committee” that will cut £5.5 billion worth of waste – with savings used to fund vital public services.
  • As part of the crackdown, the annual NHS efficiency target will be doubled to 2.2% and “quangos” will be expected to find at least £800m which will be pumped back into public services.

A CROSS-WHITEHALL efficiency crackdown to cut £5.5 billion of wasteful spending was announced by the Chancellor today (Sunday 20 March).

At the request of the Prime Minister, the Chancellor, Rishi Sunak will spearhead a new drive on efficiency, effectiveness and economy in government spending to ensure departments are delivering the highest quality services at the best value.

The crackdown will be driven by a new Chancellor-chaired Efficiency and Value for Money Committee that will ensure the 5% efficiency target set at the 2021 Spending Review is met across Whitehall and scrutinise strategies to prevent fraud and error. The move will save a total of £5.5 billion with the money being pumped directly back into vital public services.

As part of the renewed drive, the Chancellor said the NHS efficiency commitment will double to 2.2% a year – freeing up £4.75 billion to fund NHS priority areas over the next three years

These savings will be made through a range of programmes including the digitisation of diagnostic and front-line services, which has been shown to reduce cost per admission by up to 13%, improving the efficiency of surgical hubs and developing digital tools to cut time spend by NHS staff on admin tasks.

Surgical hubs improve efficiency by separating emergency and elective care, so more patients can be seen in a given amount of time, improving value for money without impacting patient safety.

This increased efficiency target will ensure that the record funding settlement of £188.9 billion a year by 2024-25 for the Department for Health and Social Care is delivering the best possible value for money for the taxpayer, the money saved will be used to fund front line NHS priorities.

Chancellor of the Exchequer, Rishi Sunak said: “During these challenging times it’s vital that every single penny of taxpayers hard-earned cash is being spent well.

“The current level of waste across government is simply not acceptable – which is why we’re doubling down on wasteful spending and launching an efficiency drive to make £5.5 billion worth of savings.

“That money will then be pumped directly into the world class public services that the British people deserve “

The crackdown will also see a review of Government Arm’s Length Bodies or “Quangos” who will be expected to save at least £800m from their budgets.

The Arm’s Length Body Review will see savings come from better use of property, reduced reliance on consultants, increased digitisation and greater use of shared services, as well as the use of benchmarking to drive efficiencies.

The Treasury will also launch a new Innovation Challenge to crowdsource ideas from civil servants on how government can reduce waste and improve public services, with winners selected this Summer and best ideas becoming Government policy

This new Committee comes ahead of the Chancellor’s Spring Statement on Wednesday (23rd March) where the Chancellor will update Parliament on his plan for the economy in response to the OBR’s latest economic forecasts.

Save Our Care Homes: protest lobby at City Chambers tomorrow

UNISON will be holding a static lobby outside the Edinburgh City Chambers tomorrow (Tuesday 17th August) from 9.30am to coincide with the meeting of the Edinburgh Integrated Joint Board (EIJB) meeting taking place at 10am.

Although this meeting will not be making a final decision on care home closures, they will be planning to move forward with wider consultation on the issue, with the purpose of coming to a decision at a meeting in September.

It was UNISON’s quick actions that ensured the EIJB did not move forward with the proposed closures at their meeting on 22nd June 2021.

UNISON will be making a deputation to the meeting tomorrow and will be calling for:

  • the saving of our care homes;
  • meaningful engagement with the trade unions;
  • call for proper impact assessments; and
  • the need to have a wide-ranging meaningful public consultation.

UNISON want care homes to remain run by and for the public and not run by private companies for private profit.

If publicly owned and run care homes are not up to standard, then investment in adaptation, or the building of new care homes must be done to ensure that any demand can be met.

Staff in care home must be paid a decent wage, have access to developmental training and feel secure in their employment.

The lobby outside the City Chambers on Tuesday 17th August is only part of the union’s campaign to ‘Save Our Care Homes’ and UNISON plan to build to a bigger event for the September meeting.

You can sign UNISON’s petition here and click here for a link to a ready-made email to your MSP.

The Another Edinburgh is Possible campaign group is also urging the capital’s citizens to support the fight against care home closures:

‘Join the protest rally outside the City Chambers as the Edinburgh Integrated Joint Board meets on Tuesday 17th August. It’s likely that the board will hold a special meeting in September to make the decision to close 5 out of the 9 local authority care homes in Edinburgh.

‘We want to build a campaign that is so strong that when that meeting takes place the board has no option but to drop its’ closure plans. Three Edinburgh City Councillors sit on the board. We’ve written to the leaders of all five party groups on the council demanding that their group takes a clear and unambiguous public position in opposition to the closures.’

