Finance Secretary calls for clarity as local authorities set their budgets
The employer National Insurance increase must be fully funded to ensure local authorities have the resources they need to serve their communities, Finance Secretary Shona Robison has said.
Ahead of an appearance before the local government committee next week, Ms Robison again called on the UK Government to provide urgent clarity over the funding to help the Scottish Government and local authorities finalise their budgets.
The Finance Secretary said: “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer National Insurance Contributions.
“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short.
“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.
“We know local authorities are already under significant financial pressure. This will only continue to build unless the UK Government reimburses us in full for their tax increase. Councils are in the process of setting their Budgets now, so the sooner we have clarity over this issue the better – this is needed urgently.
“The Scottish Government will continue to work closely with COSLA to press the UK Government to provide the funding needed to support public services in Scotland.”
The First Minister and President of COSLA wrote to the Chancellor on 3 January, supported by 48 public and voluntary sector organisations to raise concerns at the impact of the increase to employer National Insurance contributions and to seek clarity on funding.
COSLA has shared two new documents setting out high-level analysis of the Scottish 2025-26 Budget and what it means for Councils and essential local social care services.
What does the Scottish Budget mean for councils?
Following the Scottish Budget announcement earlier this month, we shared a short briefing setting out high-level analysis on what the Budget means for Scottish Local Government.
Commenting, COSLA’s Resources Spokesperson, Councillor Katie Hagmann, commented: “This Budget is a welcomed step in the right direction for Local Government and provides a small amount of additional uncommitted revenue and capital funding for 2025/26.
“However, due to the unprecedented financial challenges being faced by our councils, this additional funding may not be enough to reverse planned cuts to vital services across our communities.”
What does the Scottish budget mean for social care?
Our councils have increased real terms spend on social care by 29% since 2010/11 at the expense of other preventative, non-statutory services. However, rising operational costs, escalating demand for services, and high inflation mean that the need for greater funding is more urgent than ever.
The level of funding provided in the 2025/26 Budget will not resolve the unprecedented challenges being faced in local social care services.
COSLA’s Health and Social Care Spokesperson, Councillor Paul Kelly, added: “Without additional funding to increase capacity across all of our social care services, there is a very real risk that key services will not be able to transform to the scale that our communities require and deserve.
“COSLA and Local Authorities are ready and willing to work constructively to support improvement and reform in social care that is aligned to local needs and priorities, but this should be backed by the much-needed investment.”
The financial situation of the Edinburgh Integration Joint Board (EIJB) is very challenging. In 2025/26, the IJB seek to realise around £51m of savings. Future years will see further savings required, currently estimated to be £76m in 2026/27 and £105m in 2027/28.
These savings will be difficult and their impact will be substantial. So, managing change, and ensuring key services are delivered to communities will require collaboration by the IJB and city partners, including the Third Sector.
Reference Group
On November 1 2024, Third Sector representatives presented deputations to the EIJB challenging proposals around the Third Sector Grants Programme and an in-year cut (2024/2025). The IJB did not approve the proposal for the in-year cut with an alternative proposal being approved.
Following that meeting, the IJB invited Third Sector representatives to talk through concerns and identify areas to work together. To inform those meetings, EVOC and their TSI partners collaborated with the Edinburgh Community Health Forum and representatives of other Third Sector interests across the city to create a Reference Group.
The purpose of the Reference Group is to:
inform governance and city partnerships
assert the value of the Sector
shape investment
support change
distil the voices of the Third Sector to effectively represent the sector on the IJB
EIJB Engagement and Proposals
The Reference Group has rapidly considered the short-term issues around funding, and the longer-term issues of future partnership models, sharing a briefing note with the IJB on issues and options in early December. The engagement with EIJB has been positive given the difficult circumstances, and this positive engagement has resulted in an EIJB paper to the December Board which recommends:
That the Health Inequalities grants programme, due to end on 31 March 2025 should be extended for three months into 2025/26 which will help provide time for the organisations affected to adapt.
