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.”
LABOUR ADMINISTRATION LIMPS ON WITH TORY AND LIB DEM SUPPORT
LABOUR councillor Jane Meagher has been appointed as the new Leader of the City of Edinburgh Council.
Former Housing, Homelessness and Fair Work Convener Ms Meagher replaces Labour’s Cammy Day, who resigned as council leader on Monday 9 December following serious allegations of misconduct.
The former leader, who is suspended from the Labour group while under investigation, did not not attend the meeting in person but voted online.
An attempt by the SNP – the biggest party in the City Chambers – to take over the running of Edinburgh with Green and Independent support was defeated in a vote as the minority Labour administration clung on to power backed by Tory and Lib Dem councillors. Labour holds just TEN seats in Edinburgh.
Leith Labour councillor Katrina Faccenda abstained in the vote.
Council Leader Jane Meaghersaid: “This has been an extremely difficult and damaging time for the Council. Today was an opportunity to restore stability and to get on with the business of running the city.
“As we count to down to 2025 – and to the challenging budget and other decisions that await us in the new year – we need stability, confidence and consensus.
“I know from speaking to colleagues from other political groups that they agree – and that’s what I’ve committed to today.
“I am, by my nature, a consensus builder – willing to take on board others’ views, willing to compromise and willing to take the type of decisions that will help and benefit the people of Edinburgh – particularly those most in need of our support.
“That’s the kind of leadership we need, and that’s what I’m determined to deliver for the city I’ve lived in for 50 years.”
Ms Meagher took part in the crisis council meeting while away on a family holiday in Tanzania.
Local authorities receive ‘real terms increase’ in funding
Councils will share a record funding settlement of more than £15 billion subject to passing of the 2025-26 Budget, provisional allocations show.
The 2025-26 Local Government Settlement includes a £289 million increase in funding to be used by councils to meet local needs and £120.5 million additional funding for pay deals.
The Budget also includes a one-off payment of £40 million to help councils respond to the climate emergency, and additional funding to support free personal care, teacher numbers and island communities.
Finance Secretary Shona Robison said: “Our Budget is laying the foundations for Scotland’s future success, with investment to help improve the public services that people rely on.
“Local authorities provide some of the most important services to our communities – from schools to social care – which is why we’ve increased their funding by more than £1 billion compared with last year’s Budget.
“The settlement is the result of meaningful budget engagement with COSLA and Councils. While council tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in Council Tax next year.
“This is a Budget that will deliver increased funding for schools, social care and other vital council services. But this funding will only reach communities if the Budget passes, so I am asking Parliament to unite behind it.”
Nominations opened on Friday (6 December) for candidates to stand in the forthcoming Colinton/Fairmilehead by-election.
The by-election is being held following the resignations of Councillor Marco Biagi (SNP) and Councillor Louise Spence (Lib Dems) last month.
On Thursday 23 January 2025, Colinton/Fairmilehead residents will go to the polls to elect two new councillors to represent the ward which also includes Bonaly, Dreghorn, Oxgangs and Swanston.
The current electorate is 19,907 and turnout at the most recent by-election was 37.4%.
A Formal Notice of Election was also published today explaining how to stand as a candidate, who is eligible to vote and how to make sure you are on the Electoral Register.
Voters have a range of options for casting their ballot – in person, by post or by appointing someone they trust to vote in their place, known as a proxy vote.
In order to stand as a candidate, individuals must submit nomination papers, which are available on the Council website, by 4pm on Tuesday 17 December.
Returning Officer for the City of Edinburgh, Paul Lawrence said: “The Notice of Election signifies the official start of the election period for the Colinton / Fairmilehead ward.
“I would urge all residents in the ward to make sure they are registered and have their details or preference of how they would like to vote up to date in plenty of time.
“Anyone unsure about how to register, where to vote or how to vote by post can find more information on the Council website.”
Polling stations will be open from 7am to 10pm on 23 January 2025. Details of these will be announced in due course.
The election will use the Single Transferable Vote (STV) system where voters can rank candidates in order of preference rather than using a single cross. Voters can give a rank to as many or as few candidates as they like.
