Covid business support: Missing millions?

A detailed analysis of how Covid-19 business support funding was distributed during the pandemic is not possible due to gaps in data, according to spending watchdog Audit Scotland.

The Scottish Government provided about £4.4 billion of grants and non-domestic rate reliefs between March 2020 and October 2021, mostly paid out to businesses by councils. The government announced a further £375 million of support in December 2021 following the emergence of the Omicron variant.

Steps were taken to improve the management of funding during the pandemic.

But there was not enough focus on gathering detailed data on how money was distributed and how quickly applicants received funding.

This means:

  • The Scottish Government does not have an analysis of the total amounts paid out from the more general schemes to different economic sectors
  • For sector specific funding administered by national organisations such as Scottish Enterprise, around 20 per cent of payments cannot currently be matched to council areas
  • Similarly, information to enable wider analysis of how funding supported specific groups, such as the female owned businesses disproportionately hit by Covid-19, is not available from Scottish Government centrally held data.

 In late 2021, the Scottish Government completed retrospective impact assessments to consider how business support funding addressed inequalities. A retrospective fraud review of funding that councils administered was also carried out.

The government is currently undertaking a large data cleansing exercise to ensure that the datasets for individual funds, including those administered by councils, are complete.

Stephen Boyle, Auditor General for Scotland, said: “These business support schemes were administered at pace in exceptional circumstances. But knowing where the money went matters.

“To get future policy development and delivery right, it will be important for the Scottish Government to fully understand how funding was used to support specific businesses and groups over the last two years of the pandemic.”

William Moyes, Chair of the Accounts Commission, said: “Councils’ fraud arrangements are generally robust, but they were heavily relied upon to ensure businesses were eligible for funding during the pandemic.

“Councils will need to continue to work closely with the Scottish Government to ensure a better picture emerges of how money was distributed.”

Responding to the Audit Scotland report, Economy Secretary Kate Forbes said: “I am pleased that both Audit Scotland and the Accounts Commission have recognised how quickly the Scottish Government was able to establish a wide ranging business support package in order to help safeguard thousands of businesses and jobs.

“This includes providing direct support to over 4,000 businesses and over 5,000 self-employed people who were facing hardship but ineligible for UK Government funding support.

“I am equally pleased this report reflects the unique and challenging context in which new support packages had to be established, and that despite the speed and scale of our response, we were able to work closely with industry, our enterprise agencies and local authorities.

“This helped to ensure the delivery of the business support funding was a shared endeavour and minimised risk and fraud. Without the efforts of our partners, we wouldn’t have been able to deliver this lifeline support at the scale and pace necessary and I thank them for working so closely with us.

“Every decision the Scottish Government has taken has centred around ensuring businesses got the support they needed when they needed it – resulting in over £4.5 billion being allocated to businesses across the country, including around £1.6 billion in rates relief – which is more generous than the other UK administrations so far.

“We will now carefully consider the findings of this report and of course any lessons will be learned, but fundamentally this report shows the decisions we took ensured lifeline support reached key businesses promptly and our economy continued to grow by 7.1% despite the necessary public health restrictions.”

Council budget to ‘boost frontline services and community improvements’

‘For two years now, we have demonstrated incredible resilience as a Council’ – Finance Convener Cllr Rob Munn

A budget ‘designed to support residents through the cost-of-living crisis and invest in local communities’ has been set by the City of Edinburgh Council.

Agreed by elected members on Thursday (24 February), millions of pounds from the Council’s annual budget for 2022/23 will be spent towards shaping a more sustainable, fair and thriving future for Edinburgh post-pandemic.

A fair city?

Councillors have agreed to direct an extra £1.1m towards easing the cost of living crisis for the city’s most vulnerable and £150 for 33,000 low-income households across the city at a total cost of £4.95m. This is on top of national cash grants announced by the Scottish Government.

