Councils will receive a record £14 billion funding settlement, according to provisional details published by the Scottish Government last night.
Local authorities have each been allocated a share of £13.9 billion to fund their day-to-day activities, including £6 million to support the expansion of free school meals, £242 million for teacher pay rises and more than £266 million for local government pay deals.
Ministers have also made available a further £144 million to enable local authorities to freeze Council Tax rates at their current levels, equivalent to an above-inflation 5% rise in council tax nationally. The Scottish Government is in talks with COSLA over how this will be allocated.
Deputy First Minister and Cabinet Secretary for Finance Shona Robison said: “In the face of a profoundly challenging financial situation, we are making available record funding of over £14 billion to councils – a real-terms increase of 4.3% on the previous year – should they agree to freeze council tax.
“The £144 million for the council tax freeze would be equivalent to an above-inflation 5% rise in council tax nationally.
“We recognise the crucial role councils play in their communities, which is why we have increased their overall share of the Scottish Budget.
“We have made no secret of the tough choices that have been required to balance our Budget, after an Autumn Statement that failed to provide the funding Scotland needs for its public services. While I know councils had sought more funding, the settlement confirmed today represents a fair and sustainable offer.
“We have chosen to invest 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 with a record settlement for local councils at its heart.”
The Deputy First Minister’s comments are a response to a statement made on Thursday by local authority umbrella body COSLA. Scotland’s council leaders argue that their funding has been CUT.
The Scottish Government has delivered a major blow to communities and has put councils at financial risk with a cash cut to Local Government in its draft Budget (published on 19th December) and no provision for inflation or pay increases, COSLA said.
COSLA Leaders described the draft Budget as not only leaving councils at real and significant financial risk for the coming year, but as it stands, it will mean cuts in every community in Scotland and job losses across Scottish Local Government.
Following a full meeting of Council Leaders on Thursday COSLA said that whatever way the Government presents the figures, the reality is that once again the people in our communities have been left at the end of the queue. That is why we are calling for urgent discussions with Scottish government to ensure a meaningful negotiation on the budget takes place before the final budget is presented to Parliament.
COSLA’s President Councillor Shona Morrison said: “COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.
“The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.
“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax. With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”
COSLA Vice President Steven Heddle said: “Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.
“The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.
“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland.
“As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services. This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives.
“Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”
Consultation on Learning Disabilities, Autism and Neurodivergence Bill
Views are being sought on proposals to better protect, respect and champion the rights of people with learning disabilities, autistic and neurodivergent people.
The Learning Disabilities, Autism and Neurodivergence Bill consultation includes proposals that would provide benefits in many areas of life, including more inclusive communications and mandatory training in the public sector to address the stigma and barriers people often face.
Mental Health Minister Maree Todd said: “People with learning disabilities, autistic people and neurodivergent people make up around 15% of our society and many of them think and see the world differently. This shouldn’t cause them to be stigmatised and disadvantaged and the Scottish Government is committed to ensuring that their rights are respected.
“This public consultation has been designed alongside people with lived experience, and we have worked closely with third sector organisations and support providers to ensure those who know the challenges best are at the heart of any action we take.
“I am keen to hear views from as many people as possible on our proposals. I am confident that, together, we can build a fairer Scotland for all.”
Hannah Roussel and Jim Gault, Lived Experience Advisory Panel (LEAP), co-Chairs said: “This public consultation marks what we hope will be a significant milestone on the journey towards the fair and inclusive society Scotland aspires to be.
“If we get this right, Scotland has the opportunity to become a leading light, not just in the UK, but across the world. We are grateful to the Scottish Government for involving all of us on the LEAP so committedly, seeking always to place the voice of those with lived experience at the heart of this process.
“We on the LEAP are agreed that the status quo is not an option; there must be accountability, people with lived experience must be included, and what benefits us benefits all.
“We urge everyone to seize this unique opportunity to help define the Scotland we all aspire to build here and now, and for generations to come, by engaging with and responding to this consultation.”
Lothian Labour MSP, Sarah Boyack has written to Cabinet Secretary for Health, to ask him for clarity over when the decision will be made over the New Edinburgh Eye Pavilion.
In a November meeting organised by Ms Boyack between patients and Michael Matheson, the Cabinet Secretary assured patients that any decision over the Eye Pavilion would be made in December, in line with the budget.
However, a Scottish Government spokesperson has now claimed that the decision will not be made until the Spring.
Delaying this decision will force patients to rely on outdated services and face further cancelled appointments.