‘Devastating’: Care workers launch campaign to save Edinburgh’s council care homes

UNISON, the trade union for social care, has launched a campaign with care staff to save care council run care homes in Edinburgh. 

The campaign follows proposals put forward by Edinburgh Integrated Joint Board to close Clovenstone, Ferrylee, Ford’s Road and Jewel House Care Homes. Furthermore, Drumbrae will also close as a care home and switch to hospital-based complex clinical care.

The proposals mean large scale disruption for care residents and 270 care home posts will be deleted and a further 160 care home jobs put at risk.  

Care staff are in the process of writing to Edinburgh City Council leader councillor Adam McVey as part of UNISON’s on-going campaign to step in and save these council run care homes.

UNISON are also running an online petition to show councillors the depth of feelings of residents, staff, and those in the wider community. Over 100 people signed the petition in one day. Further campaign action and demonstrations are planned.

blob:https://www.facebook.com/542f7f78-6fe5-44c8-9948-ee5af84b527c

Tom Connolly UNISON City of Edinburgh branch secretary said: “Closing four care homes, and changing the role of another, without proper and meaningful consultation is wrong. 

“It is devastating for care home’s residents. Its also insensitive to staff who have put the health and wellbeing of care residents before themselves and their families throughout this pandemic.  Caring for our vulnerable elderly is a vital job, care homes are essential and care staff deserve support from all of us.”

Greig Kelbie, regional organiser said: “We need the support of the Scottish Government to start planning and financing the next generation of modern fit-for-purpose care homes and Edinburgh councillors should stand up for council run care homes.

“Making these decisions without a fully costed plan on how community care and care at home would be an adequate replacement is a dangerous precedent to set.

Scotland’s care system already relies too heavily on for-profit care homes. Edinburgh can buck that trend by supporting council-run care homes that focus on providing quality care not making of money.  I urge everyone to back UNISON’s campaign to Save Our Care Homes, and sign, and leave a message, on our online petition.”

Care home staff at Fords Road

David Harrold, UNISON’S Service Conditions Convenor, met with staff from Ford’s Road Care Home yesterday and said afterwards: “Staff are united in their opposition to closures, they see no sense or long-term value in the proposals put forward by the Edinburgh Integrated Joint Board to close Clovenstone, Ferrylee, Ford’s Road and Jewel House Care Homes when it is clear there is no alternative services that can take on the responsibilities and workloads in their absence”.

The meeting at Ford’s Road Care Home was well attended with staff expressing their frustration at their employer’s attitude.

One attendee asked how he can receive the £500 government bonus last month, then be told the following that his future employment is in doubt! Another asked why councillors who have praised them throughout the pandemic and lockdown should now be so silent.

Despite this frustration their dedication to those in their care remains. UNISON ask that the public acknowledge this, by sending a clear message to both the Council and IJB that care home staff deserve better and that Edinburgh needs a viable care home system not just for today’s residents for the future generations.

UNISON’s online Edinburgh City Save our Care homes petition here:

Edinburgh City – Save Our Care Homes | Megaphone UK Edinburgh City – Save Our Care Homes | Megaphone UK

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Comments on why people have signed the online petition include:

  • Our elderly should be looked after not thrown aside where are they going to put the residents” – Tracey M.
  • My mother receives care in an Edinburgh council care home. The place and staff as fantastic. I know the confusion that is caused by moving long term residents.” – Stewart D.
  • Need council run care homes not everyone can afford private care” – Sharon S.

Ghosts of Budgets past (passed?)

UNISON: ‘Local government is at the point of collapse’

UNISON City of Edinburgh branch, has raised fears about the further budget cuts being presented to the city’s full council meeting today and condemns both the Scottish and UK governments for the continuing underfunding of Local Government. 

Over the past 10 years the council has seen hundreds of millions of pounds slashed from its budget resulting in hundreds of job losses, cuts to services, and the closing of third sector organisations. 

“Local government is at the point of collapse and the Scottish and UK Governments have done very little to prevent its demise while at the same time due to COVID-19 has asked it to do more,” said the union’s branch secretary Tom Connolly. 

“Providing services from the cradle to the grave, local government and the services it provides impact on all citizens. The continuing underfunding can have a serious impact on the effectiveness of the services being provided.” 

UNISON, the biggest union representing workers in Edinburgh council,  says that those employed in local government are fire fighting to keep services running, they feel undervalued and the increasing high levels of stress amongst staff is an example of the negative impact on the health and wellbeing of those staff. 

UNISON’s Plug the Gap campaign https://www.unison-scotland.org/protect-our-council-services/ has called on the government to bridge the £1 billion funding gap in local Government. COSLA has also called for the action to be taken to bridge the Funding Gap. 