The Board support work currently underway to undertake a series of collaborative workshops which will inform some of the savings proposals and invest-to-save opportunities that will be submitted for consideration by the EIJB in March 2025.
In the current landscape this is a positive outcome for the Third Sector, informed directly by the voice, needs and priorities of the Sector.
City of Edinburgh Council Engagement and Proposals
Given the challenges to funding for the Third Sector and the impact cuts will have to the viability of Third Sector Organisations, the Reference Group have also argued the need for a cross city partnership approach to investment.
Following the November 1 EIJB meeting, the TSI wrote to the Chair of the EIJB, the Chief Executive of City of Edinburgh Council and NHS Lothian asserting the need to [a] reset investment [b] reform ways of working [c] repair relationships. In the immediate term, a key priority is to secure a commitment from City of Edinburgh to invest to mitigate the risks to critical and anchor organisations.
On December 10 the Council Policy and Sustainability Committee considered and approved a proposal that recognised that the Council may need to provide core or foundational funding to stabilise vital third sector organisations. The TSI with ECHF collaborated to present a joint deputation, welcoming the Council proposal, and offering support.
Council officers were instructed to:
Work on a briefing paper for the Council’s political groups on what the Third sector needs now, specifically transitional funding, medium term, ahead of the Council setting its budget in February;
Undertake a review of all grant funding, exploring the provision of longer term, sustainable funding;
Work with the Edinburgh Partnership and Third Sector to co-design solutions, and agree terms of reference for a short life group and report back to Policy and Sustainability Committee in March.
Priorities: December EIJB meeting and Future Planning
The Reference Group will continue to meet and shape the next steps. An immediate priority is to agree on Terms of Reference and confirm representatives in the Group. We will be sharing a set of proposals before Christmas for your consideration.
A strong voice is essential to shape the long-term relationship with the EIJB and in particular the workshop series in spring 2025.
The Edinburgh TSI with EVOC and others from the Reference Group will support the paper to the EIJB on December 17 on progress on the Third Sector Grants Programme and the next steps in working collaboratively with the Sector, and also with the City of Edinburgh Council.
If you need any further information in advance of the IJB meeting tomorrow (Tuesday 17 December), please get in touch with us or reach out to any member of the Reference Group.
We will also provide regular briefings on progress, through the fortnightly EVOC E-news and targeted updates on key information as necessary.
Hundreds of individuals and organisations to benefit
Culture Secretary Angus Robertson has said an additional £34 million in culture and arts spending next year will be “game-changing” for the sector.
Wednesday’s draft Scottish Budget 2025-26 will see culture and arts spending increase by £34 million, with £20 million of this being channelled through Creative Scotland for its competitive multi-year funding programme for artists and cultural organisations.
Speaking at the National Gallery of Scotland, Culture Secretary Angus Robertson said significant levels of public investment in the culture and arts sector would be coupled with an examination of the structures around culture funding to ensure as much money as possible goes directly to artists and organisations.
He confirmed that the review of Creative Scotland’s remit and functions will begin early next year and will aim to publish its recommendations in summer 2025.
Culture Secretary Angus Robertson said: “Scotland’s arts and culture are at the very soul of our nation. They speak to how we see the world, how we share ideas, and how our people can give expression to their hopes.
“Our draft budget could not be clearer in our steadfast support for Scotland’s arts and culture sector. We aim to provide an additional £34 million next year to bolster the sector. This is a game-changing increase.
“This will enable Creative Scotland to roll-out its multi-year funding programme – ensuring that the highest ever number of artists and organisations receive regular funding.
“We also plan to increase funding for Screen Scotland, give uplifts to our National Performing Companies, double our Festivals EXPO funding, provide above inflation increase to Sistema and the Youth Music Initiative, and restart the Culture Collective programme alongside with a range of other activity.
“This budget brings us half way to reaching our five-year commitment of a recurring £100 million increase for the sector in just two years. For 2026-27, subject to the normal budget processes, our aim is to deliver a further £20 million increase.”