People aged 16 and over and all those legally resident – including foreign citizens – can register to vote in this election. Find out more about elections in Edinburgh and how to register to vote on the Council website.
The deadline to register to vote is Tuesday 7 January 2025, to apply for a postal vote the deadline is Wednesday 8 January 2025, and for a proxy vote the deadline is Wednesday 15 January 2025.
The 2025-26 Budget will deliver progress for the people of Scotland, with a record increase in frontline NHS spending, and plans to lift 15,000 children out of poverty by mitigating the UK Government’s two-child limit from 2026.
Setting out the Budget to Parliament, Finance Secretary Shona Robison said the government had listened and would now act on the priorities of people, businesses and organisations across the country – delivering progress for Scotland, by Scotland.
The 2025-26 Budget includes:
a record £2 billion increase in frontline NHS spending taking overall health and social care investment to £21 billion to reduce NHS waiting lists, making it easier for people to see their GP, and progress the Belford Hospital, Monklands Hospital and Edinburgh Eye Pavilion projects
funding for universal winter heating payments for older Scots, and investment to allow the mitigation of the two-child cap from 2026
tax choices that freeze income tax rates, increase the Basic and Intermediate rate thresholds to put more money in the pockets of low and middle-income earners, and provide business rates relief for hard-pressed local pubs and restaurants
a record £15 billion for local government to support the services communities rely on and £768 million to provide 8,000 more affordable homes
£4.9 billion of action on the climate and nature crises to lower emissions and energy bills, protect the environment, and create new jobs and opportunities
a real-terms uplift of 3% for spending on education and skills to maintain teacher levels and invest in school infrastructure, as well as new funding to put more breakfast clubs in primary schools
a £34 million uplift for culture in 2025-26
The Finance Secretary said: “I am proud to present a budget that delivers on the priorities of the people of Scotland.
“Parliament can show that we understand the pressures people are facing. We can choose to come together to bring hope to people, to renew our public services, and deliver a wealth of new opportunities in our economy.
“This Budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supports jobs and economic growth.
“It is a budget filled with hope for Scotland’s future and I look forward to working with all parties in Parliament to secure agreement around its provisions.”
£6.9 billion total investment in social security, including the Scottish Child Payment
almost £4.2 billion across the justice system in 2025-26, including £1.62 billion for policing to support capacity and capability, £881.1 million for prisons, including £347 million for the prison estate to deliver HMP Glasgow and HMP Highland, and £159 million for community justice services to support the wider use of community interventions
over £2.6 billion towards public transport to support bus, rail and ferry services and increases the dedicated funding available to the four councils operating their own ferry services to £50.3 million
over £660 million for rural communities to support the crucial contribution of Scotland’s farmers, crofters and the wider rural economy
almost £90 million to protect, maintain and increase our woodlands and peatlands, to restore more than 15,000 hectares of degraded peatland and ensure the creation of more than 11,000 hectares of woodland across Scotland
a £34 million uplift for culture in 2025-26, building on the £15.8 million increase in the last Budget to take the total incremental increase in culture funding to almost £50 million – the halfway point in our commitment to increase funding to culture and the arts by £100 million more annually by 2028-29
£6 million for the National Islands Plan to deliver infrastructure projects designed in partnership with islanders to support successful and resilient island communities
protection for free tuition and a 3.5% increase in total investment in Higher Education, compared to a 3.08% increase in university funding in England
Ben Macpherson MSP has welcomed the Scottish Government’s budget commitment to provide significant additional funding for the Granton Waterfront regeneration project, with a long-term agreement to be formalised in 2025.
Having spoken regularly about Granton in the Scottish Parliament this year, and previously, to promote the area as a strategic development site for Edinburgh and Scotland as a whole, Ben Macpherson MSP is delighted that the Scottish Government has committed financial support to significantly progress the City of Edinburgh Council’s ambitions plans.
The budget statement by Shona Robison MSP included: “I can confirm today that we will be working with Edinburgh City Council to unlock over 800 new, net zero homes at their Granton development site.”
