LGIU – The NEN – North Edinburgh News

King’s Speech reaction

Speaking after the King’s Speech, Scottish Secretary Ian Murray said: “This is a King’s Speech which will deliver the change our country needs. It will deliver for all four nations of the UK and all four corners of Scotland.

“We have a bold and ambitious legislative programme which will ensure we deliver on our mandate.

“Our plans will deliver growth and jobs for our economy. It will establish GB Energy, a publicly owned energy generation company which will create jobs and cut bills for good, and establish a National Wealth Fund to invest in the industries and jobs of the future.

“The King’s Speech also delivers the biggest transfer of power towards working people in a generation, with new rights on sick pay and redundancy, and better pay. It will ban exploitative zero hour contracts and increase the minimum wage to a real living wage. A better deal for working people, with less insecurity and more money in their pockets, is the first step towards reducing poverty in Scotland and across the UK.

“We have been clear that we want to reset our relationship with the Scottish Government, and to work together to deliver better outcomes for people.

“Our rail ownership bill will ensure that ScotRail is kept in public hands, and we want to work with the Scottish Government to pass laws that will reduce the availability of addictive vapes to young people.

“We promised change. This King’s speech demonstrates we are rolling up our sleeves and delivering that change.”

Bills which will apply in Scotland:

Renters Rights Bill [only in respect of discrimination against tenants on benefits or with children]
National Wealth Fund Bill
Pensions Schemes Bill
Planning and Infrastructure Bill [some measures]
Employment Rights Bill
Passenger Railway Services (Public Ownership) Bill
Railways Bill
Bank Resolution (Recapitalisation) Bill
Product Safety and Metrology Bill
Border Security, Asylum and Immigration Bill
Armed Forces Commissioner Bill
Digital Information and Smart Data Bill
Draft Audit Reform and Corporate Governance Bill
Great British Energy Bill
Sustainable Aviation Fuel (Revenue support Mechanism) Bill
Terrorism (Protection of Premises) Bill [Reintroduced]
Draft Equality (Race and Disability) Bill
Tobacco and Vapes Bill [Reintroduced]
House of Lords (Hereditary Peers) Bill
Cyber Security and Resilience Bill
Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill
Lords Spiritual (Women) Act 2015 (Extension) Bill
Budget Responsibility Bill
Hillsborough Law [Public Candour] Bill [TBC – territorial extent to be determined]

Scotland’s Deputy First Minister Kate Forbes has reiterated the Scottish Government’s intention to work collaboratively with the UK Government to deliver on shared ambitions for Scotland.

Ms Forbes commented on the King’s Speech: ““The Prime Minister has said he wants to reset the relationship with the Scottish Government, respect the devolution settlement and work constructively together.

“I am pleased to see this approach reflected in the King’s Speech, and we will support the opportunities it presents to improve the lives of people in Scotland.

“I look forward to early and meaningful engagement on UK Bills, including the New Deal for Working People. We have been clear in our opposition to the inappropriate use of zero hours contracts and other types of employment that offer workers minimal job or financial security.

“We also welcome the Tobacco and Vapes Bill being taken forward. This is an important step forward in public health, and a four-nations approach will offer more certainty for businesses and consistency for consumers.

“The priorities of the Scottish Government for the year ahead will be announced in the First Minister’s Programme for Government, when he will set out how we will deliver for communities right across the country.”

Commenting on the King’s Speech, STUC General Secretary Roz Foyer: “Pomp and pageantry aside, this is a more progressive programme for government than we’ve seen after 14 years of Tory mismanagement.

“The New Deal for Working People can be the start of a new chapter for workers. If enacted fully, the New Deal gives rights, security and respect to working people throughout the UK. It must now be delivered in full without delay. It is right this is accompanied by a new industrial strategy council.

“We look forward to working with the UK Government to ensure this body is representative and impactful, creating a minimum floor of working rights across every nation of the UK. It’s further welcome that the UK Government finally seeks to legislate further to end the scourge of race-based pay discrimination – working people of all nationalities deserve nothing less.

“This will, undoubtedly, be aided if the Labour Government sticks true to its pledge and seeks to revitalise the devolution settlement through the Council of the Nations and Regions.

As part of this, we must see further powers devolved to the Scottish Parliament, including powers over employment, migration and more.