Campaigners were hoping that the current budget would provide long awaited clarity for whether the new facility would get the go-ahead.
Sarah Boyack MSP said: “Michael Matheson has fundamentally misled patients.
“To tell patients that the decision would be made in December, only for it to be pushed back to the Spring is a slap in the face for all those who need a new facility.
“Michael Matheson needs to confirm on the record when the capital spending will be announced and apologise for misleading patients.
“Every day the Scottish Government delays, the project becomes more expensive, and the current Eye Pavilion deteriorates further.
“If Michael Matheson does not provide clarity now, we are heading towards a crisis for eyecare services in Edinburgh.”
Craig Spalding, Chief Executive of Sight Scotland, added: “We’re concerned the Scottish Government’s plans to review this project again in the spring is too little too late.
“It’s now 10 years on since the current hospital was declared unfit for purpose and by delaying the decision again is ignoring the critical need of patients and staff attending the current hospital.
“As time goes on, the building deteriorates further and the risk to people’s safety increases. People with visual impairment and eye conditions deserve better.”
Delivering the building blocks for Scotland’s future?
More than £5 billion is being invested in building a fair, green and growing economy which creates jobs, supports businesses and helps finance Scotland’s public services and the transition to net zero.
Despite one of the most difficult financial climates since devolution, the Scottish Budget 2024-25 maintains its focus on core priorities and drives forward a government-wide approach to economic transformation.
Measures include allocating £67 million to kickstart a five-year commitment to develop Scotland’s offshore wind supply chain and ensure the country reaps the benefits of the global expansion in wind power. This brings total Scottish public sector support for offshore wind to £87 million next year.
The Budget also boosts annual investment in digital connectivity from £93 million to £140 million in 2024-25, delivering critical infrastructure to enable businesses to innovate and grow while connecting more than 114,000 homes and companies in rural areas to gigabit-capable broadband through the R100 programme.
Since entrepreneurship is at the heart of Scotland’s economic strategy, a further £9 million investment in the Techscalers programme will support the country’s best start-ups with world-class mentoring. The Scottish Government is also prioritising the implementation of Ana Stewart and Mark Logan’s Pathways report, focused on helping more women to start and grow businesses.
The Budget also includes:
putting almost £2.5 billion into public transport to provide viable alternatives to car use, and a further £220 million in active travel to promote walking, wheeling and cycling
providing £358 million to continue accelerating energy efficiency upgrades and installation of clean heating systems
increasing the education and skills budget by £128 million
investing £49 million to promote the re-use of resources and reduce consumption, modernise recycling and decarbonise waste disposal as part of Scotland’s transition to a circular economy
Wellbeing Economy Secretary Neil Gray said: “Our focus is on creating new opportunities for a highly productive, competitive economy, providing thousands of new jobs, embedding innovation and boosting skills.
“We are using all the powers we have to support business and to achieve our ambitious net zero targets. Our strategic investment in offshore wind will stimulate and support private investment in the infrastructure and manufacturing facilities critical to the growth of the sector, and we are delivering a real-terms increase in the education budget to help boost skills and increase productivity. As a priority, we will also consult on options for improving the capacity of local authority planning services.
“Scotland’s finances face a worst-case scenario of underinvestment, which means we must make the difficult choices necessary to focus our limited resources on what will deliver most effectively for people and businesses.
“We’ve seen an Autumn Statement that prioritised a tax cut over investing in public services and infrastructure. The Scottish Government cannot follow this, and has not shied away from taking the tough decisions needed to protect and grow this country’s economy.”
COSLA: Council Tax Freeze is NOT Fully Funded
The Scottish Government has delivered a major blow to communities and has put councils at financial risk with a cash cut to Local Government in its draft Budget (published on 19th December) and no provision for inflation or pay increases, COSLA said.
COSLA Leaders described the draft Budget as not only leaving councils at real and significant financial risk for the coming year, but as it stands, it will mean cuts in every community in Scotland and job losses across Scottish Local Government.
Following a full meeting of Council Leaders yesterday (Thursday) COSLA said that whatever way the Government presents the figures, the reality is that once again the people in our communities have been left at the end of the queue.
That is why we are calling for urgent discussions with Scottish government to ensure a meaningful negotiation on the budget takes place before the final budget is presented to Parliament.
Speaking yesterday afternoon, COSLA’s President Councillor Shona Morrison said: “COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.
“The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.
“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax.
“With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”
COSLA Vice President Steven Heddle said: “Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.
“The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.
“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland. As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services.