“Everyone suffers if Local Government is not provided the funding that it needs to provide meaningful services across our communities,” added Tom Connolly. 

“Staff in local government need to be rewarded and paid well for the jobs that they do, there are many low paid workers in local government providing face to face support to or most vulnerable children and adults, in school, care homes etc.  

“Other council staff keep our public buildings clean, keep our roads clear, clean our streets and empty our bins, administrative and clerical workers dealing with benefits and other essential administrative tasks, all examples of low paid and undervalued workers who have continued to keep the city running.   

“These workers now need to be given the value that they have always deserved and rewarded with decent pay and conditions. Clapping does not pay the bills.”

As the city council’s budget meeting gets underway, some images from budgets past:

Edinburgh Deserves Better!

Campaign group publishes alternative vision

With yet another round of budget cuts looming, campaign group Another Edinburgh is Possible has published an interim survey which shows widespread dissatisfaction with council service provision across the city.

The group, made up of trade union and community activists, invited Edinburgh residents to share their views on council performance – and the results will make uncomfortable reading for the administration’s leaders.

Public conveniences, poor road and pavement maintenenance, housing and homelessness services came in for particular criticism and the controversial Spaces for People initiative also attracted adverse comments.

There was criticism, too, for Edinburgh’s health and social care, while community education, social work and the city’s community centres also ranked poorly.

Despite years of cuts to council services – £320 million since 2012/13 – the City of Edinburgh Council is looking to make further ‘savings’ in the new financial year. £80 million has already been identified but the council has still to find an additional £5.1 million.

Looking further ahead, the picture remains bleak. The city council has plans to make savings of £40 million overthe next three years – but it will also have to find a further £47.5 million.

Campaigners say cuts of this magnitude are unsustainable, and Another Edinburgh is Possible organisers are now urging citizens to contact their elected representatives ahead of tomorrow’s crucial budget meeting.

Another Edinburgh is Possible is one of six delegations to Thursday’s full council meeting, which starts at 10am.

Agenda frontsheet  PDF 276 KB

The group has put forward four recommendations:

  • The ‘in-housing’ of Edinburgh’s public services
  • Improved communications with Edinburgh’s residents
  • A re-ordering of council priorities
  • The integration of Edinburgh’s transport system under public ownership

Edinburgh is currently run by an SNP – Labour ‘Capital Coalition’ although the Conservatives are now the biggest group on the council with 17 councillors.

The council says: “We deliver a vast range of services – more than 700! – to people who live and work in Edinburgh. This year alone, we will spend more than £1 billion on services and investing in our priorities.

“We’ve committed to ending poverty and becoming a net zero carbon city by 2030, while improving the wellbeing of our whole city. Now, more than ever, we must hold on to these commitments.”

Labour councillor Cammy Day is deputy leader of the city council. He lays the blame for continued cuts on the SNP – despite the Nationalists being Labour’s partners in Edinburgh’s Capital Coalition.

He said on FaceBook: “Despite over a decade of SNP cuts to Edinburgh Council – we will deliver a budget helping people who experience poverty, challenge issues around sustainability, reduce fee increases in key areas and, in thanking our communities, we will make investments to upgrade the city’s parks and greenspaces which have been a space for enjoyment during a challenging year for us all.

“Edinburgh Labour have also ensured substantial investments in providing proper digital inclusion for all of our school pupils across the city. All of the SNP government funding required has been allocated to our Health and Social Care work, and it is woefully short.

“Edinburgh Labour will continue to press the SNP Government for full funding to support the most vulnerable in our city, and prioritise any additional funding to support this.please get in touch and show your support – we need everyone to push the SNP government to fairly fund our capital city.”

Local government elections are scheduled to take place in May.

There’s still time to have your say – you can complete the Alternative Survey of Council Services up until 21 February:

http://anotheredinburghispossible.org/…/the…/

Council looks to balance the books

City councillors will next week consider a report outlining proposals for a balanced overall budget for 2021/22 as uncertainty persists around future changes and financial pressures brought about by the ongoing Covid19 crisis.

The report was published yesterday, a day ahead of today’s planned announcement by the Scottish Government of the 2021/22 Local Government Financial Settlement. 

Financial flexibilities already agreed with the Scottish Government have contributed to the balanced budget position for 2021/22, with an acknowledgement that more fundamental service reform, improvement and prioritisation will be required in future years.

At their meeting on 2 February the Finance and Resources Committee will also consider the Council’s new three-year Business Plan, titled ‘Our Future Council, Our Future City‘, which brings together the Council’s strategic priorities in a single plan responding to the need for change and seeks to shape a fair and green post-pandemic recovery for the Capital over the years ahead.