The siting of GB Energy in Scotland is very positive. We hope it will become more than an inward investment tool and will develop a strategy for direct public ownership to deliver the infrastructure and supply chain jobs we so desperately need.

“The commitment to bring railways back into public ownership is a long-standing demand of trade unions who have fought against the carnage brought by privatisation.

“Economic growth is a welcome, central tenant of this government’s mission. But that cannot be done through the exploitation of working people. The Prime Minister has a job on his hands to restore standards and investment to public life and public services. With the Scottish Parliament elections just around the corner, we look forward to him delivering on his pledges for workers in Scotland.

Commenting on today’s King’s Speech Joanna Elson CBE, Chief Executive of Independent Age said: “Today’s King’s Speech outlined the UK Government’s focus on national renewal and it’s important that this renewal reaches the two million older people currently living in poverty across the UK.

“We are pleased to see the UK Government commit to improving private pensions for future older people who are able to save, including better access to small pension pots, but we also need action for the 150,000 pensioners currently living in poverty in Scotland. Ensuring people have enough money to live with dignity in later life is fundamental in a compassionate society and an essential part of social renewal.

“Right now, we need to see action to increase uptake of social security support for older people on a low income. Currently Pension Credit isn’t received by around a third of older people who should be getting it. In the longer term the UK Government should lead a cross-party review to establish what level of income is needed to avoid poverty in later life and ensure everyone is able to reach it. We are also calling on the UK Government to establish a consistent national social tariff for energy.

“The Scottish Government can also act to reduce poverty in later life, a key first step would be announcing a plan to reduce pensioner poverty in the Programme for Government – expected in September.

“Going forward, in both Westminster and Holyrood, it’s essential parliamentarians work towards the aim of making poverty in later life a thing of the past.”

More than 60 leading local government figures and influential academics came together today for the Saving Local Government Finance Summit to reflect on the legislative commitments in the King’s Speech and to deliberate on how the Government plans to carry out its promises for local government, including devolution and planning reform.

Despite optimism in the air, the consensus at the summit was clear: without significant reforms in funding, particularly for social care, local councils cannot maximise their role in delivering the government’s Five Missions. While not in the King’s Speech for immediate legislative attention, reforming local government funding was considered most pressing, particularly to stem the flow of bankruptcies.

Reflecting on the King’s Speech, Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Government’s early local government commitments are positive, and the sector welcomes multi-year funding settlements, the conclusion of competitive bid funding and a more collaborative approach from the new government.

“However, the elephant in the room is what’s not being said: local government funding reform. WIth half of all councils at risk of going bust in the next parliament, now is the time to provide sustainable funding and stem the flow of bankrupt boroughs.”

In reaction to the devolution commitments, Dr Carr-West, Chief Executive, LGIU, said: “The regions must have a say in how devolution is rolled out with bespoke solutions available: what works for Cumbria may not for Chingford.

“And while much attention has been on the role of metro mayors, especially with the introduction of the new council of nations and regions, it is essential that central government listens to other democratically elected local leaders.

“Underpinning any devolution roll-out is trust. Central government needs to trust its local counterpart to do its job. Devolution should also help councils win back the trust of the people they serve so that they can build consensus for difficult and contentious decisions that are increasingly necessary.”

On planning reform, Dr Carr-West said: “The briefings before today have pulled in different directions.

“On the one hand, there were those saying the government will liberate councils, by streamlining the planning process, empowering and working together with local leaders to build new homes where local communities want them.

“On the other hand, there were those who claimed the government aimed to bind councils to unachievable targets imposed by the centre.

“As it is, the details we have now are still limited and we’ll need to see – and contribute to – how the plans develop. There is a huge opportunity here to open up planning and expand local growth.”

Specifically on social care, Dr Carr-West said: “The funding of social care is a perennial thorn in the side for every government, central and local.

“This is an issue that demands a solution, and although there was no mention of legislative reform in the King’s Speech, the proposed Royal Commission leaves a vital opportunity to reconsider how social care is funded with local government, service providers, and service users as central to the consultation.”

General Election: Change Starts Now?

Campaigning organisation 38 Degrees said: “This is a momentous election. It is a message from across the UK that people want change. But today is not progress – it is just the chance to deliver it. Labour have won big on a message of change. Now they have to make that change real.

