Budget 2024- 25: Council Tax freeze MUST be fully funded, warns COSLA

COSLA Vice President Councillor Steven Heddle has sent a strong warning to the Scottish Government that any Council Tax Freeze must be fully funded.

COSLA’s message is a response to comments made to the media by Deputy First Minister Shona Robison on Sunday.

Councillor Heddle said: “There were a few things in the comments made by the Deputy First Minister yesterday (Sunday) that I am uncomfortable with on behalf of COSLA, our member councils and the communities that we represent.

“Firstly, the Deputy First Minister cannot decide or unilaterally say that the ‘Council Tax freeze to stay’- it’s up to 32 individual council to decide if they have a council tax freeze or not, not her government.

“Secondly, unless it is funded with additional money for each council that allows them to fund their planned Council Tax increases, then it is not fully funded, and it will be our service users who will suffer as a consequence.

“The funding for the freeze needs to be transparently additional and consolidated into our Budgets for future years.”

“The DFM also mentioned the ‘Changing shape of public sector workforce’.  Local Government’s workforce has already changed shape drastically. Between 2006 and 2018, the Local Government workforce reduced by 15% (35,000 FTE) before Scottish Government policies such as Early Learning and Childcare added staff back in from 2019.

“The Scottish Government workforce has nearly doubled since 2006; staffing in non-departmental bodies has also doubled and in Scottish Government agencies, staffing has grown by 15%.  These increases have added more than 7,000 FTE staff in just over 15 years.

“The Verity House Agreement was designed to ensure positive working between Scottish Local Government and The Scottish Government, and a focus on better outcomes and person-centred services.

“The VHA has three priorities – to tackle poverty, particularly child poverty; to transform our economy through a just transition to deliver net zero, recognising climate change as one of the biggest threats to communities across Scotland; and deliver sustainable person-centred public services.  

Local Government will be unable to contribute to these if underfunded.

“COSLA knows that Scottish Government is under pressure financially around this Budget. However, the Council Tax freeze came out of the blue and has serious financial implications.

“And any suggestions that Local Government’s workforce needs cut further will have serious consequences for communities.”

Update on a new Fiscal Framework for Local Government

Details of progress towards a new fiscal framework between the Scottish Government and Local Government have been published.

The Verity House Agreement committed the Scottish Government and COSLA to establish a new framework, which will govern how councils’ funding is negotiated and agreed.

It is intended to give councils greater flexibility over their budgets to deliver our shared priorities and meet local needs.

Publishing the update together with COSLA, Deputy First Minister Shona Robison said: “We have made good progress on the new fiscal framework, which is an important plank of the Verity House Agreement and our commitment to better partnership working with local government.

“Already many of the principles we have agreed together are being put into practice, such as improved engagement ahead of the publication of the Scottish Budget and joint working to consider new local tax powers.

“We will continue to work closely with COSLA to progress the next phase of work and continue the positive discussions we’ve had with them on behalf of local councils across Scotland.”

COSLA Resources Spokesperson Councillor Katie Hagmann said: “I welcome this update on progress towards the new fiscal framework – getting this framework in place is a priority for Local Government.

“The new framework should, when complete, give councils greater flexibility over our budgets and enable us to deliver our shared priorities and meet local needs. It will also see much earlier budget engagement.

“The Verity House Agreement commits both spheres of Government to establish a new framework, and it is positive that we have made progress this year but there is more to do, which Ms Robison and I both acknowledge.”

Progress report on the fiscal framework between the Scottish Government and local government

The Verity House Agreement

Shona Robison will lay out the Scottish Government’s 2024-25 Budget tomorrow

Tuesday’s Budget ‘focused on protecting people and public services’

The 2024-25 Scottish Budget will set out targeted funding for the Government’s key missions of equality, community and opportunity amid a profoundly challenging financial situation, Deputy First Minister and Finance Secretary Shona Robison has said.

Next week Ms Robison, who is also Finance Secretary, will outline the Scottish Government’s financial priorities for 2024-25, including the difficult choices that have had to be made as a result of last month’s Autumn Statement.

The Deputy First Minister has described that Statement as a “worst case scenario” for Scotland, telling Parliament that it failed to provide the investment needed in services and infrastructure, reflecting the UK’s economic circumstances after Brexit.

Tuesday’s Budget will provide the funding to protect people and public services from the worst effects of these economic circumstances, Ms Robison said.