In the Scottish Parliament, during the Budget statement and question session, Ben Macpherson MSP for Edinburgh Northern and Leith said: “As the local constituency MSP, I believe passionately in the significant potential for the development of Granton Waterfront to help tackle Edinburgh’s housing challenges, to transform the northern part of our capital city for the common good, and to deliver economic growth, new opportunities and multiple positive benefits for existing communities and our country more broadly – that’s why I have worked constructively to highlight all of this to Ministers, and am therefore delighted and grateful that the Finance Secretary has committed to working with City of Edinburgh Council to deliver 800 more homes.
“Can the Finance Secretary say more about the Scottish Government’s commitment to the development of Granton Waterfront – as a strategic site – and the positive impact this will deliver for the people of Northern Edinburgh and Scotland as a whole?”
The Cabinet Secretary for Finance, Shona Robison MSP, replied: “Ben Macpherson is absolutely right, the Granton Waterfront development is a big deal for Edinburgh, and we will work with Edinburgh Council over the coming months and hope to announce a deal on the detail early in the 2025-26 financial year to support this multi-year project.
“And I talked in my statement about it unlocking 800 new net-zero homes of mixed types and tenures but also sustainable transport links and placemaking initiatives.
“This can be a gamechanger for Edinburgh and I am very acutely aware of the housing need in Edinburgh, and I think this will go a long way to helping as part of this solution.”
Ben Macpherson MSP for Edinburgh Northern and Leith, added: ““This is a very significant step forward towards tackling Edinburgh’s housing emergency and realising all of North Edinburgh’s remarkable potential.
“I have passionately and consistently supported the regeneration of Granton Waterfront throughout my time as the MSP for Edinburgh Northern and Leith, and have worked to be a constructive link between the Scottish Government and the City of Edinburgh Council in this collective endeavour.
“The vacant and derelict land in Granton has the potential to be transformed into a new residential hub and a destination to visit for locals and tourists alike – just like in Dundee and other waterfront cities across the world. It is fantastic that the Scottish Government has committed to this vision and given pivotal financial backing to make it happen!
“Edinburgh continues to face significant, various housing challenges and building more affordable homes is crucial in helping to tackle this. With Scottish Government support, the development plans for Granton will deliver transformational change to benefit the local area and the wider economy.
“It has been a consistent priority since my election to promote and deliver more affordable housing in Northern Edinburgh – as well as accompanying infrastructure and facilities in the area, like cultural and creative hubs, opportunities for small businesses to thrive, and key services such as schools and health centres – and I look forward to seeing the development of Granton benefit the people of Edinburgh in the years ahead, and the additional investment and opportunities that will be created.”
BUDGET REACTION:
Responding to today’s Budget statement by the Finance Secretary, John Dickie, Director of Child Poverty Action Group (CPAG) in Scotland, said: “The Finance Secretary is absolutely right to mitigate the two-child limit in the absence of abolition at UK level.It’s a pernicious policy that pushes 15,000 children into poverty in Scotland alone.
“Investing in social security for families is key to delivering on the First Minister’s number one priority of eradicating child poverty.
“The devil will be in the detail and families really can’t wait until 2026 to see their incomes boosted, so an above inflation increase to the Scottish child payment is still needed in the meantime.
“But there is no question this is the right focus for prioritising spend. We need the UK government take the same approach to investing in family benefits as a matter of utmost urgency.”
CHILD POVERTY ACTION GROUP
COSLA
Responding to today’s Scottish Government draft budget, Poverty Alliance chief executive Peter Kelly said: “The two-child limit is a huge injustice that has no place in a compassionate society – because every child matters and every child should get support they need.
“We welcome the Scottish Government’s proposals today, and we hope that the UK Government works positively and quickly to get this extra support to households with children. We hope it adds to the pressure to scrap the two-child limit across the UK.
“With record numbers of children in temporary accommodation, additional investment in affordable homes and homelessness prevention is necessary and welcome. But we know that more social homes are needed to tackle the housing emergency in Scotland – meeting that challenge requires further investment.
“Many of our members have called for the Scottish Government to make up the difference for pensioners who have had Winter Fuel Payments taken away from them. They will welcome today’s plans.