Commenting on the result of the General Election, STUC General Secretary Roz Foyer said: “A new dawn has broken. It cannot be a false one.

“We congratulate Labour on its victory. The new Government can offer hope to workers after 14 years of Tory attacks on our communities, our people and our public services. Through cooperation with the Scottish Government, we can invest in jobs and services.

“The change that the new Prime Minister offered during the campaign must start now. This is day one of his Labour Government. We need decisive action to turn our back on the austerity-driven, public service-slashing, trade union-attacking ways of the Tory past.

“It’s time to rebuild. We will work with the Prime Minister to deliver a progressive Scotland that delivers for working people. He must now deliver for us.”

Responding to the result of the UK general election, David McNeil, SCVO Strategic Director of Development, said: “I would like to offer my congratulations to Keir Starmer on his appointment as Prime Minister.

“There is a pressing need for a more humane politics that puts people and communities first. The new government must move quickly to deliver just that.

“Everyday charities, community organisations and faith groups across Scotland deal with the consequences of decisions made at Westminster – on immigration, social security, employment law, the economy and more.

“Our sector holds a wealth of experience in addressing major societal issues. The knowledge we hold should be seen as an asset to policy and practice design from the outset. This is an opportunity that the new UK government must grasp with both hands.

“It is welcome that, over the weekend, the new Prime Minister and First Minister of Scotland met to commit to improving the relationship between the Scottish and UK Governments. It is our hope that this reset in relations will benefit voluntary organisations across Scotland, and the communities and people that they serve.”

Jonathan Carr-West, Chief Executive, Local Government Information Unit said: “As we witness a change of government, we should be proud of our democracy and grateful to the electoral administrators who make it all happen and to all the candidates, winners and losers, who put themselves up for election.

“We offer special congratulations to all the councillors and council leaders entering parliament.

“We know that local government stands ready to work with the new government and we offer a reminder that national success has local foundations. Labour has set out clear missions for government but these can only be achieved in partnership with local democratic institutions.

“We congratulate the new government and we urge it to set out a new relationship with councils across the country based on genuine collaboration and parity of esteem.”

The Fire Brigade Union said: “Finally, after 14 years of misery, the Tories are gone. Now the work begins to undo the destruction they caused and improve working people’s lives.“

COSLA’s President, Councillor Shona Morrison, has written to the new Prime Minister, Sir Kier Starmer and the Secretary of State for Scotland, Ian Murray, following the announcement of the results of the UK 2024 General Election.

Councillor Morrison said: “Firstly, I would like to extend my congratulations to the new Prime Minister, Sir Kier Starmer. Today I have written to the new Prime Minister and the Secretary of State for Scotland outlining some of the key issues faced by our local government members and the communities they represent.

“We will welcome opportunities to work closely with the UK Government and Scottish Government as partners to improve the wellbeing of people in our communities, continue on the vitally important journey towards a just transition to net zero, and ensure that those in our communities facing the most difficult challenges are fully supported by their local services.

“Our membership, Scotland’s 32 Councils, are the closest sphere of government to people in our communities, and deliver essential services for those communities every day.

“The incoming Government must listen to local government, take into account of our concerns and expertise, and work in partnership with us to ensure there is fair funding and empowerment to make the most effective decisions for the people we are elected to represent.”

Nominations open for the 2024 Cllr Awards

Do you know a councillor whose unwavering dedication deserves national recognition? Nominations are now open for the 2024 Local Government Information Unit (LGIU) and CCLA Cllr Awards – the only ceremony that celebrates the outstanding contributions of councillors across England, Wales, and Scotland.

The Cllr Awards shine a light on the achievements of local elected representatives who have made a tangible impact in their communities. Winners in England & Wales will be announced at the illustrious Guildhall in London while winners in Scotland will be revealed at the esteemed City Chambers in Edinburgh this winter.

The 2024 Cllr Awards feature five categories: Community Champion, Leader of the Year, Young Councillor of the Year, Innovator of the Year and Lifetime Legend.

Nominations are open to anyone – whether you’re a member of the public, a fellow councillor, or a council officer – who wishes to acknowledge a councillor’s exceptional commitment to improving their community and achieving remarkable results over the past year.

Submitting a nomination is free and takes just seven minutes. Applicants must provide details about the nominated councillor, outlining why they deserve recognition and how their initiatives have positively impacted the community.

