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

Minimum Income Guarantee in an independent Scotland

Enabling people to thrive and live with dignity

The latest paper in the Building a New Scotland series, Social Security in an independent Scotland, published this week, outlined how a Minimum Income Guarantee could ensure everyone can achieve a dignified standard of living.

The proposals included how a Minimum Income Guarantee could:

  • be set at a higher rate than current UK Government benefits and respond to real changes to the cost of living
  • enable all households to live with financial security
  • ensure those who are able achieve the minimum income level through fair and accessible paid work

Social Justice Secretary Shirley-Anne Somerville said: “With limited powers, the Scottish Government has already delivered transformative social security benefits that have made a real difference to people’s lives. Due to the policies of this government, an estimated 90,000 fewer children are expected to live in poverty this year.

“However, we want to go further and that is why we have proposed that a Minimum Income Guarantee could be introduced in an independent Scotland to ensure everyone has enough support to not only survive, but to thrive.

“The UK approach to social security has provided inadequate levels of financial support and has eroded the effectiveness of the safety net. It is only with the full economic and fiscal powers of an independent nation that we can use all the levers other governments have to tackle inequalities in Scotland.”

Social Security in an independent Scotland

Scots urged to use unspent Best Start Foods balances

Christmas letter will remind families to use money on card   

Hundreds of people who get the Scottish Government’s Best Start Foods benefit will receive a pre-Christmas reminder urging them to spend large balances which have built up on their cards. 

Letters will be sent by Social Security Scotland to cardholders who have accrued balances of £600 or more. 

Best Start Foods is money £19.80 every four weeks by pre-paid card during pregnancy and for any children between one and three years old. The payment increases to £39.60 from birth until the age of one. 

The card can be used to help with the cost of milk and healthy foods like fruit, vegetables and eggs as well as first infant formula. 

People who get the card need to activate it by calling 0808 196 1687 – then it is topped up every four weeks. 

However, a small number of people who get it have either never activated the card or stopped using it – meaning balances build up. 

It’s this group who are being reminded they have money to spend. 

After receiving the first of these letters, more than 100 cards have since been activated and tens of thousands of pounds spent by recipients. 

Cabinet Secretary for Social Justice Shirley-Anne Somerville said: “We want to ensure people get access to every bit of financial support to which they are entitled. 

“It’s part of our approach to social security to make sure that we treat people with dignity, fairness and respect and that they’re not obstructed or ignored.

“Our message to people who get Best Start Foods is to look out their cards and check balances. It’s simple to do, either online or at cashpoints. 

“The money can be a big help to families dealing with the costs of Christmas and New Year.” 

Edinburgh MSPs unite to demand funding for new Edinburgh Eye Pavilion Hospital

A cross-party group of Edinburgh MSPs have come together to write to the Cabinet Secretary for Health, Michael Matheson, highlighting the urgent need to fund a new Eye Pavilion in Edinburgh.

MSPs representing Scottish Labour, Scottish Conservatives, the Scottish Liberal Democrats, Alba, and the Scottish National Party have all co-signed the letter, in the run up to the capital spending allocation.

This letter reflects the strength of feeling of residents, right across Edinburgh towards the need for a new Eye Hospital in the city.

MSPs request Michael Matheson set out a clear timetable for the construction of a new Edinburgh Eye Hospital, after the current Eye Pavilion was declared not fit for purpose in 2014.

The MSPs have also called on Michael Matheson to consult with patients, visual impairment charities and elected representatives to achieve the best outcomes possible for Edinburgh and Lothian Residents.

The joint-letter follows a meeting of Edinburgh MSPs, Sight Scotland, Visibility Scotland and RNIB, at the Scottish Parliament on Thursday 30th November, to discuss the situation in the Princess Alexandra Eye Pavilion.

During the meeting, MSPs heard moving testimonies from patients and staff about the dire state of current facilities and why a new hospital is so vital going forward.

All parties involved emphasised that continuing to rely on the current Princess Alexandra Eye Pavilion is not sustainable and will lead to deteriorating outcomes for patients and staff.

The MSPs who signed the joint letter are Sarah Boyack, Daniel Johnson, Foysol Choudhury, Miles Briggs, Jeremy Balfour, Ben Macpherson, Sue Webber, Alex Cole-Hamilton and Ash Regan.

The MSPs in attendance at the breakfast briefing were Sarah Boyack, Daniel Johnson, Miles Briggs, Ben Macpherson, Sue WebberAlison Johnstone and Jeremy Balfour sent staff members, as they had previous engagements.

Commenting on the letter, Sarah Boyack said: “I am glad that MSPs across Edinburgh were able to come together to campaign for such a vital project.

“None of our constituents deserve to be relying on facilities that have been designated not fit for purpose, for over a decade.

“Michael Matheson needs to take note of the strength of feeling for this project – delivering the new Eye Pavilion is a priority for Edinburgh Residents 

“As Edinburgh MSPs, we will continue to work together to ensure the best outcome for our constituents, and the city.”

Tackling violence against women and girls

Equally Safe strategy refreshed

A national strategy to prevent and address all forms of violence against women and girls has been renewed to build on recent progress.

Equally Safe, a joint strategy with COSLA, was first published in 2014, and is backed by the Delivering Equally Safe Fund that is providing £19m per year to support 121 projects from 112 organisations.

One significant milestone reached, supported by the strategy’s aims, saw the Domestic Abuse Act passed by Parliament in 2018, which created a specific offence of domestic abuse that covers physical and psychological abuse as well as coercive and controlling behaviour.

Published today during 16 Days of Activism Against Gender-based Violence, the refreshed strategy is focussed on increasing collaboration across sectors to tackle the attitudes and values that result in violence against women and girls.

