Tag: Local Government Information Unit

A Budget to ‘fix the foundations’ and deliver change for Scotland?

Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’

  • No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
  • Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
  • Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.

The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.

The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.

The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.

Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.

“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.

“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.

“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.

“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.

  • The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
  • The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
  • Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
  • The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
  • The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
  • To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.  
  • Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
  • Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
  • Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
  • Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.

  • The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK. 
  • The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
  • The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports. 
  • The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
  • To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
  • We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
  • Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
  • An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
  • A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation. 
  • The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

  • The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
  • The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
  • Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
  • To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
  • The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
  • The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
  • Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
  • From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
  • From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
  • The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030.  The 29% investment allowance will be removed.
  • To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

  •  Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).  
  • Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking. 
  • To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
  • The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:  

  • A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
  • Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
  • The planned 50% reduction for foreign income in the first year of the new regime will be removed.
  • Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
  • The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting.  A Fiscal Lock will also ensure no future government can sideline the OBR again.

Budget marks ‘step in right direction’

Scotland’s Finance Secretary responds to Budget

Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.

The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.

“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.

“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.

“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.

“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.

“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”

Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit

  • 16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
  • “Good news on universal credit deductions, but no bold action on child poverty” 
  • Barnett consequentials must now be prioritised to fund action on child poverty in Scotland

Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said; “The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty.  She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.

We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”

Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.

“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”

POVERTY ALLIANCE:

Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.

“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.

“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.

“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.

“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.

“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.

“It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.

“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.

“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”

TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”

Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need

Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services. 

“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people. 

“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs. 

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets. 

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.” 

Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.

The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency. 

However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.

Shelter Scotland Director, Alison Watson, said: “Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.

“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.

“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour. 

“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.

“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.” 

COSLA:

ONE PARENT FAMILIES SCOTLAND:

Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’

Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade

The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’

In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief. 

The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.

Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.

Commenting on the Budget, Chief Executive of the SWA Mark Kent said: “This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.

“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.

“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.

“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.

“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”

Rain Newton-Smith, CBI Chief Executive, said: “The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.

“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.

“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.

“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”

FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget

The Federation of Small Businesses responds to the Chancellor’s Budget statement

Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.

“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.

“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.

“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.

“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.

“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.

“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.

“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.

“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.

“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”

UK Budget fails “3 Key Tests for Scotland”, say Alba Party

Scottish Government must now fund universal entitlement to pensioners winter fuel payment

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.” 

This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget. 

Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.

Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.

Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget. 

MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.   

Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.

Commenting Acting Alba Party leader Kenny MacAskill said: ““Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose. 

“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.

“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland. 

“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”

Budget is a ‘Missed Opportunity’

The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.

A statement from the Independent Alliance:

LOCAL GOVERNMENT INFORMATION UNIT:

Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules. 
 
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
 
“But this extra funding is not even half the gap that councils currently face. 
 
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
 
“There were some welcome highlights: retaining 100%  of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future. 
 
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”

One month left to nominate your councillors for the 2024 Cllr Awards

Your councillors could be in line for a national award at the 2024 Local Government Information Unit (LGIU) and CCLA Cllr Awards – the only national ceremony that celebrates the outstanding contributions of councillors across England, Wales, and Scotland.

For the 15th year, the Cllr Awards will once again shine a light on the achievements of local elected representatives who have made a tangible impact in their communities. 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.

The 2024 Cllr Awards has five categories: Community Champion, Leader of the Year, Young Councillor of the Year, Innovator of the Year and Lifetime Legend. Nominations close on Friday 13 September 2024, and the shortlisted candidates will be announced in the autumn. 

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

Winners in England & Wales will be announced at the Guildhall in London on Wednesday 20 November while winners in Scotland will be revealed at the City Chambers in Edinburgh on Thursday 14 November.

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.

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

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

Nominations open for the 2024 Cllr Awards

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

Councils on the brink of collapse

Nearly a quarter of Scottish councils warn of effective bankruptcy

  • EVERY SINGLE COUNCIL plans cuts to services, affecting millions of residents

New research out today from Local Government Information Unit (LGIU) Scotland reveals that nearly a quarter of Scottish councils fear they will not be able to balance their budgets in the 2024/25 financial year.

This is despite the fact that every single council in Scotland plans to cut spending on services in the next financial year, with around two-thirds of respondents cutting spending on education, parks and leisure, and business support.

Alongside planned cuts, nearly all (97%) said that they would be increasing fees and charges, and nine in ten (89%) that they would be spending reserves. 

The first annual LGIU State of Local Government Finance in Scotland survey, found more than three quarters of respondents (76%) believe these cuts will be evident to the public.

Had it not been for the Scottish Government decision to unilaterally declare a council tax freeze, every council would have raised council tax, most often by a significant amount. The proposed council tax freeze has contributed to an increasingly poor relationship between Scottish Government and local government.