Alongside this, an extra £100 will be provided for every child within a low-income home (identified via free school meals qualifications) and an additional £450k will be made available by the Council in crisis grant funding.

Frontline services will continue to be protected and the Council’s rent freeze for tenants will remain in place for another year.

Together with the Council’s ongoing £2bn programme to build 5,500 sustainable, quality Council homes and invest £1.3bn over the next 15 years in a new, green, well-connected neighbourhood at Granton Waterfront, around half a million pounds will be spent to provide social care adaptations to people’s houses to allow them to live more independently in their own homes.

£112k has been earmarked to make sure every school in the city is equipped with a life-saving defibrillator, and the Council will continue to invest £454m in capital investment for new school facilities across the city over the next ten years, together with an annual £48m to help families access 1,140 hours of funded early learning and childcare.

The roll out of 40,000 digital devices to school pupils across the city to close the digital divide will also continue, thanks to investment of nearly £18m. In recognition of pressures faced during Covid, £1m of additional funding will be provided for Children’s Services, while a further £2m will be invested adopting the recommendations of the Tanner review.

A welcoming city?

A one-off £1.1m ‘deep clean’ will remove graffiti and address street cleansing in the city centre and local wards, while quarter of a million pounds will see a new, Neighbourhood Action Team created to tackle hot spot areas of unkept land and deal with issues like overgrowth and fly tipping.

An extra £1m will be set aside for road and pavement maintenance to improve movement around the city and £450k will help to improve park facilities, creating even better green spaces in every ward and improved lighting. Meanwhile an extra £325k will be invested in playparks and £130k in expanding provisions for food growing across the city.

There will be £200k invested towards temporary toilets in select parks – repeating successful arrangements from summer 2021 – and £60k will be set aside to provide seasonal improvements and rangers to Pentland parks. An additional £60k will be contributed towards works to complete the restoration of the Portobello Kilns.

This is alongside £150k to be spent regulating and monitoring short-term lets in Edinburgh and related issues of anti-social behaviour.

A thriving and sustainable city?

An additional half a million pounds will support Edinburgh’s Net Zero ambitions, accelerating the city’s One Million Tree City programme, and £200k will be invested in Energy for Edinburgh, the Council’s publicly owned ESCO, to allow a zero-carbon energy project to move forward.

Up to £100k will be spent through Participatory Budgeting, supporting local communities to be involved in the running of the city, and £200k will be used to support local community festivals, including Edinburgh’s Diwali and the Leith Festival.

A commitment of £60k will support the re-opening of the city’s libraries after use as Covid testing facilities and the new Meadowbank Sports Centre will open later this year.

Spend of £160k will be directed towards taxi regulation and enforcement; £180k of funding will be set aside to cover potential costs relating to the temporary Hostile Vehicle Mitigation arrangements protecting the city centre; and £50k will be used to upgrade the ForeverEdinburgh website to further drive footfall to local businesses as Edinburgh recovers from the pandemic.

Finance and Resources Convener SNP Councillor Rob Munn said: “This Budget signals a more sustainable, fair and thriving future for Edinburgh post-pandemic.

“For two years now, we have demonstrated incredible resilience as a Council and as a City, banding together to support those who have needed extra help.  We have been at the forefront throughout and as life finally – and thankfully – starts to return to normal, we will continue to safeguard our services and focus on getting things back up and running.

“Our city centre and local high streets have suffered through lockdown restrictions and due to the cost of living, families on low incomes are struggling to make ends meet. The decisions we’ve made today aim to challenge these disadvantages and help our City and communities thrive in the year ahead.

“We’ll direct £1.1m each towards a ‘deep clean’ of the city centre and local areas and improving roads, helping to make Edinburgh a more welcoming place to be, and a further £1.1m will address poverty and inequality to create a fairer future.

“These are just a few of the very welcome spending decisions we’ve been able to make and I’m grateful to members in all parties for shaping these plans, but we do need to remain prudent. Times are hard and we know that the impact of Covid on our budget will continue into future financial years and significant savings will have to be made.”