“We have worked directly with people who are forced to live on a pittance by the unjust UK asylum system, and we supported their campaigns for free bus travel. It is welcome that the Scottish Government have allocated to funding to that proposal, which will increase their freedom to build a life beyond poverty and take part in society. We hope this is the start of a move to provide bus passes to more people – starting with those eligible for benefits.
“But we can do more. There are around 240,000 children in poverty in Scotland. We need to go further and faster if we are going eradicate child poverty.
“That means more immediate support through the Scottish Child Payment and using our powers over tax and investment to build a stronger society for all of us – especially people in poverty.”
POVERTY ALLIANCE
SAVE THE CHILDREN SCOTLAND
SCVO
SCOTTISH HOSPICES
“Today @scotgov announced £768m to buy or build 8k affordable homes next year. It is a sign it’s taking the housing emergency seriously but it is only a reverse of previous cuts. As a result, it’s a cut in real terms as same money buys less now compared to two years ago.
“Though it is a step forward, 8,000 homes is a drop in the ocean compared to what is needed There are 243,000 people on waiting lists in Scotland. The last decades have seen the decimation of council housing because of a lack of funding, stock transfer and right to buy.
“This government needs to deliver more social housing by allocating greater funding for stock buy back and for social and council house building programmes, to ensure more people have a stable, secure, affordable place to live.”
LIVING RENT
We welcome the budget statement from the Scottish Government signalling the value it places on culture & the arts.
Culture is the beating heart of Scotland & this budget offers us all hope for a more stable, positive future.
EDINBURGH INTERNATIONAL FESTIVAL
Creative Scotland wholeheartedly welcomes the positive news of the substantial uplift for Culture, including Creative Scotland, in the Scottish Government’s draft budget announced today.
In 2025/26, Creative Scotland’s draft Grant-in-Aid budget from the Scottish Government will be £80m, up from £51.4m in the previous year. Included in this is an additional £20m, specifically for use in supporting the Multi-Year Funding programme and an additional £2m to support delivery of Screen Scotland’s strategy.
The Board of Creative Scotland will meet on 16 December to agree the final budget for Multi-Year Funding and a further update will be made following that meeting.
The final outcomes from the programme will be announced by the end of January.
Creative Scotland’s Chair, Robert Wilson, said: “Today’s draft budget announcement by the Scottish Government is enormously welcome. The major boost to Multi-Year Funding and other activities opens up wider opportunities, and we are grateful to the Scottish Government for this significant vote of confidence in Creative Scotland and the creative and culture sector.
“This is especially positive in the light of the long-term financial challenges the sector has been dealing with and will enable people and organisations to once again look forward with more confidence.”
CREATIVE SCOTLAND
Today’s budget released by the Scottish government is a “step in the right direction” but comes too late to ease the winter crisis already hitting some of the country’s A&Es.
This is the response from The Royal College of Emergency Medicine (RCEM) following the budget announcement today – Wednesday 4 December 2024 – by Finance Secretary Shona Robison MSP.
Dr Fiona Hunter, RCEM’s Vice Chair for Scotland said: “We welcome the government’s commitment to addressing many of the systemic issues that have plagued our health care system – its patients and staff – for far too long.
“However, it has not come soon enough to ease pressures faced by A&Es who are working under extreme pressure to care for patients right now.
“We restate our commitment to working with the Scottish government to bring an end to this reality and #ResuscitateEmergencyCare in Scotland, for generations to come.”
The budget statement comes just one day after an Audit Scotland report revealed the number of people remaining in hospital because their discharge has been delayed – often due to a lack of social care capacity – is the highest on record.
ROYAL COLLEGE OF EMERGENCY MEDICINE
In response to today’s Scottish Government Budget,Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Older people across Scotland will be relieved to see the return of some help with winter energy bills through the Pension Age Winter Heating Payment from next year.
“For many not currently receiving Pension Credit, or those just above the eligibility, this money is desperately needed. Although not what they were originally due to receive, last week’s decision has been welcomed by older people in financial hardship across Scotland.
“It’s also good news that Scottish Social Security has been uprated with inflation, including entitlements that are important to older people, such as Pension Age Disability Payment and Winter Heating Payment. Many people in later life will be reassured that this has been confirmed.