“This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives. Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”
Budget provides continued investment in social care
The Independent Living Fund, which supports disabled people, is to reopen to new applicants after receiving £9 million investment as part of the 2024-25 Scottish Budget.
The funding forms part of the £19.5 billion budget for NHS recovery, health and social care and will support around 1,000 new applicants.
The initiative was closed to new applicants by the UK Government in 2010, with payments to the 3,000 existing recipients taken over by the Scottish Government in 2015. Scottish Ministers committed to reopening the fund in September as part of the Programme for Government.
The health and social care budget also includes £13.2 billion for frontline NHS Boards – a real terms uplift, with additional investment of more than half a billion pounds. Funding for social care next year will be over £1 billion higher than in 2021-22. The health increase is more than the total block grant consequentials announced in the autumn statement which means that resource funding for health and social care has more than doubled since 2006-07.
On his visit to Independent Living Fund Scotland in Livingston yesterday, Cabinet Secretary for NHS Recovery, Health and Social Care Michael Matheson said: “I’m pleased that we will be able to help more disabled people in Scotland to lead full and independent lives as part of our continued support for social care services.
“We are investing in the development of the National Care Service so that everyone has access to consistently high-quality social care, whenever they need it. This will help to remove barriers, tackle inequalities and allow people choice – as well as easing the pressure on Scotland’s NHS and continuing the integration of community health and social care support.
“This also builds on our other commitments in this sector including an £840 million increase in funding for social care over the life of the Parliament and an additional £230 million to support a pay uplift for social care workers to a minimum of £12 an hour.
“The Budget provides funding of more than £19.5 billion – protecting health and social care delivery in the face of unprecedented fiscal pressure. However, despite this investment, hard choices along with greater efficiencies and savings will need to be made. This is because the Scotland’s healthcare system is under extreme pressure from the ongoing impacts of Covid, Brexit, inflation and UK Government spending decisions.”
Executive Officer of the Independent Living Fund Scotland Peter Scott OBE said: “Following yesterday’s budget announcement of an additional £9m investment into ILF Scotland in the coming year, we welcome the opportunity to expand the work of our organisation and assist up to 1,000 more disabled people.
“Whilst we feel privileged to have the opportunity to re-open the Fund to new applicants, we do not underestimate the level of responsibility that accompanies it.
“We are very grateful to the disabled people, their organisations and other key stakeholders for lending their expertise and supporting us with the co-production of the re-opening of the Fund, work which is already well under way.”
The Scottish Government will not appeal the judgment in the judicial review challenging the UK Government’s use of a Section 35 order to block the Gender Recognition Reform (Scotland) Bill.
The UK Government’s intervention and subsequent judicial ruling means the Bill cannot proceed to Royal Assent and be enacted.
Social Justice Secretary Shirley-Anne Somerville said: “The Gender Recognition Reform Bill was passed by a majority of the Scottish Parliament and we will not be withdrawing it. However, the UK Government’s unprecedented use of Section 35 means the Bill cannot proceed to Royal Assent.
“If the current UK Government is willing to work together and indicate the changes they would find acceptable we will happily sit down with them. However, it seems that my counterparts at Westminster will not do this, and it remains to be seen what a future government will do.
“We are unwavering in our commitment to supporting and empowering LGBTQI+ people in Scotland. We will continue to work across government towards a society that is equal and fair, and where everyone can live as they are.
“Devolution is fundamentally flawed if the UK Government is able to override the democratic wishes of the Scottish Parliament. We will be ready to challenge its use on future Scottish legislation, and to protect the democratic will of this parliament.”
The UK Government will seek expenses from the Scottish Government for the Section 35 legal battle over the Gender Recognition Reform Bill, Alister Jack has confirmed.
Scottish Trans told supporters: “We are bitterly disappointed about this, as we know many of you will be. The current process to update the sex recorded on our birth certificates is intrusive and difficult.
“Last year’s Bill was not perfect, but it was a huge step forward towards a much fairer and simpler process – so that in those rare but important moments in life where you need your birth certificate you can hand over ID that shows who you truly are.
“So many of us worked really hard to help people understand why the law needed to change – and it’s important to remember that we succeeded, with a large majority of our MSPs voting in favour of the changes last year.
“We’re pleased that the Scottish Government intends to keep the Bill on the Scottish Parliament’s books, meaning that even though it can’t currently gain royal assent and become law, it could at a later date if the Section 35 order was lifted. While it’s clear that there is no path forward with the current UK Government to removing the block on the Bill, we hope that we won’t have to wait too long until a time where the political situation changes.