Vice Finance and Resources Convener Labour Councillor Joan Griffiths said: “This Budget is about giving Edinburgh the chance to recover and grow as we safeguard our frontline services.

“The impact the pandemic continues to have on residents, on businesses and in our communities is clear. We’re now facing a cost of living crisis and it’s vital that we prioritise support for those who need it most.

“As we recover from everything the last two years have brought, investment enabled by a modest increase in Council Tax rates will help people in every single one of our communities, with the extra money raised used to maintain critical frontline services.

“We’re determined to use this budget to help us close the poverty gap, and we’ve also committed to keeping rents frozen this year for Council tenants. We’re putting more money into crisis grants, into new schools and new homes – while spending millions on community improvements.

“All of this will go towards making Edinburgh the most welcoming, thriving, and sustainable place it can be.”

This will be the SNP-Labour ‘Capital Coalition’s’ last budget before May’s council elections.

New Council Tax rates will be brought into effect on 1 April 2022 as follows:

Council Tax Bands 2022/23

A: £919.17

B: £1,072.36

C: £1,225.56

D: £1,378.75

E: £1,811.52

F: £2,240.47

G: £2,700.05

H: £3,377.94

Further details can be found at edinburgh.gov.uk/budget-finance.

Additional funding boost for councils

An amendment will be brought forward during Stage 2 of the Budget Bill to allocate an additional £120 million to local authorities. The funding represents the equivalent of a 4% Council Tax rise.

Finance Secretary Kate Forbes said whilst councils have full flexibility in setting local council tax rates, there is no requirement for any inflation-busting increases in 2022-23.

The money is being made available after the UK Government advised that the Scottish Government should anticipate further funding for 2021-22, funding which will be confirmed at the Spring Supplementary Estimates next month.

Speaking during the Stage One Budget Bill debate, Ms Forbes said: “I am in no doubt about the important role local authorities play in our communities and in helping manage our ongoing response to the pandemic. I also understand the financial challenges they face.

“The 2022-23 Scottish Budget remains fully allocated and for weeks the UK Government has been telling us not to expect further funding. That has now suddenly changed and the UK Government has advised that we should anticipate further funding for 2021-22 which will be confirmed at the Spring Supplementary Estimates next month.

“Consequently I now have some new flexibility and am pleased to confirm my intention to utilise the Scotland Reserve to carry forward sufficient funding to allow me to allocate a further £120 million of resource to local government. Councils will have complete flexibility to allocate this additional funding as they wish in 2022-23.

“Councils asked for an additional £100 million to deal with particular pressures. We have heard them and listened and we are going to go further. This will allow them to deal with the most pressing issues they face.

“At a time when people are understandably worried about the cost of living, I would point out this increase in funding would be equivalent to a 4% increase in Council Tax next year, so whilst councils have full flexibility in setting local council tax rates, I do not believe that there is a requirement for any inflation-busting increases next year.”

Councillors deserve pay increases, says COSLA

Real Living Wage claim for Scotland’s councillors

With the role of the Councillor changing dramatically over the last few years, the time is right to review the job – and its pay, COSLA said this week.

COSLA President Councillor Alison Evison says there has to be a ‘realistic’ review of remuneration for the role, and called for the Scottish Government to look at Councillors’ salaries.

The current offering of £18,604 per year simply ‘does not cut the mustard,’ said Councillor Evison, especially given Councillors work on average, 38.5 hours per week according to our research.

COSLA is now calling for Councillors to be paid the Real Living Wage, as a minimum.

Speaking as she launched the summary findings of a Councillor Remuneration Survey, Councillor Evison said:  “The time has come for a realistic look at the remuneration for the role of a Councillor.

“In less than five months, on May 5, Scotland once again goes to the polls to elect the representatives who are the closest to their communities – their local Councillors.