Nominations close on Friday 13 September 2024, and the shortlisted candidates will be announced in the autumn.

Once again this year, the awards will also shine a spotlight on the remarkable contributions of councillors from around the world through the Global Local Cllr Showcase. This special presentation celebrates councillors worldwide whose projects, engagement, and representation have made a significant difference in the communities they serve.

For more information and to submit your nomination, please visit the official website.

Jonathan Carr-West, Chief Executive, LGIU, said: “The LGIU is proud to once again host the annual Cllr Awards, paying tribute to our locally elected representatives and sharing examples of the innovation and dedication our councillors demonstrate day in day out.

“Local communities rely on councillors, whose positive contributions impact our daily lives in many ways, from maintaining streets to funding community projects, shaping the character of our towns.

“Often working tirelessly behind the scenes, elected members frequently go unnoticed by many, making the Cllr Awards essential in highlighting their invaluable work in 2024.

“We eagerly anticipate a wave of nominations this year and look forward to hearing the remarkable stories behind them. These awards are made possible through the generous support of founding partners, CCLA.”

Mixed response as 2024-25 Scottish Budget unveiled

‘Targeted funding for people and public services’

A £6.3 billion investment in social security and more than £19.5 billion for health and social care form the heart of the Scottish Budget for next year, alongside record funding for local authorities and frontline police and fire services.

With targeted funding to invest in public services and protect the most vulnerable, the Budget underpins the social contract with the people of Scotland, Deputy First Minister and Finance Secretary Shona Robison told Parliament. She also outlined policies to grow the economy and progress the commitment to deliver a just transition to net zero.

Difficult decisions have been required to prioritise funding for the services people rely on in the face of a deeply challenging financial situation, Ms Robison added.

The 2024-25 Scottish Budget includes:

£6.3 billion for social security benefits, which will all be increased in line with inflation. This is £1.1 billion more than the funding received from the UK Government for devolved benefits in 2024-25
£13.2 billion for frontline NHS boards, with additional investment of more than half a billion – an uplift of over 4%
record funding of more than £14 billion for local government, including £144 million to enable local authorities to freeze Council Tax rates at their current levels
more than £1.5 billion for policing to support frontline services and key priorities such as body-worn cameras
almost £400 million to support the fire service
£200 million to help tackle the poverty-related attainment gap, almost £390 million to protect teacher numbers and fund the teacher pay deal, and up to £1.5 million to cancel school meal debt
almost £2.5 billion for public transport to provide viable alternatives to car use, and increased investment of £220 million in active travel to promote walking, wheeling and cycling

The Finance Secretary said: “It is an enormous privilege to present my first Budget. A Budget setting out, in tough times, to protect people, sustain public services, support a growing, sustainable economy, and address the climate and nature emergencies.

“At its heart is our social contract with the people of Scotland, where those with the broadest shoulders are asked to contribute a little more. Where everyone can have access to universal services and entitlements, and those in need of an extra helping hand will receive targeted additional support.

“This Budget is set in turbulent circumstances. At the global level the impacts of inflation, the war in Ukraine, and the after-effects of the pandemic continue to create instability. In the UK the combined effects of Brexit and disastrous Westminster policies mean that we are uniquely vulnerable to these international shocks.

“We cannot mitigate every cut made by the UK Government. But through the choices we have made, we have been true to our values and rigorous in prioritising our investment where it will have the most impact.

“We choose investment in our people and public services. This is a Budget that reflects our shared values as a nation and speaks to the kind of Scotland that we want to be.”

RESPONSES:

Responding to the Scottish Budget, STUC General Secretary Roz Foyer said: “With Westminster induced pressure on public spending in Scotland, we’re pleased that the Scottish Government has listened to the STUC and introduced a higher rate of tax for those on higher incomes.

“This represents a markedly positive approach which should be recognised. Equally, taking a more proportionate approach to rebates for business speaks to a Government which recognises the importance of the public sector to growing the economy.

“However, the Scottish Government’s Council Tax freeze and its unwillingness to countenance more ambitious tax reform has left a hole it was never going to be able to fill. High-quality, fully funded public services must be at the heart of a well-being economy and we cannot countenance any cuts – spun and packaged up as ‘reforms’ – which act as a barrier to that goal. Government should be under no illusions on this. The continuation of the regressive council tax simply damages our ability to support local government and those most in need.