“When it does, we will be strongly urging the Scottish and UK Governments to get round the table so that the Bill can move forward, and so Scotland can join the growing number of places around the world with progressive, fair and modern laws that respect trans people’s human rights.
“We were pleased to hear the Scottish Government restate their support for trans equality, and to other commitments they have made to improve our lives.
“There’s a lot more to do to make Scotland (and the wider world) a place in which trans people can live happy and healthy lives beyond gender recognition reform, and we will be working as hard as we can to contribute to those positive changes.
“This is a setback and a disappointment – but once we’ve had a minute to catch our breath and rest over the holidays, we will get right back to work.
“We know that some of you will have been holding off on applying for a Gender Recognition Certificate using the current system, in the hope that you could use the fairer and simpler process that, if the UK Government had made a different choice, might even have just about been in place by now.
“Given the uncertainty around when things might change, if you want to apply for a GRC we think that the best thing to do would be to use the existing application process. We are always happy to help you make sense of how to apply – so please be in touch if you need us.
“We know that others might be unable to apply using the current process, because of all of the barriers it contains. We’re thinking of you today. If you’re upset, frustrated, disappointed – we are too. Please reach out and talk to the people around you if you need to.
Social security support to help eligible people with heating costs
Money to help with heating costs is on its way to around 400,000 people on low incomes through the Scottish Government benefit Winter Heating Payment.
Winter Heating Payment is paid in batches to eligible clients, with the first payments paid this week. The majority of people will receive their payment by the end of January 2024.
This annual payment of £55.05 targets low-income households that have additional need for heat, including households with young children, disabled people and older people, providing stable, reliable support every winter.
Winter Heating Payment was first paid in winter 2022-2023 and replaces the DWP Cold Weather Payment. Unlike the DWP benefit that was reliant on the weather being sufficiently cold for a sustained period of time, Winter Heating Payment guarantees that everyone who is eligible will receive a payment every year, no matter the weather.
The majority of people eligible for Winter Heating Payment who were already getting qualifying benefits during the week of 6- 12 November will get it automatically, with no need to apply. It is paid through Social Security Scotland and people will get a letter to let them know they are eligible.
Social Justice Secretary Shirley-Anne Somerville said: “We are investing around £22 million this winter through Winter Heating Payments to support 400,000 people on low incomes across the country at a time when they are struggling with the cost of living crisis and higher energy bills.
“Winter Heating Payment guarantees that everyone eligible will get a payment every year, rather than the UK Government approach of requiring the weather being sufficiently cold for a sustained period of time.
“Our annual, reliable payment will support people on low incomes with the costs of heating their homes throughout the winter, we know it is harder for these households to spend more money to heat their homes.
“The vast majority of people will receive the payment automatically either this month or next.”
The UK Government’s Cold Weather Payments triggers a £25 payment only when the average of the mean daily temperature recorded for 7 consecutive days was equal to or below zero degrees. In contrast, the Scottish Government’s Winter Heating Payment provides reliable financial support through an automatic £55.05 payment, no matter the weather.
An individual may be eligible to receive Winter Heating Payment if they are in receipt of any of the following benefits: Pension Credit, Income Support, income-based Jobseekers Allowance, income-related Employment and Support Allowance, Universal Credit and Support for Mortgage Interest.
As with the UK Government’s Cold Weather Payments, additional qualifying criteria for some of these benefits may also need to be satisfied, for example in relation to disability premiums paid to the client or if a disabled or young child is in their household.
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.”
A leading housing and homelessness charity has claimed the Scottish Government has no plan to arrest the continued decline in social housing delivery.
Shelter Scotland made the claim last week in response to figures showing that social house building has slowed down significantly.
The numbers show the number of new social homes completed in the 12 months to September 2023 was down 2%, the number new social homes approved was down 18%, while the number of new homes started was down an alarming 29% compared to the year before.
Shelter Scotland Director, Alison Watson, said last week:“The alarming decline in the delivery of social homes shown in today’s figures reflects Scottish Government choices.
“Ministers can’t claim to be ignorant of what this means; it means that an already devastating housing emergency will get worse and continue to devastate lives.
“Local housing officers, charities, and the experts in its own working groups have repeatedly and clearly told the Scottish Government that more social homes are needed to effectively fight the housing emergency and reduce the numbers of people trapped in temporary accommodation, but their words have gone unheeded.
“Scottish Government choices made the decline shown in today’s figures grimly predictable.
“Unless we see something different in the budget the only possible conclusion we can reach is that the Scottish Government has no serious plan to tackle homelessness and end the housing emergency.”
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.”