“The Survey we are releasing today is a pivotal opportunity to think about the kind of modern Councillor we want, and about the changes that we need to make to attract candidates who could make a real difference to communities across the country.

“Together with my elected member colleagues, I already passionately believe in local democracy as a real positive force for good within our communities – that is why we stand for election.  However to meet the next challenge we need realistic and proper remuneration that better reflects the role of a modern day Councillor.

“All of us within Scottish Local Government want to harness the power of a more locally democratic way of doing things, to enable a more diverse range of voices at the decision-making table,  and to overhaul participation in council policy-making across the country – but people need to be properly remunerated to make this rhetoric a reality.”

Councillor Evison continued: “The current salary for a councillor is £18,604 and that quite frankly does not cut the mustard.

“A survey undertaken by COSLA as part of removing barriers to elected office work clearly shows that councillors from all political parties and none feel that the time has arrived for this new, radical and bold approach to Councillors’ remuneration as part of a wider package of action to increase Councillor diversity and address financial barriers to elected office for underrepresented groups.

“We are excited about what can be achieved, but we know that to attract a more diverse range of people to the role of the modern Councillor simply will not happen without a commitment from Scottish Government to look at Councillor remuneration.

“We are not asking for anything too bold, our starting point is that as a minimum, Councillors should be paid the Real Living Wage for hours worked.

“There would rightly be uproar if Councils did not pay their employees the Real Living Wage – therefore why not Councillors, who according to our survey findings work 38.5 hours per week?

“The Real Living Wage would still only put Councillors in the same bracket as the Care/Retail and Hospitality Sectors.”

Joint pledge to ensure essential support for social care prioritised

Support for social care is to be intensified as a national priority alongside the NHS and emergency services, as staffing pressures and increased demand reflect the extent and nature of the spread and effect of Omicron.

As a result of staffing availability due to Covid,  the Scottish Government and COSLA, working with local partners across the public services in Scotland, have agreed a joint approach to maximise social care support to ensure people receive the care they need, dignity and human rights are upheld, and to avoid further pressure falling on the NHS.

Some local public services report that pressure is very significant with some health and social care partnerships being asked to prioritise capacity and identify staff who can be deployed to sustain and maintain support for some of the most vulnerable people in society. This may mean some other services are temporarily paused or reduced to redeploy capacity and expertise.

Deputy First Minister John Swinney said: “In order to protect life preserving services, and protect the vulnerable, local authorities and public services will prioritise what they deliver in the weeks ahead as a result of staffing availability due to Covid.

“That may mean some services being closed for a period or operating on reduced hours or service levels. This will free up resources to make sure we can deliver core, essential services. As soon as demands and resources allow, any affected services will resume normal operation.

“People across public services and critical national infrastructure are working hard to keep essential services going. In a lot of cases they are already being asked to be flexible to cover for absent colleagues.

“I am grateful to everyone who is helping us through this difficult period. The Third Sector has a huge amount to offer while the private sector and employers can contribute, either by releasing staff who can help in this effort,  or by supporting carers leave for family and friends who might need it.

“Local public services are delivering national priorities and programmes such as testing and vaccination programmes, delivering business grants, self-isolation grants and support, and much more.

“They have played a key role throughout the pandemic in supporting vulnerable people and key workers. That partnership between local and national government is, and will remain, essential.”

COSLA President Alison Evison said: “Once again, no matter the ask, councils along with other public services will rise to the challenge in terms of providing an appropriate local response. As the sphere of government closest to our communities across Scotland, once more Local Government will play our part in the Covid response. 

“Where pressures on staffing levels are identified, help and support for those most vulnerable as well as the life and limb services in our communities will be prioritised.  As it has been throughout the pandemic, Health and Social Care and keeping people safe will be front and centre of local prioritisation.”