“It is disappointing to see opposition parties failing to make any demands of government save for calling, impossibly, for more services but lower taxes. To this extent the whole of the Parliament is letting people down. We have to start of using the full powers of our Parliament to deliver tax reforms aimed at wealth and property, reforms which if implemented could raise £3.7 billion tax.”

Responding to the 2024/25 draft Budget, SCVO Chief Executive Anna Fowlie. said: “The draft Budget represents a missed opportunity to set out vital support for Scotland’s voluntary sector – at a time when it is being squeezed by the cost-of-living and running costs crises.

“While we welcome the Scottish Government’s commitments to move towards Fair Funding for Scotland’s voluntary sector by 2026, there was little evidence of that today.

“The UK Government delivered a modest but welcome package of running costs support for voluntary organisations in England – as part of the Spring Statement. Today, at the very least, the Scottish Government could have committed to doing the same here in Scotland. The sector is still waiting on any such commitment.

“While we recognise the challenging financial environment, the sector needs more than warm words and missed opportunities. Just last month the First Minister told assembled voluntary organisations at the Gathering that he’ll move beyond warm words and put money where his mouth is. Today we didn’t see that.

“We need to see meaningful support for the sector, with urgent progress on Fair Funding to safeguard essential services. We stand ready to support the Scottish Government to deliver that progress.”

Joanna Elson CBE, Chief Executive at Independent Age: “We welcome the Scottish Government’s greater focus on older people in poverty in today’s Budget. The news that all devolved social security payments, including the Winter Heating Payment, have been uprated by inflation and that the fund for Discretionary Housing Payment has been increased will be a welcome relief to those struggling financially in later life.

“However, these measures do not go far enough for the 150,000 older people now living in poverty in Scotland, a figure that has risen by a quarter in the last decade alone, now affecting 1 in 7. Today they really needed the Scottish Government to announce a clear, long-term strategy with legally binding targets and ambitions action to tackle pensioner poverty and reverse this frightening trend.

“Older people in Scotland, including those in financial hardship, urgently need greater representation. We were disappointed that the Scottish Government didn’t use today’s announcement as an opportunity to announce funding for an Older People’s Commissioner.

“A Commissioner would give better representation across policy making and provide a crucial independent voice for people in later life. With 1 in 4 of us projected to be over 65 by 2040, there’s no time to waste.

“While we welcome the measures announced today that will improve life for older people on low incomes, the Scottish Government need to go further and faster to address rising pensioner poverty in Scotland. Both a long-term solution to financial hardship in later life and an end to older people feeling ignored by those in power is needed. The time is now for Scotland to have a pensioner poverty strategy and an Older People’s Commissioner.”

Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “With one in four Scottish councils warning that they may be unable to balance their books next year, today’s budget will not offer much reassurance.

“The Verity House Agreement promised early budget engagement, and it promised ‘no surprises.’ This financial settlement does not meet either of those promises or provide councils with the funding they have told us they need.

“A council tax freeze funded as though council tax were increased by 5% is equivalent to the rises that councils were planning for this year, but it denies them the increase in their tax base and thus undermines their finances next year and for years to come.

“The “additional support” promised all appears to be ring fenced to Scottish Government priorities rather than enabling democratically elected councils to make decisions about priorities in their areas. Again, this goes against the Verity House agreement.

“Before the budget, every council told us they were planning cuts to services, 97% that they were planning to increase charges, and 89% that they would have to spend their reserves. The funding announced in the settlement will not alleviate the need for these biting budget measures.

“The council tax freeze this year will not help residents affected by councils’ inevitable spending cuts and it will not help residents next year, when councils’ spending power is reduced further because their council tax base can’t increase in line with the amount they need.

“Our recent survey shows just how strong the concerns are across local government. Only one respondent to our survey said they were confident in the sustainability of council finances. Not a single person said they were happy with the progress that had been made on delivering a sustainable finance system.

“Senior council figures widely condemned how limited their involvement in the pre-budget process was, and this funding settlement confirms the suspicions that led to only 8% of respondents believing the Scottish Government considers local government in wider policy decisions.