The current state of the economy, manifested in high rates of inflation, affects wages, utilities and food, thus making service provision even more expensive for councils and was considered to be a problem by every respondent who answered. The associated cost of living crisis – which puts additional demand on services – was also considered to be a problem by over 90% of respondents. 

There was widespread agreement on the most pressing issues in council finances: in addition to inflation, ring-fencing, staff recruitment, cost of living crisis and pressures linked to demographic change were all considered to be problems by more than 90% of respondents. 

Adult social care and children’s services were considered the greatest shortest-term pressures on council finances, and adult social care by far the greatest long-term pressure. 

Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “Councils in Scotland are raising a red flag that council finances are completely unsustainable. With nearly a quarter of councils warning they may be unable to fulfil their statutory duties, it is only a matter of time before we see the first council in Scotland declare effective bankruptcy. 

“Councils are pulling every lever available to them to balance their books. Every respondent said they were cutting spending on services, 97% that they would be increasing fees and charges, 89% that they would be spending reserves. But it is not enough. Councils have little to no confidence in local government finance and the issues behind the crisis are not going away.

“Scottish Government must work productively with councils to restore trust, remove ring fencing, identify revenue streams and reform core funding for councils to ensure residents, and particularly the most vulnerable in communities, are able to access the services they need and pay for.”

State-of-Local-Government-Finance-in-ScotlandDownload

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.”

Local councillors across Scotland awarded in annual showcase of the best of local government

NO EDINBURGH COUNCILLORS MAKE THE SHORTLIST

LGIU Scotland and CCLA were proud to unveil the winners of the 2023 Cllr Awards; the only national awards ceremony to celebrate the vital work of local councillors across Scotland.

At Edinburgh’s City Chambers, the top prize of the night, Leader of the Year, went to Cllr John Alexander of Dundee City Council.

Cllr Ruairi Kelly of Glasgow City Council walked away with the Community Champion prize and Cllr Heather Woodbridge of Orkney Islands Council claimed Resilience Champion.

Cllr Dan Hutchison, of Glasgow City Council, went home with Young Councillor of the Year while Cllr Helen Wright from Dundee City Council was awarded Lifetime Legend for her service.

Winners triumphed over nearly 100 nominations across five categories that celebrate the wide-ranging work of councillors. The Cllr Awards are a hugely important way to champion what councillors do locally as their work can, all too often, go unrecognised. Read more about the winners here. 

The Cllr Awards judging panel was made up of senior councillors and leading stakeholders from across the sector. These are the only national awards to celebrate and showcase the work of individual councillors across Scotland and are only made possible thanks to the generous support of founding partners CCLA.

Jonathan Carr-West, Chief Executive, Local Government Information Unit (LGIU) Scotland said: “In the face of unprecedented domestic and global challenges over the last year, councillors nationwide have once again exhibited unwavering dedication to serving their constituents.

“Tonight’s winners show the remarkable contributions local councillors make to their communities and we at LGIU Scotland are dedicated to celebrating these achievements that genuinely improve the lives of local residents. 

“As councils continue to deliver essential services like social care and housing amid a cost of living crisis, these awards are a hugely important way to champion what councillors do locally. I extend heartfelt congratulations to all the Cllr Awards winners this evening. We applaud you for your dedication.”

Minister for Local Government Empowerment, Joe FitzPatrick MSP said: “As someone who was previously a councillor, I recognise the important role councils play in delivering vital frontline services for our communities.

“Every councillor nominated for these awards exemplifies this spirit of public service and I congratulate them all.

It is crucial the Scottish Government works in partnership with local government to achieve the best possible outcomes for people. This approach, which is built on mutual trust and respect, is particularly important as we work to help people through the current cost crisis.”

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.”

Annual Cllr Awards shortlist unveiled

Just ONE Edinburgh Councillor makes the cut

  • 14th annual Cllr Awards shortlist unveiled
  • Local councillors from Cornwall to the Orkney Islands shortlisted for national awards

49 local councillors from across England, Wales and Scotland have been shortlisted for the 2023 LGIU and CCLA Cllr Awards, showcasing the vital contributions of councillors for the 14th year running. 

Competition was extremely tight with more than 300 nominations received across five categories that celebrate the wide-ranging work of councillors. The categories up for grabs this year include Community Champion, Leader of the Year, Young Councillor of the Year, Resilience Champion and Lifetime Legend 

Only one City of Edinburgh councillor has made the shortlist. Leith Labour councillor James Dalgleish (above) is in the running for the Young Councillor of the Year Award.

The winners in England & Wales will be announced at the Guildhall in London at 7pm on 16 November 2023. The winners in Scotland will be announced at the City Chambers in Edinburgh at 7pm on 21 November 2023. 

RSVP here to secure your place. 

The Cllr Awards judging panels are made up of senior councillors and leading stakeholders from across the sector. These are the only national awards to celebrate and showcase the work of individual councillors. This year’s awards are made possible thanks to the generous support of founding partners CCLA.