“We are pleased to see that the Scottish Government is focussed on supporting renters. Over recent years both the number of older people renting privately and the proportion in poverty has risen. The increase in the Discretionary Housing Payment funding pot is an important lifeline to many older private renters, making up rent shortfalls, and the increased investment in social homes building should give tenants of all ages more security.
“However, it is concerning that the Scottish Welfare Fund, which can be a crucial safety net for older people when emergencies occur, such as needing help with food or heating costs, has not been increased.
“Generally, the older people in financial hardship that we speak to will feel heard by the Scottish Government today. However, we remain concerned about older people this winter. Going forward, the Scottish Government must continue to make decisions that improve the lives of older people in poverty.”
INDEPENDENT AGE
Jonathan Carr-West, Chief Executive, LGIU Scotland,said: “We know from our annual survey that local government finances in Scotland are hanging by a thread. One in four councils are afraid they won’t be able to pass a balanced budget next year. Three quarters are warning that they may not be able to do so within the next five years. Today’s Budget from the Scottish Government does not engage with the scale of that challenge.
“Local government may welcome commitments to the New Deal with Local Government continuing work on a fiscal framework and plans to deliver new revenue raising powers. However, they will be dismayed to see how much funding continues to be ring fenced.
“There is an increase in core funding in today’s Budget but it doesn’t cover the ever growing costs of core statutory services.
“The Scottish Government has responded to the concerns of councils and has removed the freeze on council tax rises, but the Cabinet Secretary’s expectation that record funding levels should mean councils do not need to put up council tax is too complacent.
“The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.”
LOCAL GOVERNMENT INFORMATION UNIT
Commenting on the Finance Secretary’s Budget statement this afternoon, Director of CAMRA Scotland Stuart McMahon said:“Pub goers and licensees will be raising a glass to the news that the Scottish Government are finally introducing help with the burden of business rates that have contributed to scores of pubs having to close their doors in recent years, and at a higher rate than elsewhere on these islands.
“Pubs are a vital part of our social fabric and it is right that they will now get the same 40% reduction in business rates that pubs in England get. It is also encouraging that pubs on island communities will continue to get a 100% reduction with their business rates.
“In order to make sure our pubs survive and thrive at the heart of our communities ministers must now commit to reforming the entire Business Rates system to make it fairer. The Scottish Government should level the playing field between online and bricks-and-mortar businesses and finally end the shocking overpayment that pubs have to cough up under the current system.”
CAMRA
Mary Glasgow, chief executive at Children First said: “The Cabinet Secretary says this budget will lift children out of poverty but given that Scotland faces a childhood emergency it is difficult to see how.
“The promise of jam tomorrow, in the form of mitigating the UK two-child cap does nothing to alleviate the plight of thousands of children and families across Scotland who are going hungry today.
“We called on the Scottish Government to invest in early help and support for families and to increase the Scottish child payment. It is disappointing that they have chosen to delay investing in children rather than taking immediate action. Children can’t wait.”
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
New research from Local Government Information Unit (LGIU) Scotland reveals that 70% of all councils believe they will be unable to pass a balanced budget within the next five years without immediate changes.
The second annual State of Local Government Finance in Scotland, found councils are taking every measure available to balance their budgets including raising council tax, reducing expenditure and increasing fees and charges, sharing services and engaging in commercial activity. However, many councils believe this will still not be enough to prevent the risk of an unbalanced budget.
Nearly every respondent said they believe cuts to services will have a negative impact on quality of life in their council, and over 90% that cuts will increase the risks to vulnerable people.
The report found satisfaction with the Scottish Government is alarmingly poor across the sector. Not a single respondent said they were happy with the Scottish Government’s performance on delivering a sustainable funding system or considering local government in wider policy decisions.
Respondents representing 84% of Scottish councils, made up of council leaders, CEOs and CFOs said times are increasingly hard for local authorities, with ongoing pressure from the cost of living crisis and inflation adding new burdens on top of long-term challenges: demographic change, financing of Scottish Government priorities, and pressures with recruitment and retention of staff.
With councils’ confidence in the sustainability of council finances critically low, the sector is in favour of widespread reform, including multi-year financial settlements, ending ring-fencing, and reform of council tax.