Most worryingly, 8 separate councils (25% of all local authorities) warned us that they could be unable to fund their statutory services – the services they have to provide by law. The funding announced today will be no comfort to these struggling councils, who will now have to make even more difficult choices to make up for their funding shortfall.

For the average resident, this means their life will get more expensive and their services will get worse. For some of the most vulnerable members of society, as councils warned us, it may mean that if nothing changes then there is not enough money to fund the services they rely on.

“The funding settlement is not enough for councils to provide the services that millions of people across Scotland rely on. More than that though, it demonstrates that annual funding settlements of this type are not the right way to fund councils or to empower councils to tackle their long-term challenges.

“Councils should be given more powers over how they raise and spend their own money. This means ring-fencing and directed spending need to be reduced, as agreed at Verity House, and councils need to be free to set their own council tax.”

Commenting on the budget, UNISON’s Scottish Secretary Lilian Macer, said: “Today’s budget is a bad day for local services and deals a further financial blow to local councils who are already struggling to balance the books and to deliver the vital services our communities rely on.

“Our public services are on their knees due to years of underinvestment and the Scottish government’s council tax freeze will be a disaster for local services. We need to see investment in public services and a council tax freeze stops investment in public services, in schools and in the NHS.

“The Scottish government had the chance to make big choices to raise more money for Scotland’s public services but while the measures on income tax are welcome, much more could and should have been done. We still have a government boasting of low business taxes at the same time that they are delaying urgent improvements to public services.

“The Deputy First Minister spoke of cutting the public service workforce – people need to be aware that job cuts mean service cuts. What communities across Scotland need is investment, not abandonment.

“While we welcome investment in the NHS, the Scottish government failed to say how this would be targeted to tackling the staffing crisis and ensuring proper funding so the safe staffing act can make the improvements the NHS so desperately needs.

“Given the Scottish government’s commitment to become a fair work nation by 2025, it’s concerning that there was no mention of fair work anywhere in the budget statement, particularly in social care, a sector in crisis.”

Responding to the Scottish Government’s Budget Stuart McMahon, Scotland Director of consumer group CAMRA whose members had been lobbying MSPs asking for a 75% business rates discount to help save pubs and breweries, said:

“Pubgoers will be deeply disappointed by the lack of help for most of our locals today. Whilst 100% rates relief for hospitality businesses in island communities will be welcomed, failing to pass on extra money from the UK Government to help with business rates for the rest of our hospitality businesses is undoubtedly a blow and puts many of our pubs at risk of permanent closure.

“Yet again it seems that the Scottish Government just doesn’t understand the importance of our pubs, social clubs and breweries as a vital part of our social fabric – bringing communities together and providing a safe, regulated environment to enjoy a drink with friends and family. Our locals are community hubs that need and deserve help to make sure that they survive and thrive.

“With reports that pubs are closing at a faster rate here than elsewhere in the UK, Scottish Government ministers urgently need to re-think the decision not to give our locals the 75% discount with business rates bills that pubs south of the border are receiving. The Scottish Government also needs to support consumers, pubs and breweries in the new year by ditching any plans to bring back restrictive bans on alcohol advertising.”

In response to the Scottish Budget, Stephen Montgomery, Director of the Scottish Hospitality Group said: “We are sorely disappointed that the Scottish Government has not delivered new emergency support for Scottish hospitality.

“Unless a hospitality business is located on the islands, this Budget offers no new support to Scottish hospitality to survive the unprecedented challenge of rising costs, inflation, and the legacy of the pandemic.

“The very real implication is that many Scottish hospitality businesses will struggle to survive, and customers will see prices increase. This will be a bitter pill to swallow for thousands of Scottish hospitality businesses, given English hospitality businesses will be benefitting from a 75% business rates discount for the next year. Our attention will now be focused on helping those hospitality businesses survive what will be a very challenging year to come.

“However, we welcome the Scottish Government’s commitment to exploring a long-term, fairer deal for hospitality on business rates. It is a ray of hope in an otherwise disappointing day for Scottish hospitality.

“This is a golden opportunity to deliver a fairer deal for Scottish hospitality once and for all. We have been engaged with the New Deal for Business Group for a number of months and it is time that the Scottish Government’s actions matched their words.

“The Finance Secretary has committed to introducing a long-term, fairer deal for Scottish hospitality at next year’s Budget. We will hold her feet to the fire to make sure she delivers on this promise.”

