Scotland’s councils continue to face severe financial pressures. The need to consult with communities, clearly communicate the impact on local services, whilst working together to shape and deliver urgently needed transformation, is more important than ever.
Councils closed a budget gap of £759 million during 2023/24, but this required them to make further and deeper savings.
Reflecting on the state of council finances in that financial year, the Accounts Commission reports many councils made savings or used reserves to deliver services within budget and offset a 3.3% real-terms reduction in revenue and income.
Using reserves to routinely balance budgets isn’t sustainable and risks financial sustainability.
Despite an overall increase in funding in 2024/25 and a further funding increase announced for the year ahead, intensifying demand for services, greater borrowing and depleting reserves pose ongoing challenges.
In 2023/24 councils borrowed more to invest in buildings and infrastructure, whilst Scottish Government money to support capital investment continued to decline. Council borrowing increased by over £400 million and almost all councils now face higher levels of debt and annual interest costs.
This investment is vital, however, in supporting spending on key areas including new schools and housing projects, whilst reducing the risk of buildings becoming unusable and impacting services still further.
Jo Armstrong, Chair of the Accounts Commission, said: “Scotland’s councils face a challenging future, with significant financial risks and uncertainties.
“This has been compounded by pressures out with their control, including ever-increasing demand on services and inflation. An expected increase in funding for the year ahead doesn’t cancel out the urgent need for transformation, at a pace and depth we’ve not yet seen.
“With services already being impacted, councils must be clear with communities the scale of financial challenge being faced. Working with communities to deliver differently is vital.”
Still time to sign up for our Community Councils webinar at 6pm on Wed 29 January, when we will get an update on the Democracy Matters consultation from the Scottish Government.
The Democracy Matters engagement process asked communities to consider what the future of community decision making should look like where they live.
On 19 September 2024, COSLA and the Scottish Government published the Democracy Matters National Conversation report alongside a joint statement reaffirming their commitment to this work.
In this session Scottish Government officials will be presenting the process findings and outlining next steps for this important work.
I am writing to you to provide an update on Edinburgh TSI* activity since the EIJB Board meeting on November 1 and to invite your collaboration on the next steps.
Though it was welcome that the IJB agreed not to proceed with an in-year cut to the Third Sector Grants Programme, the process leading to that decision, and risks flowing from the meeting on November 1 remain very challenging.
Resolving the funding position for the Third Sector Grant recipients, and all third sector funding from the IJB for 2025/6 alongside co-designing the conditions of success for any future model of working in partnership is a key priority for the Sector, and as a consequence, for the Edinburgh TSI.
We believe the IJB proposals need to be part of a wider strategic conversation in the city about how we invest in the Third Sector, ensuring we have the right investment in the right places with the right capacity to deliver the most impact.
Edinburgh TSI letter following November 1
In the lead-up to the November 1 IJB meeting, we worked collaboratively with the Edinburgh Community Health Forum, and others across our sector to draw out information for briefings from affected TSOs through phone calls, questionnaires and meetings. This concluded with a detailed rebuttal of arguments in Paper 7.2, as presented to the IJB as well as a TSI deputation. The deputation sought to build on the arguments put forward by organisations for time to plan better and work differently.
Following that meeting, I wrote on behalf of the TSI to the Chair of the EIJB, the leader of the Council, the CEC Chief Executive and the NHS Lothian Chief Executive. I emphasised the need for:
Resetting investment: there is a need for a whole city conversation on a sustainable financial settlement for the Third Sector
Reforming ways of working: there needs to be a better approach to commissioning, valuing and supporting The Third Sector through change
Repairing relationships: recognising and valuing the value of the Third Sector contribution to communities is an important part of relationship development
Edinburgh IJB engagement on Third Sector Grants and contracts
Agreeing on a funding settlement for 2025/6 is a key objective for the Third Sector, both for the Third Sector Grants Programme and for the larger contracted services with Third Sector Organisations.
There are different possible scenarios. A best-case scenario might be a one-year continuation of the grants programme while time is dedicated to coherently and collaboratively designing a sustainable “replacement” which enables the IJB to purchase what they need and want from the Third Sector while providing foundational funding for the wider sector.
This will require a series of conversations, some sense of prioritisation and scoping of how to manage change. The big challenge is time. Initial discussions are progressing between Edinburgh TSI and the IJB on immediate priorities, and a meeting has been invited with CEC.
To inform the discussions on funding, the Edinburgh TSI met with a group of Third Sector partners to scope priorities. This includes articulating the real consequences of making any cuts on the Sector and its ability to deliver outcomes with communities; seeking confirmation on the priority focus for the IJB in 2025/6, and inviting discussion on options around the best use of our joint resources through a process of co-design. These conversations will need to be ongoing. We welcome your views as to how best to shape them.