Scottish Government and Cosla Joint statement  on social care support

Extra £16 million committed to tackle homelessness in Scotland

Scotland’s Councils are being given an extra £16 million to help tackle homelessness by moving people swiftly from temporary accommodation into settled homes.

The funding, to be awarded over the next two financial years, takes the total investment in rapid rehousing to £53.5 million. Rapid rehousing aims to ensure people spend the shortest amount of time possible in temporary accommodation, giving them a settled place to live as soon as appropriate.

The package includes an investment of £6.5 million in the Housing First pathfinder to support people with multiple and complex needs.

Housing Secretary Shona Robison said: “Tackling homelessness is about much more than just providing a bed for the night. Temporary accommodation is an important safety net, but most people need a settled place to stay where they can rebuild their lives.

“Rapid rehousing is based around the idea that most people need a settled home, and this new funding will help councils progress their Rapid Rehousing Transition Plans to move people as quickly as possible into appropriate, settled accommodation.

“The best way to reduce the number of households in temporary accommodation is to prevent homelessness from happening in the first place, and today’s announcement follows the recent publication of our consultation on plans for new legal duties on public bodies, highlighting the shared public responsibility to prevent homelessness in Scotland.”

Rapid Rehousing Transition Plans cover an initial period of five years from 2019. The new funding comprises £8 million in 2022/23 and £8 million in 2023/24.

Consultation on prevention of homelessness duties: Closing date 31 March 2022.

MSPs to examine the role of local government and its partners in delivering a net-zero Scotland

Hot on the heels of COP26, the Scottish Parliament’s Net Zero, Energy & Transport Committee has launched an inquiry that will explore the role of local government and its partners – private and voluntary sectors, social enterprises, and local communities – in both financing and delivering a net-zero Scotland.

MSPs will consider what councils and partners are doing practically to help reach the targets, what skillsets are being used, and what barriers are in their way. They will also probe how councils leverage in capacity and finance from the private sector and look for examples of effective partnership working that is delivering net zero.

The inquiry will focus particularly on the ambitious target of 75% overall reduction in carbon emissions to be met by 2030 (against baselines set in 1990 and 1995).

Speaking as the inquiry was launched, Committee Convener, Dean Lockhart MSP, said: “COP 26 has underlined that government at every level has a role to play in addressing climate change. In Scotland, local government powers span everything from encouraging active travel, to deciding what sort of homes get built in communities, to promoting recycling and a circular economy.

“To get results, local government must partner effectively with business, the voluntary sector and local communities themselves. This is why we want this to be a hands-on inquiry, focusing on the strengths of those relationships and practical steps being taken.

“We need to understand how council budgets are being used to drive action on net zero and how well they are leveraging in skills and private finance. And we need to understand what role the Scottish Government can play to support and – where necessary – to challenge local government to play a full role in the flight against climate change. ”

The Committee has launched a survey looking for views which closes on Friday 21 January 2022.

You can submit views here:

https://yourviews.parliament.scot/ecclr/lg-net-zero-21

COSLA launches Live Well Locally budget lobbying campaign

COSLA is today calling for adequate funding from the Scottish Government and a reversal of historical cuts as it launches its Budget Lobbying Campaign, ‘Live Well Locally’.

COSLA says urgent action is needed to address the consequences of real term cuts to the core budgets of Scotland’s 32 Councils in recent years.

The call comes as Finance Secretary Kate Forbes prepares to lay out the government’s spending plans in the Scottish Budget on December 9.

COSLA says Local Government can no longer continue to be the ‘poor relation’ it has been in recent Budgets and that December 9 presents a perfect opportunity to reset Scottish public spending in a way that empowers councils to achieve their ambition for our communities.

Speaking at a virtual news conference in Edinburgh, the COSLA President, Councillor Alison Evison, said: “Enabling people to ‘Live Well Locally’ is a shared ambition across Scottish Government and Local Government, but the resources must be provided to deliver this at a local level in line with local democratic choice.