Scottish Budget 2024-25

Summary of UK Economic and Fiscal Outlook from Office of the Chief Economic Adviser

Immediate local government reforms required to prevent millions more people living in bankrupt boroughs

With a record number of councils expected to declare bankruptcy this year, over 60 council leaders and chief executives have contributed to a new Local Government Information Unit (LGIU) manifesto that – if implemented – could prevent millions of people from living in bankrupt boroughs in 2024/25.

Today’s report, LGiU@40: For the Future of Local Government, calls for a new covenant between central and local government that agrees: an immediate end to competitive bid funding; a return to multi-year financial settlements and early consultation on budgets.

According to the report, almost all leaders and chief executives consulted felt that the level of challenge they were dealing with right now was unlike anything they had seen in their careers to date. Uncertainty over funding and being prevented from making long-term decisions were their biggest complaints and they urged a return to multi-year financial settlements.

The LGIU’s annual State of Local Government Finance report earlier this year revealed only 14% of senior council figures have confidence in the sustainability of council finances and 7.5% – 12 different councils – said there was a danger that financial constraints could risk their capacity to deliver their statutory duties – the essential services they are legally required to provide.

This new manifesto was informed by interviews with more than 60 chief executives and leaders from councils of all sizes, types and political control across England, Scotland and Australia, as well as new research that compares the British local government system to those in Italy, Germany and Japan.

Compounding the funding crises are concerns around status – that central government treats councils as subordinate entities and exerts excessive central control, constraining local government’s autonomy. The new covenant should commit to a system where successful local autonomy is embedded within, and supported by, continual systems of active cooperation between different levels of government.

In addition to the immediate calls for action, the report proposes several longer-term measures including moving to open devolution, a review of taxation and a single local (or sub-regional) budget for spending on all services.

LGiU@40: For the Future of Local government was launched today at the LGIU’s first annual Local Democracy Research Centre (LDRC) symposium where guest speakers included Professor Patrick Diamond, Dr Madeleine Pill, Professor Liz Richards, Professor Richard Eccleston, Dr Peter Eckersley, Theo Blackwell MBE (Chief Digital Officer, Mayor of London), and Keiran Pedley (Research Director, Public Affairs, Ipsos).

Jonathan Carr-West, Chief Executive, LGIU, said: “Eight councils have now declared bankruptcy leaving nearly 2 million residents facing higher bills for a bare minimum service.

“LGIU research indicates that 12 more councils could declare bankruptcy in 2024/25 and we are calling on the Government to prevent millions more people from being forced to live in bankrupt boroughs by bringing an immediate end to competitive bid funding and returning to multi-year financial settlements based on an area’s need.

“Local government is responsible for care homes, vulnerable children, emergency accommodation, leisure centres, libraries and so much more. Essential services that genuinely change millions of people’s quality of life on a daily basis.

“Councils are pulling every lever available to stay afloat: raising council tax, raising charges, cutting services, increasing commercial investments, spending finite reserves and selling assets but it is simply not enough. The link between funding and need is completely broken.

“As more and more councils warn that they will soon be unable to balance their books, this is clearly a moment of crisis for local government. But it’s also a moment of opportunity.

“We’re already in the run-up to the next general election; whoever is in government after that election has the opportunity to reset the relationship between central and local government, to finally give councils the tools they need to be the force for change we all need them to be.

“The chief executives and leaders interviewed for LGIU@40 are sending a clear message. We are at a point of crisis, if we fall over the consequences for the country as a whole are catastrophic, but if we are set free to deliver, the opportunities are endless.”

Yousaf announces Council Tax freeze

STUC: ‘Today’s announcement will only make situation worse’

COSLA: ‘We were unaware of it in advance‘

Council tax rates will be frozen in the next financial year to support people struggling with the effects of high inflation, the First Minister has announced.

The freeze will benefit every Council Tax-payer in Scotland at a time when rising prices are putting significant strain on household finances. The Scottish Government will fully fund the freeze to ensure councils can maintain their services.

First Minister Humza Yousaf said: “Today’s announcement will bring much needed financial relief to those households who are struggling in the face of rising prices. Council tax is already lower in Scotland than elsewhere in the UK, and some 2.5 million households will now benefit from this freeze.