The Business Plan aims to deliver a sustainable, fair and thriving future for Edinburgh, responding directly to the aspirations tens of thousands of residents have shared for their home city as part of the 2050 Edinburgh City Vision process and guided by the Council’s three key priorities of tackling poverty and inequality, boosting sustainability and enhancing wellbeing.

As well as reporting a balanced budget position for 2021/22, the Revenue Budget report sets out a budget framework for the following four years.

During this time, due to a combination of rising demand, inflationary pressures, legislative reform and a level of funding that is not expected to keep pace, the Council will be required to save more than £100m whilst maintaining an appropriate level of reserves.

Difficult decisions on where to prioritise investment will therefore be unavoidable. 

Finance and Resources Convener Councillor Rob Munn said: “Like all Scottish local authorities, we find ourselves in a difficult situation, both in terms of how long Covid restrictions will be in place and what further pressures the pandemic will place on our budgets in the months to come. We’ve already faced budget pressures of around £85m through increased expenditure and lost income.

“That’s why it’s entirely pragmatic to set a balanced one-year budget for the next financial year while preparing for broader reforms from 2022 onwards.

“Our recent Best Value audit by the Accounts Commission found that we’re managing our finances well but recommended that we set out longer-term financial plans and that we pull together our ambitious strategies into a single plan.

“Both the Business Plan and the five-year budget framework we’re proposing respond directly to this recommendation and, taken together, they will help us reprioritise and, where required, redesign services to address budget gaps and progress our core priorities over the coming years.”

Vice Convener Councillor Joan Griffiths said:In setting out a balanced budget position for 2021/22, I am particularly pleased to note that, through careful financial management, we’re able to sustain vital frontline services; the services our communities have so depended upon during the incredibly difficult and challenging situation we’ve all faced since the pandemic began. 

“We remain fully committed to our established priorities of tackling poverty and inequality, boosting sustainability and promoting wellbeing – all of which were set based on direct public feedback on what is most important to the people of Edinburgh.

There’s no doubt some very challenging times lie ahead but we’re determined to maintain our focus on investing in attractive, safe and sustainable places to live, building thousands more affordable homes and high-quality modern schools and early years settings to give our children the best possible start in life. The residents of Edinburgh deserve nothing less.”

The Business Plan sets out three core priorities for the city:

(i) ending poverty and preventing adverse outcomes such as homelessness and unemployment;
(ii) becoming a net-zero city; and
(iii) ensuring wellbeing and equalities are enhanced for all.

These will be aligned with the priorities set out in the Edinburgh Partnership Community Plan which were developed based on feedback from communities.

The priorities, shared by all members of the Edinburgh Partnership, are to ensure all citizens have: 

  • Enough money to live on
  • Access to work, learning and training
  • A good place to live.

An update to the budget proposals will be reported to councillors once the implications for Edinburgh of the Scottish Government’s LGFS are known. 

UNISON: Tory hypocrisy as they clap workers on a Thursday and slap them on Monday

UNISON’s Edinburgh Council branch has reacted angrily to attacks on council workers by Conservative leader Ian Whyte in the Evening News (18 January), and has urged the public to get behind staff who have worked ‘above and beyond’ throughout the COVID-19 crisis.

Tom Connolly, UNISON Edinburgh branch secretary, said: “Councillor Whyte (below) should be praising the work of council staff who have been providing services above and beyond throughout the pandemic.  Again this is an example of Conservative hypocrisy, clapping workers on the Thursday then slapping them on the Monday.”

Slamming Ian Whyte’s call for staff to be compulsorily redeployed to tasks ‘like winter maintenance’, Tom Connolly added: “I’m sure the public would have questions to ask if staff were taken off tasks like child protection or environmental protection to clear pavements. The fact is that council workers have volunteered in droves to help out throughout the pandemic, inventing new ways of working and ensuring services are delivered where possible. They deserve thanks not criticism.

“Thankfully, the public see the real picture. They see under-pressure, under-paid NHS, Social Care & Council staff and all key workers putting themselves on the frontline to help the vulnerable.

“Councillor Whyte’s comments are the more galling given the Conservative austerity onslaught that has seen local government cut to shreds with 50,000 public service jobs cut in Scotland. The local Conservatives should do something meaningful, such as calling for greater public sector investment

“The real lesson the COVID-19 pandemic has taught us is not so-called flexibility to cover up cuts. It is that if all public services had been adequately maintained and grown, we would have been in a much better place to respond.  

“UNISON stands with our members and all keyworkers and thanks them for all that they have done and continue to do.”