Edinburgh IJB engagement on Public Social Partnership
Any change to a way of working to a Public Social Partnership or some other commissioning model by the IJB demands an investment of time up front.
This time is needed to confirm commitment to co-design to ensure that any partnership is a partnership, and any working relationship is founded on clear conditions for success.
This needs an investment in learning from other PSP’s in the city, what worked, and what didn’t, and it needs clarity on roles and responsibilities. In the meantime, a clear transition arrangement needs to be set out, describing how current commitments and contracts are to be managed.
Following the November 1 meeting, the IJB have been reviewing budget and partnership proposals. They have invited a group of Third Sector representatives to discuss how to progress partnership working together on shared issues and challenges.
The purpose of the meeting is to start a conversation about how best to work together, who to engage and what success looks like. The next steps will need wider conversations within the sector and between the sector and the IJB, and we invite your views as to how best to shape this.
Reference Group Proposal
The Third Sector has important Board roles on the EIJB and other city institutions. However, at the EIJB meeting, Cllr Pogson asked if there was enough Third Sector representation on the Board.
A reformed Board may be a future possibility, but meanwhile, it is critical to be able to support the people who occupy these Board seats so the voices of the sector feed into them, support and challenge them.
This is particularly the case in the next year or so where there will be very challenging issues and decisions to consider, with significant impact for the Sector.
To try and make sense of where to best put attention around these issues, we have convened a small, embryonic group of sector people. We aim to build this into a Reference Group with representation from across the Sector to distil and amplify the voices of the sector around priority issues. This will evolve over the next few months, and we invite your collaboration.
Our initial sense is that the areas of focus are about:
Asserting value: articulating the impact of the sector with fair methods of measurement
Supporting resilience: co-designing ways of working for sector sustainability
Shaping investment: making the case for ongoing investment around sector need
Informing governance: supporting Third Sector Board seats on city partnerships
We have developed Draft Terms of Reference for this Group, which builds on the current issues around the IJB but also focuses on the Third Sector as a whole.
Next steps
In sharing this context and background, it is my intention to work collaboratively to find a solution to the real risks we are facing as a sector.
In this context, I invite you to get in touch with initial feedback on the role of the TSI in shaping the Reference Group. In the meantime, Edinburgh TSI colleagues will continue to convene the sector through forums, networks and meetings, alongside the Edinburgh Community Health Forum.
Together, we can also continue to highlight the risks and impact of this loss of investment in the third sector, both individually and collectively.
Please get in touch and get involved. We recognise that our strength is in working together and supporting each other across our rich, diverse and talented Third Sector. I look forward to working with you.
Invitation to Participate in Community Planning Transformation and Improvement Stakeholder Engagement Session
The Edinburgh Partnership agreed to look afresh at the role of Community Planning in Edinburgh to maximise the relationships between public sector agencies and the voluntary and community sectors to address poverty and inequality and the climate and nature emergency.
We need your views to help shape the future of community planning in Edinburgh.
These sessions aim to bring together key partners to discuss, plan, and drive forward positive changes for communities. Your insights and contributions are highly valued, and we would be pleased if you could join us.
Spaces are limited, so we encourage you to book your place as soon as possible to secure your spot at your preferred session.
To register, please email communityplanning@edinburgh.gov.uk with your name, contact details, and the date of the session you would like to attend:
Wednesday, 23rd October | 12:30 PM – 3:30 PM | St. Bride’s Community Centre
or
Thursday, 24th October | 10:00 AM – 1:00 PM | West Pilton Neighbourhood Centre
or
Monday, 28th October | 3:00 PM – 5:00 PM | Microsoft Teams
MS Teams Meeting on Tuesday 22 October 2024 from 6-7:30pm
In advance of Community Council elections in February 2025, we are reaching out to invite you to the above meeting to discuss how community councils and the Council can collaboratively work together to promote community councils.
Some of the areas we are keen explore are:
Positively communicating to the public who community councils are and the work they do.
Encouraging membership to community councils.
Promoting upcoming community councils elections in February 2025.
If you would like to attend, please use the MS Teams link below:
Edinburgh Libraries are developing a new Future Libraries Strategy that will provide a framework for service delivery and development for public and school libraries over the next five years.
To help shape the new strategy and inform future proposals for change, Council Committee agreed to carry out an engagement and consultation process to gather feedback from individuals, groups, and stakeholders across the city.
The first stage of the engagement process was successfully carried out earlier this year, and I’m pleased to let you know that the next stage of our “Future Libraries” consultation is now live and will run until 18 December.
As a valued stakeholder, we would appreciate your involvement and to hear your views and ask that you complete the consultation questionnaire which can be accessed here https://www.edinburgh.gov.uk/futurelibraries
Over 14,000 individuals, groups and organisations provided feedback in our initial engagement activity held between 26th January 2024 – 19th April 2024.