The draft Scottish Budget 2025-26 was published on 4 December 2024. It commits an additional £34 million resource funding to arts and culture in Scotland.
Within this, a further £20 million will be provided to Creative Scotland for its multi-year funding programme in 2025-26. Funding will also increase by £4.5 million for Scotland’s National Collections and £1 million for the National Performing Companies.
The draft Scottish Budget 2025-26 also commits to an increase of £4 million funding for Scottish Festivals, doubling the EXPO Festival Fund to expand its reach beyond festivals in Edinburgh and Glasgow as well as providing funding for the Festivals Partnership. There will also be an additional £2 million for Screen Scotland to support work to attract international investment and large-scale productions to Scotland.
The Culture Collective programme will be restarted with £4 million to benefit Scottish communities, community organisations, individual artists and freelancers.
In addition, £270,000 has been allocated to enable the creation of a single digital library interface which directs people to Scotland’s public libraries, allowing the public to access information, online content and a national e-resources lending area to ensure equitable access to information and reading material across Scotland.
There will also be £4 million allocated for a new Scottish Culture & Heritage Capacity Fund. This fund recognises the significant challenges faced by heritage and culture organisations across Scotland.
THINK TANK AND FORMER COUNCIL CHIEF EXECUTIVES JOIN FORCES
Reform Scotland and the Mercat Group collaborate on ideas for local decentralisation
Former local authority chiefs ask: “Has Holyrood become Scotland’s biggest Council?”
Reform Scotland, the non-partisan think tank, and The Mercat Group, an informal network of former chief executives of Scottish local authorities with over 220 years of public service between them, including 70 years as chief executives, are today announcing a collaboration.
Jointly, Reform Scotland and The Mercat Group will advocate for decentralisation of power from the Scottish Parliament to local authorities, along the lines originally envisaged by the architects of the devolution project.
The collaboration begins today with an article – Parliament or Council?: 25 years of evidence– written on behalf of the Mercat Group by Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar, in which he states that “any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh”.
Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar said:“Any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh. In fact, all the evidence points to growing centralisation of power in Holyrood. That is not good for local democracy, nor does it seem like good governance.
“There is now a need to revisit and reset the way all public services in Scotland are organised, delivered and financed. We should create a Scottish Civic Convention to take forward the public conversation necessary to conduct such a review.
“There may be other options but the central aim should be to develop a transition plan to ensure decisions on the delivery of all public services are taken at the lowest local level consistent with democratic and financial accountability.
“Scottish local government is in danger of becoming the delivery arm of the Scottish Government; indeed some would argue we have already reached that position. We might fairly ask: has Holyrood become Scotland’s biggest council?”
Chris Deerin, Director of Reform Scotland, said:“At a quarter-century old, now is the time to re-examine those areas of devolution which have not delivered as we all hoped they would. Local government is one of these.
“Other countries enjoy the benefits of properly empowered local government, fulfilling most of the day-to-day operational roles upon which people depend, with central government adopting a more strategic outlook.
“In Scotland, we are failing to realise the potential of local freedom and diversity. Decentralisation is long overdue, and we are delighted to be teaming up with the Mercat Group to generate the ideas needed to make it happen.”
Bill Howat’s blog – Parliament or Council?: 25 years of evidence – can be read here
Calls come as Holyrood Committee publishes report on public funding to voluntary organisations
Short-term funding cycles are creating financial instability and diverting time and resources away from charities’ delivery of services, according to a pre-Budget report by the Scottish Parliament’s Social Justice and Social Security Committee.
At the outset of the Committee’s inquiry the Scottish Council for Voluntary Organisations painted a stark picture of the challenges faced by charities in Scotland, identifying a 2.1% real terms decrease in Scottish Government funding in the previous budget, against a backdrop of increased inflation and high demand for services.
In recognition of the critical role charities play in supporting Scottish society, the Committee’s report calls on the Scottish Government to look at options to prioritise three-year-funding and include provisions for inflation-based adjustments.