The Finance Secretary added: “In the face of a deeply challenging financial situation, this Budget will reaffirm our social contract with the people of Scotland.

“The Autumn Statement was devastating for Scottish finances. The Institute for Fiscal Studies has acknowledged that it will lead to planned real terms cuts in public service spending. Scotland is facing a 9.8% cut to our capital budget for infrastructure between this year and 2027-28.

“The £10.8 million additional health consequentials we received from the Autumn Statement for next year are enough to run NHS Scotland for just five hours, and UK Government funding for justice, housing and communities, net zero, energy, and environment are all being cut in real terms. All this comes on top of more than a decade of UK Government underinvestment that has left our public services with very little resilience.

“We refuse to follow UK Government spending decisions – indeed, we are doing all we can to mitigate them. We are proud that Scotland has a social contract which ensures people are protected by a safety net should they fall on hard times. And this contract underpins this Budget, with targeted funding to protect people and public services.

“We are unashamedly targeting resources at those most in need to support them through the cost of living crisis. We are providing funding to deliver the services that people rely on most, along with a ten-year programme of public service reform. And we are using all the powers we have to create a thriving economy while providing funding to achieve our ambitious net zero targets.”

Primary Schools: Attainment at a record high, says Curriculum for Excellence report

Latest statistics show widespread improvement

The proportions of pupils in primary achieving expected levels of literacy and numeracy have reached record highs for children from both the most and least deprived areas, according to official statistics.

Overall, the Achievement of Curriculum for Excellence Levels (ACEL) 2022/23 show:

  • for numeracy, a total of 79.6% of pupils reached the levels expected in 2022/23, a rise of 0.5 percentage points compared to the previous high (79.1% in 2018/19).
  • for literacy a rise to 72.7%, up on the previous high of 72.3% in 2018/19

The gap between the proportion of primary pupils from the most and least deprived areas achieving expected levels in literacy has also decreased to the lowest on record in 2022/23.

The figures also show improvements at secondary level compared to 2021/22, with increases in attainment across the board and the gap between those from most and least deprived areas has reduced.

Education Secretary Jenny Gilruth said: “These figures show record levels of attainment across primary school level and significant improvements in secondary. I congratulate our pupils and teachers for their hard work over the last year.

“These findings are the most up to date statistics on attainment and are comprehensive across all publicly funded schools in Scotland, demonstrating a clear rise in standards above pre-pandemic levels among primary school pupils. Along with this year’s SQA results, they point to widespread rises in attainment.

“I recognise that there is no room for complacency and our programme of reform across the education and skills system will help identify where further improvements can be made and will look to drive enhanced attainment to ensure all young people meet their full potential.”

COSLA’s Children and Young People Spokesperson Cllr Tony Buchanan said: “Today’s Achievement of Curriculum for Excellence Levels publication shows increasing attainment and the attainment gap narrowing reflecting the work and dedication of schools, councils, and partners to improving children’s outcomes. Mainly, it demonstrates the efforts of children and young people themselves and this should be celebrated.

“The improvements are made despite the backdrop of severe and increasing pressure on local budgets and recruitment challenges in specific subjects and areas of the country. Earlier this year we set out clearly to the Scottish Government that additional core funding is crucial to enabling further improvement in the attainment, health and wellbeing of children and young people, as opposed to financial penalties relating to school staffing numbers.

This was particularly important in the context of falling school rolls, changes to Scottish Attainment Challenge funding and the ending of additional resource for councils to support Ukrainian refugees. We are clear that Local Government needs flexibility to provide the right support within and outwith schools, drawing on the expertise of a range of professionals.

“Councils have continued to demonstrate their ambition to further improve outcomes for children and young people across Scotland. In line with the Verity House Agreement, we will seek to engage constructively with the Scottish Government to work collectively towards this shared aim, including on further education reform in line with recent reports on the curriculum, qualifications and new national education bodies.”

National Deaf Children’s Society welcomes Scottish  Government’s response to review of audiology

The Scottish Government has responded to the report and recommendations of the Independent Review of audiology in Scotland, established following the NHS Lothian audiology scandal.

In response to a parliamentary question from Evelyn Tweed, MSP, the Scottish Government has committed to accept all of the recommendations of the review in principle, and to now establish a National Implementation Group to examine how best to implement the recommendations.

The Scottish Government response also stated that “this Implementation Group will be formed with partners from the third sector, as well as the health service, which will allow us to ensure the voices of those with lived experience are front and centre as changes are made.