“Sadly cuts to Councils’ core budgets over recent years have not allowed us to fully realise this shared ambition.”

COSLA’s Vice President, Councillor Graham Houston, said:  “The fact is that Scotland’s Councils are key to creating the conditions for people within our communities to ‘Live Well Locally’, whether that’s on a remote farm or in a city centre.

“People’s local environment has become even more important during the pandemic and Local Government must be empowered and funded properly to allow us to create the environment for people to ‘Live Well Locally.’  Recovery needs to start locally to tackle the key issues facing our communities and local leadership is needed for that.”

COSLA’s Resources Spokesperson, Councillor Gail Macgregor, added: “Tackling the economic and health challenges created by the pandemic needs a local dimension – all the evidence and research backs this up.

“We fully support Scottish Government’s ambitions around economic transformation but that starts in every community.

“Local Government has been the poor relation of recent Budgets and our local knowledge and links need to be used fully before we are past the point of no return.  Our communities are starting to show the neglect of an under-funded Local Government.

“Quite simply, what we need from this Budget is proper funding to provide the everyday services our communities need and deserve.”

Read the ‘Live Well Locally’ document here

Time’s running out to nominate your councillor for national award

Nominations close at midnight for the 2021 LGIU Scotland & CCLA Cllr Awards

Nominations close at midnight for the only national awards ceremony celebrating the vital work of individual councillors across Scotland.

Local Government Information Unit (LGIU) Scotland and CCLA are proud to once again host the 4th annual Cllr Awards, honouring the achievements of councillors that so often go unrecognised. 

This year’s award categories celebrate the essential and varied work of councillors and include the coveted Community Champion, Leader of the Year and New Councillor of the Year awards, alongside a new Resilience and Recovery category for 2021.

Nominations can be made by anyone who would like to recognise a councillor doing outstanding work for their community. They close at midnight on Friday 24 September with the shortlist unveiled at the end of October. 

The winners will be decided by a panel of judges composed of senior councillors and officers as well as leading stakeholders from across the sector. They will be revealed at this year’s ceremony taking place on Wednesday, 24 November. Due to the ongoing Covid related restrictions, it will be held as a hybrid event with virtual link ups to a Glasgow venue.

This year’s awards are made possible thanks to the generous support of founding partners, CCLA.

Jonathan Carr-West, Chief Executive of LGIU Scotland, said: “Local government supports all of us, each and every day. On every street, in every town, up and down the country, it is the vital work of councillors that keeps things moving. 

“Now is the time for us to support our local heroes by nominating those councillors who have stepped up to the plate during extraordinary circumstances to deliver for their communities.

“We welcome contributions from any member of the public as well as other councillors, officers and leaders. We look forward to once again receiving the highest calibre of nominations and showcasing the essential work of councillors in November.”

Strike threat facing schools and cleansing as GMB members reject latest COSLA pay offer

School support staff and refuse workers moved “a step closer” to industrial action yesterday after GMB members rejected COSLA’s latest pay offer.

95 per cent of members who participated in the union’s consultative ballot over the 2021 offer voted to reject an £850 increase for local government staff earning up to £25,000 a year.

The union will now move to a full industrial action ballot of nearly 10,000 members employed in schools and local refuse and cleansing services, increasing the possibility of autumn strikes.

GMB Scotland Senior Organiser for Public Services Drew Duffy said: “COSLA bosses have failed to table to a pay offer that reflects decent value for many workers who have been part of the frontline response to COVID-19.

“The prospect of an increase that would amount to little more than £15 a week extra in the pockets of workers like school cleaners and refuse collectors has been rightly and resoundingly rejected.

“COSLA’s dither and delay means local government staff across Scotland are still mired on pre-pandemic pay rates – there has been no “thank you” for these workers.

“It means the threat of strikes this autumn, disrupting schools and community services like waste collection and street cleansing, is now a step closer.”