During the inquiry, witnesses raised concerns about inconsistency, complexity and a lack of transparency in the application process for funding. In response, the Committee’s report recommends that the Government, and its partner grant awarding-bodies, streamline and standardise application processes and improve the transparency of the grant-making decision process.
The Committee also heard about the challenges some charities have faced because of delays to funding decisions and payments, issues the Committee wants the Scottish Government to resolve.
Bob Doris MSP, Deputy Convener of the Social Justice and Social Security Committee, said: “The Scottish Government has a commitment to provide fair funding for the essential work done by Scotland’s charity sector.
“We make it clear in our report that this commitment should be recognised in the upcoming budget, so that the sector’s vital work can be safeguarded. We call on the Government to prioritise strengthening its approach to multi-year funding and improving its processes.
“Whilst we acknowledge the Scottish Government’s ability to agree to multi-year funding when it does not know what funding it will receive from the UK Government for subsequent years, our committee has made practical suggestions to overcome these challenges.
“We believe that implementing the straightforward measures outlined in our report, including multi-year funding, could positively impact the effectiveness of a sector that does so much to help so many.”
Responding to the report, Scottish Council for Voluntary Organisations (SCVO) Chief Executive Anna Fowlie said: “I welcome today’s report, and the committee’s recommendations. Throughout their inquiry, the Committee heard from witness after witness of how the practice and culture around public funding for voluntary organisations is broken.
“Too often and for too long voluntary organisations providing vital services to people and communities across Scotland contend with budget cuts, short-term funding cycles, late payment, incoherent decision-making, poor communication, inadequate grant management and more. That must end.
“The voluntary sector needs a funding landscape that is fair, flexible, sustainable, and accessible – as long-advocated by SCVO and recommended by the committee today.
“At a time when many voluntary organisations are facing extreme financial difficulties, these long-standing calls are more essential than ever.
“The prize is a sustainable sector, strong public services, and resilient communities – one the Scottish Government must grasp with both hands.”
Ansvar Insurance is delighted to launch its search for three outstanding charities to support, offering a generous donation of £75,000 to each over the next three years.
They will be looking to support charities that focus on helping children and young people to make positive lifestyle choices. This could include promoting safety, sports and exercise, mental wellbeing, or healthy eating, and registered charities across Edinburgh are being invited to nominate.
From all the nominations received, three charities will be selected to benefit from funding, each receiving £25,000 per year for three years, starting in January 2025.
Charities interested in applying are asked to initially submit a short application explaining their work and how the funding would be utilised, whether that’s to support an ongoing project or one that is about to begin. Applications can be made directly via the Ansvar website – Programme of Giving 2024 – Ansvar.
Sarah Cox, Managing Director of Ansvar, the expert insurance provider for the charity, not-for-profit, care and faith sectors, commented:“As a specialist insurer for the charity sector, we witness the incredible work these organisations do every day. Our Programme of Giving is a way for us to give back and provide support, encompassing our Community Hub, which is free, bookable office space we offer to charities and not for profit organisations, our colleague volunteering and fundraising, and our three-year cycle of grant giving.
“Previously, we offered £45,000 over three years, but we understand that numerous challenges have made it harder for charities to meet the needs of the people they serve. As a result, we have increased our funding to £75,000 for each charity. We hope this will make a significant difference to their work and help them continue to support young people.”
Charities can nominate themselves via the Ansvar website from now until to Monday 4th November. The winning charities will be notified by Friday 13th December.
Ansvar is a member of the Benefact Group, a charity-owned specialist in financial services. As the UK’s third-largest corporate donor, the Benefact Group strengthens Ansvar’s dedication to supporting the wider charitable community.
Scotland intends to support inclusive education in Malawi, Rwanda and Zambia with funding of up to £12.5 million over the next five years, First Minister John Swinney has announced.
The funding will support two programmes, the first of which aims to remove barriers to quality education for out-of-school children with disabilities and additional support needs. The second programme will support girls and women to complete secondary education and transition to tertiary or technical education.