The National Deaf Children’s Society has welcomed the Scottish Government’s commitment to accept all of the recommendations, and looks forward to working with Government to ensure the recommendations are swiftly and effectively delivered.

Mark Ballard, Head of Policy and Influencing for Scotland at the National Deaf Children’s Society, said:  “Deaf children and their families will welcome the publication of the Scottish Government response to the Independent Review of Audiology. The review identified multiple, systemic problems within audiology services in NHS Scotland.

“We have called for the Scottish Government to grasp this opportunity for transformative change to make sure audiology is safe and fit for purpose. Parents will be relieved that the Scottish Government has committed to accept all of the review’s recommendations in principle – although we all recognise there is much work to be done to deliver on them.

“The independent review raised significant concerns about how well the results of the specialist tests carried out on children where hearing loss is suspected were being assessed. Issues with the assessment of the results of these tests, known as Auditory Brainstem Response (ABR) tests, were identified in every Scottish health board area. So, we’re delighted the Scottish Government has committed to act on the various recommendations made in the review to improve ABR testing.

“However, these concerns were flagged to the Scottish government eight months ago, so it is absolutely vital that we act at pace to deliver these recommendations.

“One of the key findings in the report was that there has been a long term lack of investment and prioritisation of audiology services in Scotland. In order to achieve the shared ambition of making sure audiology services are safe and fit for purpose, appropriate funding will need to be found as part of implementation.

“It is therefore great that the Scottish Government has committed to ensuring that the voices of those with lived experience are front and centre of the new National Implementation Group.

“While we welcome this commitment to implement the recommendations of the review, the we look to the Scottish Government to provide more detail and expand on their current commitments, so that deaf children and their families can be sure that will be no repeat of the NHS Lothian scandal.

“We’ll continue to campaign tirelessly until we’re satisfied plans are in place to ensure hearing services across the country are fully staffed and operating at a consistent quality, with monitoring and data collection in place – all of which are crucial if we’re to fix a broken system.

“We know deaf children can achieve anything that hearing children can when they get the right support, but for this to happen their deafness must be identified at the earliest opportunity. This is why it is vitally important that children always receive high-quality and effective testing and long-term support.”

Legislation passed on council tax on second and empty homes

Increasing housing availability using the tax system

New powers enabling councils to charge up to double the full rate of council tax on second homes have been agreed by the Scottish Parliament. Councils will be able to increase the charges from 1 April 2024, with rates for the first year being based on those from 2023-24.

The change brings second homes into line with council tax policy on long-term empty homes and aims to increase housing availability by encouraging more homes to be used for living in.

New owners of properties that have previously been empty for more than twelve months will now have a six-month grace period, during which they will be protected from paying double the full council tax rate, with the potential for the six months to be extended by councils. This is subject to evidence that renovations or repairs are being undertaken by the owner with a view to the building being brought back into use.

Public Finance Minister Tom Arthur said: “I’m pleased Parliament has backed this important legislation. These changes to council tax were a commitment made in our Programme for Government and aim to make sure the tax system works as an incentive to prioritise homes for living in.

“A majority of those who responded to our consultation earlier this year supported councils being able to charge a council tax premium on top of regular rates for second homes.

“By protecting those renovating an empty home from paying the empty home premium, we are incentivising new ownership and giving them time to organise and undertaken the work necessary to bring it back into use.”

Councillor Katie Hagmann, COSLA’s Resources Spokesperson, said: “I am delighted that this important legislation has now been given Parliamentary approval. COSLA very much welcomes the ability for councils to take the decision to increase the premium on second homes in their areas.

“This supports our long-standing position that councillors who are closest to their communities should be empowered to take the decisions about what best works in their local communities, demonstrating the value of the Verity House Agreement.”  

The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023

A second home is classed as any home that is not used as someone’s primary residence but that is occupied for at least 25 days in a year.

Latest figures show that at the end of September 2022, there were 24,287 second homes in Scotland.

Second homes are currently subject to a default 50% discount on council tax. However, local councils can vary council tax charges and the majority already charge second home-owners the full of council tax, the maximum currently allowed.

Updating the maths curriculum

Specialist to lead improvements

Maths will be the first subject area to be updated as part of a new approach to improvement to ensure that Scotland’s curriculum remains engaging, forward looking and supports high quality teaching and learning.

Beginning in 2024, a maths specialist will lead on this work, alongside the National Response to Improving Mathematics (NRIM), which will include looking at curriculum relevance and transitions between primary and secondary.