Councils are optimistic about the role that local government, sufficiently funded and empowered, could have to advance the prevention agenda, tackle local and national shared priorities, deliver services and empower communities.
The report recommends an agreed national convention between Scottish Government and local government to cover procedures and actions that would then be needed to set a balanced budget; enshrining in legislation the principles of the Verity House Agreement, and committing to an annual review by Scottish Parliament covering the key principles.
Some of the medium to long-term recommendations include reconsidering a whole-system approach to funding wider public finances including a review of council tax, the funding formula and increasing the range of revenue-raising options available for councils.
Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “This year’s results make for grim reading about the state of local government finances in Scotland. The message from our second annual State of Local Government Finance in Scotland builds on last year: we are nearing the point of no return. The report paints a picture of a system under continual and significant strain, with the scale of financial pressures increasing from 2023.
“Local government finances in Scotland are hanging by a thread. However, the thread has not yet broken. Today’s report delivers a stark warning that councils are in a precarious financial position and there is not much time until the sector starts to see potentially catastrophic consequences.
“Change is urgently needed. Councils will soon be unable to balance their budgets, meet their statutory duties, or provide for their communities. We need to change course now before it is too late.
“The challenge now is how do we move from the situation we are in now, to one where councils are able to deliver the transformative impact they are confident that they could deliver.
“Reform is necessary, empowerment will be essential, and trust between Scottish Government and local government – in a critically poor state – must be restored.”
The LGIU asked Scotland’s Council Leaders, Chief Executives and Chief Finance Officers about their experiences trying to run councils in the last financial year, and their views on how councils’ financial sustainability could be assured.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented:“The publication of today’s report by the LGIU highlights the sheer scale of the financial challenges facing our councils.
“The fact that 70% of councils in Scotland may be unable to balance budgets in the near future should serve as a warning to all. Additionally, it emphasises the need for the Scottish Government to provide Local Government with an increased funding settlement which is both fair and flexible in 2025/26.
“COSLA also welcomes the LGIU’s call for a whole system approach to Local Government finance.
“This echoes our asks in our ‘Invest Locally in Scotland’s Future’ budget lobbying campaign. Without a clear focus on prevention and upstream investment, along with local flexibility, our councils will be unable to tackle higher demand, in key areas such as homelessness prevention and social care.
“COSLA is calling for the Scottish Government to provide at least £14.5bn in revenue funding and £872m in capital funding in the 2025/26 Budget.
Meeting this demand would not make up for the cuts councils have faced and felt by our communities in recent years, however it would be a positive step forward in providing fair and flexible funding to meet the challenges outlined in the LGIU report.”
A report has shown how partnership working between the Scottish Government and councils is helping to deliver on community priorities.
Signed in June 2023, the Verity House Agreement sets out principles for the Scottish Government and the Convention of Scottish Local Authorities (COSLA), the representative body of all 32 councils, working together to empower local communities, tackle poverty, transform the economy and provide high-quality public services.
The Verity House Stocktake report highlights joint work on local government pay, enabling councils to double the full rate of council tax on second homes, delivering a new national allowance for foster and kinship carers, and close engagement around the Circular Economy Bill.
Finance and Local Government Secretary Shona Robison said the stocktake illustrated the value of the Agreement in its first year and how early, open and regular dialogue has helped to navigate challenges.
Ms Robison said: “The Verity House Agreement has built the foundations for us to work alongside local government in a more positive and proactive way, which enables meaningful and effective delivery of our shared priorities for the benefit of our communities.
“A key priority for Scottish Government and COSLA over the coming year will be to identify opportunities to improve our partnership approach, to fully reflect our shared ambitions such as tackling child poverty and improving public services.”
Councillor Shona Morrison, President of COSLA, said: “During the first year of the Verity House Agreement whilst we have seen some significant challenges, there have been positive results in many areas where adherence to the VHA principles have proved their worth.
“It is for this reason that COSLA welcomes publishing this joint review and why we remain firmly committed to those principles. We believe that embedding the principles will not only help us overcome the challenges that remain but will continue to enhance and improve the critical relationship between both spheres of government in Scotland.”