We have now considered the views and ideas that were gathered through this activity alongside our existing data on service use and knowledge of how the service operates and have used the information to shape our new draft Future Libraries Strategy 2024 – 2029.
The information has also helped to inform the identification of potential options for change to library opening hours and how the service manages events and activities. Both the draft Strategy and information about the potential options for change are available at the above Future Libraries website.
You can also find our Engagement Report there, which provides a summary of the findings from the engagement process. We hope you will find it of interest and that you might find some time to give us your views on the draft Future Libraries strategy and any proposals for change to opening hours and how the service manages events and activities by completing the consultation questionnaire.
We would also appreciate your support in ensuring the questionnaire is promoted widely and reaches as many people as possible including those who do not currently use library services. It would therefore be very helpful if you are able to let your service users, clients or group members know about the questionnaire and encourage them to provide us with a response.
Invitation to Participate in Community Planning Transformation and Improvement Stakeholder Engagement Sessions
The Edinburgh Partnership agreed to look afresh at the role of Community Planning in Edinburgh to maximise the relationships between public sector agencies and the voluntary and community sectors to address poverty and inequality and the climate and nature emergency. We need your views to help shape the future of community planning in Edinburgh.
These sessions aim to bring together key partners to discuss, plan, and drive forward positive changes for communities. Your insights and contributions are highly valued, and we would be pleased if you could join us.
Spaces are limited, so we encourage you to book your place as soon as possible to secure your spot at your preferred session.
To register, please email communityplanning@edinburgh.gov.uk with your name, contact details, and the date of the session you would like to attend.
Thursday, 10th October | 1:00 PM – 4:00 PM | Craigentinny Community Centre
or
Friday, 11th October | 10:00 AM – 1:00 PM | Goodtrees Neighbourhood Centre
or
Wednesday, 23rd October | 12:30 PM – 3:30 PM | St. Bride’s Community Centre
or
Thursday, 24th October | 10:00 AM – 1:00 PM | West Pilton N/hd Centre
or online
Monday, 28th October | 3:00 PM – 5:00 PM | Microsoft Teams
Background Information on the Edinburgh Partnership Transformation and Improvement Programme –
HOLYROODPresiding Officer Alison Johnstone will go to Glasgow next week as she continues her series of visits to all eight Scottish Parliament regions as part of marking the Parliament’s 25th anniversary.
The visit is an opportunity for the Presiding Officer to hear directly from local people about their reflections on the Parliament and their aspirations for its future. The Presiding Officer is seeking views on 25 years of devolution and how the Parliament has impacted local communities.
Taking place on Monday 30 September, the visit has been set up in collaboration with community organisations Glasgow Council for the Voluntary Sector and Willowacre Trust.
In the morning the Presiding Officer and Glasgow MSPs will meet with people who are supported by local community groups, voluntary organisations, and social enterprises. They will discuss the opportunities that exist for people to get involved in the Parliament’s work and will also hear about efforts to improve citizen engagement in the city.
In the afternoon, the Presiding Officer and MSPs will attend an interactive presentation of Willowacre Trust projects from community members. This will be followed by an opportunity to hear their views on the Parliament at 25 and what their priorities are for the future.
Speaking ahead of the visit, Presiding Officer Rt Hon Alison Johnstone MSP said:“I’m excited to continue our visits across Scotland to meet with local people and to hear their views on the Parliament and their aspirations for its future.
“Although in its 25 years the Parliament has become an established part of public life in Scotland, we know there is work to do.
“Having already visited the Highland and Islands region and the Borders, this visit to Glasgow is an opportunity to meet with local community groups to hear about the challenges facing them and how their Parliament can best meet the needs of their communities.
“Scotland’s Parliament belongs to its people and its vital their voices are heard and help shape the Parliament’s future.”
Linda Allan, Community and Support Services Manager at Willowacre Trust said:“We are excited to welcome the Presiding Officer and members of the Scottish Parliament to Willowacre Trust’s community centre at the heart of Glasgow’s bustling Barrowfield community.
“Our team works in partnership with a diverse range of residents, volunteers and organisations from the local area to provide services and host events that address the needs of residents and help encourage community togetherness.
“This visit will be a valuable opportunity for our community members to meet the Parliamentary Team, and to speak with them about their experiences and the issues that matter most to them.”
Ian Bruce, Chief Executive Officer, Glasgow Council for the Voluntary Sector (GCVS) said:“We look forward to welcoming people to this Scottish Parliament anniversary celebration with the Presiding Officer and MSPs.
“This event will contribute to people feeling that the Scottish Parliament is accessible to them, which is so important. It won’t be too serious, though, and we’ll make sure everyone has fun with a little help from our friends at Nemo Arts.”