“Of course, the public sector across the UK is facing budget pressures as a result of UK Government austerity, and we know councils are facing financial challenges themselves. That’s why the Scottish Government will be fully funding this freeze to ensure they can continue providing the services on which we all rely. This is on top of the real-terms increase to local government revenue funding this financial year.

“The Scottish Government remains wholly committed to the Verity House Agreement, and as part of that are continuing work with COSLA on a new fiscal framework for local authorities.

“We are also working on longer term reforms to the council tax system, which are being considered by the working group on local government funding that we are chairing jointly with COSLA.”

A COSLA Spokesperson said: “We have just heard the announcement made at the SNP Conference in relation to freezing council tax. We were unaware of it in advance.

“This has longer term implications for all councils right across the country, at a time when we know there are acute financial pressures, and where we are jointly looking at all local revenue raising options.

“We will need to consider the implications for COSLA and Local Government with our members when we get more of the detail.

“This will also need to be examined against the principles of the recently signed Verity House Agreement.”

COSLA arranged an emergency meeting of their Executive, who issued the following statement:

There is absolutely no agreement to freeze Council Tax next year COSLA’s Presidential Team said today (Wednesday 18th October).

“The announcement of a council tax freeze as we said yesterday was made completely without reference to Local Government and there is no agreement to freeze council Tax next year, the decision to freeze council tax is one which can only be made by Councils.

“Our Cross-Party Group Leaders held an emergency meeting first thing this morning on the back of the announcement and there is real anger at the way this has been handled and what it puts at risk.

“On the back of this our Political Group Leaders also asked us to seek an urgent meeting with the First Minister.

“We deplore the way the announcement was made and its substance, both of which fly in the face of the Verity House Agreement which we all recently signed.

“It has been shown that previous council tax freezes have been regressive, having no impact for the poorest in society and eroding the council tax base, compounding councils’ ongoing underfunding.

“We will explore the implications arising and what the Scottish Government might propose when we meet with the Deputy First Minister later today – but we are clear that local taxation and particularly Council Tax should be left for democratically elected councils to determine.”

THE STUC responded swiftly to the First Minister’s announcement of a council tax freeze:

https://twitter.com/i/status/1714597373681279306

THE Scottish Greens, the SNP’s partners in government, have also expressed concerns. Scottish Greens finance spokesperson Ross Greer MSP said: “We are concerned about the effect this freeze could have on already-strained frontline public services if it is not properly funded.

“Our local councils and people who rely on services like social care, schools and early years centres must not lose out as a result of this announcement.

“Green MSPs will now work with our government colleagues in the SNP to work through the details, ensure that their decision is sustainably financed and that the most vulnerable people in our communities do not see the services they rely on being underfunded as a result.

“The First Minister is right to want to support those who are struggling the most through the cost of living crisis, but the way to do that is to completely replace the deeply unfair Council Tax with a more progressive system.

“As we have repeatedly highlighted, council tax is a ludicrously broken system. It hasn’t been accurate since before I was born, with most people now paying the wrong rate as a result of those 1991 valuations.

“The Scottish Greens have ensured that Scotland’s income tax system is the fairest in the UK, raising a billion pounds more every year for essential services like the NHS and our schools by asking those earning the most to pay a bit more.

“That is the progressive approach we will take once again as we work with SNP colleagues to agree the national budget for 2024-25.”

Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “LGIU Scotland is deeply concerned by yesterday’s announcement from the First Minister to freeze council tax.

”The lack of consultation with local government demonstrates a failure of the principles of trust and respect that should be the foundation of the working relationship between the Scottish Government and local authorities and which are at the heart of the Verity House Agreement.

“Our research shows how important it is that local government is empowered to make decisions regarding its financing. International comparisons clearly show the detrimental impact that undermining the financial independence of local authorities has on the financial sustainability of the sector and the delivery of essential local services.

“Freezing council tax should be a decision for councils, not for central government. Even where those freezes are funded by grants, the loss of growth in the council tax base undermines the council’s finances for years to come. Many councils in England are still recovering from this nearly a decade on.

“Everyone aspires to a sustainable, stable future for local government finances but this can only be achieved by giving councils control, not by imposing decisions upon them.

“Scotland had seemed to be making good progress in this regard with the Verity House Agreement and commitments to empowering local government. So it’s disappointing to see this backward step.”

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