The First Minister met the High Commissioners of Malawi and Zambia, and the Deputy High Commissioner of Rwanda during a series of engagements in London yesterday (15 October), where he re-affirmed the Scottish Government’s commitment to collaborative international development with its partner countries.
The First Minister said: “This funding aims to help overcome some of the persistent barriers faced by women, girls and children with disabilities, to ensure they have equal access to education, and are fully included in the social and economic life of their communities.
“The Scottish Government has prioritised this work as part of our commitment to international development and good global citizenship, working in partnership with our counterparts in Malawi, Rwanda and Zambia to meet the aims of the UN Sustainable Development goals.
“So I am very pleased to confirm this additional funding in support of those efforts. I am also grateful for the work of Oxfam, Link Education International and local partners in all three countries who are delivering these programmes to help some of the world’s most marginalised learners, who have the same right to a quality education as anyone else.”
H.E. Macenje Mazoka, Zambia High Commissioner to the United Kingdom said: “The Scottish Government’s ongoing commitment to inclusive education in Zambia is a testament to the strong bonds between our nations.
“Their support for programs that enhance access to quality education for all, especially for marginalised groups, aligns perfectly with Zambia’s vision for equitable development.
“We look forward to strengthening the positive impact this partnership will continue to have on our education system and the lives of Zambian students, particularly those who are the most vulnerable.”
Three good causes across the East of Scotland have secured a share of a £25,000 funding pot, thanks to Scotmid’s Community Connect initiative.
The funds were allocated to The Rosebery Centre, Leuchie House and Play Therapy Base following a vote by Scotmid Members.
The Rosebery Centre, based in Polbeth, West Lothian, has been awarded £15,000. The charity supports older people living with dementia in the community. This funding will be used to provide nutritious healthy lunches and snacks, offering members valuable time to socialise and helping to combat the isolation they face due to their condition.
Leuchie House, based in East Lothian, has been awarded £5,000. The charity provides people living with neurological conditions and their families with access to short respite breaks. The funding will go towards the tailored activities & entertainment provided with every break helping to improve health, enables independence and reduces loneliness.
The final good cause group in the East of Scotland to have been awarded £5,000 funding is Play Therapy Base. The Dalkeith based charity works with children aged 3-14 who are experiencing emotional distress.
Services include weekly 1-1 play & art sessions with experienced therapists, either in the community or within one of the dedicated playrooms. Funding will contribute to the running and resourcing of these playrooms which are used by around 60 children each week.
Anne Marson, Centre Manager at The Rosebery Centre, said:“We are overwhelmed with this generous donation from Scotmid.
“The support will enable us to continue providing healthy meals to members while they socialise together, significantly improving the quality of life for dementia patients.”
Claire Williams, Head of Fundraising at Leuchie House, said:“We are so grateful for this incredible contribution from Scotmid.
“This support will enable Leuchie to reimagine respite as a service that delivers more, beyond the break, to improve the health of our guests, enable their independence and reduce the loneliness experienced by many as a result of their condition.”
Linda Cuthbert, Service Manager at Play Therapy Base, said:“Thanks to Scotmid’s generous funding, we can keep providing life-changing play and art therapy sessions to children who need it most.
“This £5,000 will go directly toward maintaining our playrooms, where dozens of young people find comfort, support, and emotional healing every week.”
Keen to support local good causes? Pop into your local Scotmid and pay £1 to become a member.
Communities across Scotland, including groups in the Hebrides, Shetland and two projects in Edinburgh are to benefit from a share of £1.5 million Scottish Government funding aimed at supporting community renewable energy generation projects.
A total of 19 community groups from across Scotland, including groups in Eigg, Bressay, Tiree, Fair Isle, Barra and Arran, will share funding from the Community Energy Generation Growth Fund. This will support them to develop their own renewable energy projects, including installing wind turbines and solar panels to meet local needs.
The organisations will also be able to earn money from their projects by, for example, selling the excess energy generated back to the grid.
The fund forms part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), which to date, has awarded more than £65 million in funding to over 900 renewable projects across the country.