The 2022 Programme for International Student Assessment (PISA) study, which published last week, showed that in Scotland performance in reading was above the OECD (Organization for Economic Cooperation and Development) average, with results in maths and science in line with the average. This was also the case in the previous survey, in 2018.

Updating Parliament, Cabinet Secretary for Education & Skills Jenny Gilruth said: “While the latest PISA stats showed Scotland has maintained our global standing, every country in the UK has seen a reduction in its PISA scores across maths between 2018 and 2022. I was clear there will be key learnings for us to address reflecting on the latest statistics covering education in Scotland.

“Wider evidence from both the 2023 national qualification results and the most recent literacy and numeracy data for primary, show clear evidence of an ongoing recovery which we are determined to build on. My view is that maths education requires to be a central focus for Government, councils and schools alike.

“I want this work nationally to be led by a maths specialist working alongside the National Response to Improving Mathematics. They will also provide a key role in driving the improvements required to improve Scotland’s performance in maths.” 

A maths national thematic inspection, with a focus on teaching and learning will also be carried out by the interim Chief Inspector in 2024, to support this work.

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.”

Scottish Government to increase financial support for Scottish students

Main undergraduate funding package now in line with the Living Wage

Scottish students will benefit from a £2,400 increase to their annual support package from the start of the 2024-25 academic year.

The new special support loan will mean that, per year, the main undergraduate funding package will rise to £11,400 and post-graduate to £13,900.

The uplift means funding support for the most vulnerable students is now in line with the student equivalent Living Wage.

Minister for Further and Higher Education Graeme Dey said: “We know that financial stress can be a significant barrier to educational success so it’s vital that we provide this uplift for students, helping them through what are tough economic times.

“This package of measures will help learners to fulfil their potential and delivers on our Programme for Government commitments to increase the student support package to the equivalent of the Living Wage, to introduce a special support payment and to review funding provision for postgraduate students.

“Along with free tuition, this uplift demonstrates the Scottish Government’s commitment to helping students – even as we face the most challenging financial situation since devolution.”

People power on the High Street

First Minister visits Dunbar businesses ahead of Travelling Cabinet

Two businesses which were bought by the local community in Dunbar after receiving Scottish Government funding have been praised for their entrepreneurial initiative by First Minister Humza Yousaf, who is in East Lothian for the 52nd Travelling Cabinet.

The First Minister and Cabinet Secretary for Rural Affairs Mairi Gougeon heard how local residents launched successful community shares offers to raise finance for the grocery store Community Carrot and the Community Bakery to bring people together and help regenerate the town’s High Street.

The walk along the High Street also included another community project, the Ridge. Volunteers who receive training through the organisation described how they have turned wasteland around Dunbar into community garden spaces. All three initiatives have received support from the Scottish Government’s Scottish Land Fund.

Other visits which took place included:

  • Deputy First Minister Shona Robison at Amisfield Walled Garden, restored and maintained by members of the local community
  • Health Secretary Michael Matheson at East Lothian Community Hospital’s new orthopaedic rehabilitation ward
  • Culture Secretary Angus Robertson at Tantallon Castle

And, on Wednesday, Transport Minister Fiona Hyslop will open East Linton Train Station, which is bringing new transport links to the community.

First Minister Humza Yousaf said: “We are committed to hearing from people across the country to help inform decision making and the projects I visited today exemplify the type of community empowerment this Government is encouraging in Scotland.

“Through awards from the Scottish Government’s Scottish Land Fund totalling almost £400,000, these three initiatives have demonstrated how local people can make a positive impact to local employment and their local economy.

“East Lothian is a beautiful part of Scotland with tremendous community spirit and I look forward to hearing more about people’s priorities during the public discussion in Haddington this afternoon.”

The Dunbar Community Bakery received £124,560 (November 2022) through the Scottish Land Fund. The Community Carrot received £119,200 (May 2019). The Ridge received two awards of £49,900 (March 2022) and £98,548 (August 2022).

List of visits not previously mentioned:

Wellbeing Economy Secretary Neil Gray – Archerfield House

Education Secretary Jenny Gilruth – Wallyford Learning Campus

Social Justice Secretary Shirley-Anne Somerville – Our Community Kitchen

Circular Economy Minister Lorna Slater – Kinwegar Recycling Centre

Community Safety Minister Siobhian Brown – East Lothian Community Action Team

Parliamentary Business Minister George Adam – Knox Academy