Jonathan Carr-West, Chief Executive, LGIU said: “In the face of unprecedented domestic and global challenges over the last year, councillors nationwide have once again exhibited unwavering dedication to serving their constituents.

“The shortlist for the 2023 Cllr Awards represents some of the most devoted elected representatives in England, Wales and Scotland. 

“As councils continue to deliver essential services like social care and housing amid a cost of living crisis, these Awards are a hugely important way to champion what councillors do locally. Their work, all too often, goes unrecognised and we take great pride in featuring their stories in this year’s shortlist.

“Congratulations to all the councillors nominated and shortlisted and I look forward to announcing the winners in November.”

2023 Shortlist – Scotland

Community Champion

Cllr Geva Blackett – Aberdeenshire Council

Cllr Duncan Cumming – East Dunbartonshire Council

Cllr Ruairi Kelly – Glasgow City Council

Cllr Alastair Redman – Argyll and Bute Council

Cllr Kirsten Robb – South Lanarkshire Council

Leader of the Year

Cllr John Alexander – Dundee City Council

Cllr Stephen McCabe – Inverclyde Council

Cllr Cecil Meiklejohn – Falkirk Council

Cllr James Stockan – Orkney Islands Council

Lifetime Legend

Cllr Jim Logue – North Lanarkshire Council

Cllr Ross Vettraino – Fife Council

Cllr Martha Wardrop – Glasgow City Council

Cllr David Watson – South Lanarkshire Council

Cllr Helen Wright – Dundee City Council

Resilience Champion

Cllr Chris Lunday – East Renfrewshire Council

Cllr Nairn McDonald – North Ayrshire Council

Cllr Angus Millar – Glasgow City Council

Cllr Samuel Payne – Aberdeenshire Council

Cllr Heather Woodbridge – Orkney Islands Council

Young Councillor of the Year

Cllr James Dalgleish – Edinburgh Council

Cllr Scott Hamilton – Scottish Borders Council

Cllr Dan Hutchison – Glasgow City Council

Cllr Kristopher Leask – Orkney Islands Council

Cllr Lana Reid-McConnell – Glasgow City Council

Scotland’s top councillors unveiled

5th annual Cllr Awards held in Dundee showcases the best of local government

LGIU Scotland and CCLA are proud to unveil the winners of the 2022 Cllr Awards, the only national awards to celebrate the vital work of local councillors across Scotland.

This evening, the Awards ceremony took place at Caird Hall with hosts Dundee City Council along with special guests and speakers, including Ben Macpherson MSP (Minister for Social Security and Local Government) and Cllr Steven Heddle (COSLA Vice President). The ceremony was also streamed live on YouTube. 

The top prize of the night for Community Champion went to Cllr David Macdonald of East Renfrewshire Council. Cllr Connor McManus of Midlothian Council walked away as the Young Councillor of the Year (below) and Cllr Maureen Chalmers of South Lanarkshire Council claimed the Resilience and Recovery Award.

Bailie Malcolm Cunning of Glasgow City Council was awarded a Lifetime Achievement Award for his service (in memoriam). And, all leaders across Scotland were showcased and recognised for their remarkable contributions to local government over the last two years. The full list of winners is included below.

Running for the 5th year, the Cllr Awards are a hugely important way to champion what councillors do locally as their work can, all too often, go unrecognised.

Competition was particularly tight this year with nearly 100 nominations received. The winners were selected by a group of judges that included senior councillors and leading stakeholders from across the sector. A link to re-watch the Awards is available HERE.

This year’s Awards were made possible thanks to the generous support of founding partners CCLA.

Jonathan Carr-West, Chief Executive, LGIU Scotland said: “We are incredibly proud to unveil the winners of this year’s Cllr Awards. During some of the most turbulent and challenging years in recent history, these councillors truly showcase the best of local government across Scotland. 

And while awards and accolades aren’t the reason councillors put themselves forward and enter local politics, their incredible service is, so often, a thankless task. That is why these Cllr Awards are so important. One day a year to say thank you to our elected members for their remarkable efforts.

“I would like to extend a huge congratulations to all of tonight’s Cllr Awards winners. We thank you for your service and look forward to hearing about your continued accomplishments in the future.”

Heather Lamont, Director of Client Investments at CCLA, said: “For the last five years, CCLA and LGIU Scotland have thoroughly enjoyed raising the profile of the best of local government across Scotland and beyond. Councillors and council leaders have delivered in so many unimaginable ways for communities and we want to shout about it!

“The Cllr Awards are all about councillors. Their achievements are often hidden in plain sight and often go unrecognised. CCLA is honoured to stand alongside these outstanding councillors and thank them for their hard work and dedication to our communities.

“Why? Because at CCLA we believe healthy investment markets depend upon healthy communities – economically, socially and environmentally. In that we all have common purpose.”