The winners of the only national awards to celebrate the vital work of councillors across Scotland were revealed last night at the 2024 LGIU and CCLA Cllr Awards.
Winners were announced at a ceremony at Edinburgh’s City Chambers, showcasing the best of local government.
Top prize of the evening, Leader of the Year, went to Cllr Emma Macdonald, Leader of Shetland Islands Council.
Cllr Annette Christie of Glasgow City Council was this year’s Innovator of the Year and Cllr Katie Pragnell from East Renfrewshire Council walked away with Young Councillor of the Year. Another East Renfrewshire councillor, Cllr Betty Cunningham was crowned Lifetime Legend and the coveted Community Champion award went to Glasgow City Council’s Cllr Elaine McSporran.
The five categories reflect the varied contributions made by a wide range of councillors, and winners were chosen from more than 100 nominations. All too often the work of councillors can go unrecognised and the purpose of the Cllr Awards is to champion what councillors do for their local communities.
Winners were chosen by a judging panel comprised of senior councillors and leading stakeholders from across the sector. These important Awards – a staple in the local government calendar – are made possible thanks to the generous support of founding partners CCLA.
Jonathan Carr-West, Chief Executive, Local Government Information Unit (LGIU) said: “Councillors across Scotland do incredible work day in and day out to support their communities, make local areas better places to live, and ensure the voices of residents are heard across council decision making.
“At LGIU, we are determined to celebrate these remarkable achievements, which genuinely improve residents’ lives and the well-being of our communities. I want to congratulate all of our very worthy Cllr Awards winners this evening.
“Their dedication and service represent the very best of local government.”
Kelly Watson, Head of Public Sector Relationships, CCLA said: “Local councillors are at the heart of communities and nights like this are an opportunity to showcase the contributions and real world impact made by those unsung heroes striving for a better world. The work undertaken by councillors positively impacts people’s lives in countless ways.
“As councils are facing unprecedented challenging times, these Awards remind us of how important and vital the work of local councillors and councils is.”
Colinton/Fairmilehead by-election candidates announced
The candidates standing in the forthcoming Colinton/Fairmilehead Council by-election have been confirmed.
Twelve candidates have been nominated to stand in the by-election, which is due to take place on 14 November.
The candidates standing for election are –
Bonnie Prince Bob, Independent
Mev Brown, Independent
Mairianna Clyde, Scottish National Party (SNP)
Neil Cuthbert, Scottish Conservative and Unionist
Sheila Gilmore, Scottish Labour Party
David Ian Henry, Independent
Tam Laird, Scottish Libertarian Party
Grant Lidster, Reform UK
Richard Crewe Lucas, Scottish Family Party
Daniel Aleksanteri Milligan, Scottish Greens
Louise Spence, Scottish Liberal Democrats
Marc Wilkinson, Independent
Returning Officer for Edinburgh Paul Lawrence, said: “With nominations now closed and a month remaining, residents of the Colinton/Fairmilehead ward can start considering who they will vote for in the upcoming by-election. It’s important to make sure you’re registered to vote by 29 October in order to participate.
“Councillors play a vital role in our democratic system, making key decisions that impact our city. I encourage as many residents as possible to take part in this by-election.”
“The election will use the Single Transferable Vote (STV) system, where voters rank candidates in order of preference by assigning numbers rather than just marking a single cross. You can choose to vote for as many or as few candidates as you wish.”
Poll cards will be delivered to registered voters in the area from today (Tuesday 15 October) including further information on when and where to vote.
If you live in the Colinton/Fairmilehead ward you must register to vote by 29 October and anyone wishing to vote by post can sign up for a new postal vote up until 30 October.
You can also apply for someone to vote on your behalf via proxy voting, with the deadline for new proxy vote applications on 6 November (for registered voters).
Polling stations will be open from 7am to 10pm and will be at:
Charwood
Fairmilehead Parish Church Hall
St. Cuthbert’s Episcopal Church Hall
Oxgangs Neighbourhood Centre
Pentland Community Centre
The electronic election count will take place on Friday 15 November starting at 9:30am.
The by-election follows the resignation of Councillor and former Transport and Environment Convener Scott Arthur, following his election as the MP for Edinburgh South West on 4 July 2024.