The pilot scheme will inform longer-term support for community-owned energy generation projects through CARES.
Acting Minister for Climate Action, Alasdair Allan said: “I am pleased the fund has provided support to so many locally owned energy generation projects – particularly those in our island communities.
We are fully committed to ensuring that all areas of Scotland are able to thrive and contribute to a growing sustainable economy and renewable projects like these will help reduce energy costs, generate revenue and help drive Scotland’s transition to net zero.
“It is crucial that communities are at the heart of Scotland’s ambition to become a renewable energy powerhouse – and this fund helps to ensure that they can lead and benefit from this era defining transition.”
Director of Eigg Electric Labhaoise McKenna said: “Eigg Electric is delighted to be a recipient of the Community Energy Generation fund. As a pioneer of community energy generation, we value this support to help us to plan for and further develop our renewable system.
“This fund will help us build a more resilient island community and help us on our journey to 2030 carbon net zero.”
Fort Seafield And Wallacetown Community Association
Installation of solar panels on three school buildings in Wallacetown, with power generated sold to the Local Authority. The funding will be used to fund purchase of equipment.
£151,512
Arran Community Renewables
A 4 MW solar farm on Arran. Funding will be used for grid connection, a planning application and project management costs.
£220,828
Radical Renewable Art and Activism Community Energy Society Limited, Glasgow
Rooftop solar PV on 7 community buildings and 2 local businesses in Glasgow. Funding will be used for site permissions, detailed design work and consents.
£68,850
Fife Communities Climate Action Network CIC
Ground-mounted solar PV across 4-6 sites. Funding is for grid connection, legal agreement, planning costs and technical development.
£58,074
Arnish Community Windfarm Ltd
Up to seven 4-5MW wind turbines. Funding is for a grid connection.
£38,000
Sunart Community Renewables Ltd
300kw ground mounted solar. Funding is for feasibility work.
£17,844
Sunart Community Renewables Ltd
800kw wind turbine. Funding is for feasibility work.
£20,884
Radio City Association, Kilbirnie
A 3MW wind turbine project. Funding is to support feasibility work.
£10,000
Carluke Development Trust (on behalf of the ONECarluke Community Energy Project up).
Rooftop solar and battery storage at four sites. Funding is for equipment and installation costs.
£233,260
Tiree Community Enterprise Limited
Solar PV array with battery storage, to support EV storage and resilience. Funding sought for equipment and installation costs.
£113,500
Eigg Electric Ltd
Three 100kwh wind turbines and infrastructure upgrade to support increased capacity, to support decarbonisation of Eigg by 2030. Funding is to support grid infrastructure upgrades.
£86,766
Knock and Swordale Community Company Limited
3-6MW wind turbine. Funding is for options appraisal and planning work.
£20,000
Fair Isle Electricity Company Ltd
Ground mounted solar array to provide power to the Fair Isle Bird Observatory. Funding is for equipment and installation costs.
£137,361
Edinburgh Community Solar Ltd (Edinburgh Community Solar Co-op)
2.5MW solar array on 16 council sites, including 7 schools and a number of leisure buildings. Funding is for development costs.
£84,960
Porty Community Energy
Solar bond project, exploring putting solar on 6 community buildings. Funding is for a feasibility study and work on consents and permissions.
£44,088
Zero Carbon Daviot
1MW ground mounted solar PV. Funding is to support feasibility work.
£15,000
Barra and Vatersay Community Ltd
Repowering for Barra community turbine, with learning to be applied to other repowering projects. Funding is to explore an engineering solution to support repowering.
£23,000
Huntly Development Trust Limited
A wind generation project on Gartly Moor, forming part of a wider project of up to 20MW of wind, solar and potentially green hydrogen. Funding will be used for grid and planning, including addressing aviation issues.
£138,141
Blairgowrie and Rattray Development Trust
Ground and/or roof mounted solar. Funding is for feasibility work.
£10,000
Bressay Development Ltd
Solar PV and battery storage on a brownfield site. Funding is for feasibility work.