A delivery strategy will be published next Spring and will set out further actions to achieve that goal.

Victims Minister Siobhian Brown said: “Violence against women and girls has no place in our society. The impact of violence is wide-ranging and can have a long-term lasting effect on the lives of those affected, their families and communities. 

“This refreshed strategy builds on progress made to date in raising awareness of the prevalence and harmful effects of violence against women and girls, strengthening the law, and providing support and resources to public and third sector workers helping those affected. 

“Our Delivering Equally Safe Fund focusses on early intervention and prevention, as well as support services and I am pleased that around 32,000 adults and children benefitted last year.

“There remains work to do and sustained action is needed. That is why our future vision focuses on finding opportunities to work collaboratively and constructively whenever possible to stamp out violence wherever we see it and preventing it happening in the first place.” 

COSLA’s Community Wellbeing Spokesperson, Councillor Maureen Chalmers said:  “For nearly a decade, COSLA and the Scottish Government have worked in partnership to eradicate violence, abuse and exploitation of women and girls from Scotland.

“Our collaborative efforts have been undertaken with specialist services, public sector organisations, and local authorities. These have propelled us forward in building a more equal and safer Scotland for everyone.

“These firm foundations have allowed us to refresh the Equally Safe Strategy. It emphasises the importance of prevention, collaborative leadership, and reaffirms the unwavering commitment from both local and Scottish governments to achieve our shared goals.”

 The refreshed Equally Safe strategy

Humanitarian aid for Afghanistan

Support for people affected by earthquake disaster

Funding of £250,000 will be provided to aid charities responding to those affected by the devastating earthquake that struck Afghanistan in mid-October through the Humanitarian Emergency Fund (HEF).

Scottish Catholic International Aid Fund (SCIAF) and Christian Aid will receive funds from HEF to help hundreds of families, who have seen their homes destroyed by the earthquake and help them to rebuild their lives.

Christian Aid will support 1,550 people from 310 households, which have been affected through multi-purpose assistance while SCIAF will provide winter items to 1,050 people from 150 households, who are facing into a harsh winter after losing their homes.

International Development Minister Christina McKelvie has pledged the funding which will help thousands of people impacted by the catastrophe survive this winter where temperatures in Afghanistan can plunge to lows of -21°C.

Ms McKelvie said: “Our thoughts are with the thousands of people in Afghanistan struggling to survive and facing into an uncertain winter in the aftermath of the catastrophic earthquake that hit Herat in October.

“The damage was substantial, with over 10,000 homes completely destroyed. Seven weeks on, the task of rebuilding is a complex one that will take time.

“HEF funding will help people start to rebuild their lives and look towards 2024 with a greater sense of optimism and hope. The Scottish Government is committed to supporting our partners at HEF to provide the humanitarian aid needed to make a positive difference in Afghanistan.”

Chief Executive of SCIAF Lorraine Currie added: “SCIAF works to prevent disasters around the world – but when they do strike, we respond as soon as possible through local partners. This allows us to work quickly and effectively in some of the most challenging places on earth – like Afghanistan – ensuring we serve those most in need.

“We are incredibly grateful to the Scottish Government and the people of Scotland for this funding support.”

Christian Aid’s Country Manager for Afghanistan Subrata De said: “As we move into the colder winter months the situation for communities where homes have been damaged or destroyed remains bleak.  Resilience is very low due to the multiple challenges they are already facing including hunger and food insecurity. 

“We are grateful for the Scottish Government funding which will allow us to provide cash support, allowing people to buy the things they need like warm clothing, blankets and food. This support complements our existing and ongoing work through local partners in the Herat region.”

The Humanitarian Emergency Fund provides aid in the aftermath of a crisis. 

Helping Ukrainians into longer term housing

Steps to provide displaced people with accommodation stability

Ukrainian people seeking refuge from the war will be supported to access longer term housing, under plans to further reduce the number of displaced people in Scotland living in temporary welcome accommodation.

From Thursday 7 December, Ukrainians arriving in Scotland for the first time through the Super Sponsor scheme and entering welcome accommodation will be supported by local authorities to identify two longer term accommodation options. Temporary welcome accommodation will be available for a maximum of six months, but may be extended in certain circumstances.

Ukrainians who are already in welcome accommodation will also be supported to find two longer term accommodation options. Where a displaced person chooses to make their own accommodation arrangements after six months and has declined offers, a maximum of 60 additional days in welcome accommodation will be permitted to allow them to safely move on.

From January, displaced people who have previously stayed in welcome accommodation and have left for an extended period will not be able to return in most cases, but will be offered help and advice to identify alternative housing options.

Social Justice Secretary Shirley-Anne Somerville said: “Over 26,000 people from Ukraine have arrived in the UK with a Scottish sponsor, more than 20,500 of them through our Super Sponsor scheme.

“Our welcome accommodation ensures that we can offer everyone who needs it an initial safe place to stay. However, we do not want people to spend longer than necessary without a settled place to call home.

“Thanks to our close working with local authorities and the third sector, the number of Ukrainians living in welcome accommodation has more than halved over the past year. These next steps will help us support even more people to find safe, settled accommodation for the longer term. This will provide much-needed stability, helping them set down roots and make the most of local opportunities.

“We will work with local authorities and COSLA to help meet the needs of individuals and families – helping those who need additional support and considering affordability, employment and education. Many Ukrainians choose to make their own accommodation arrangements and the resettlement and housing teams in our local authorities can also support this.”

COSLA Community Wellbeing Spokesperson, Councillor Maureen Chalmers said: “Since Russia’s illegal invasion of Ukraine, Scottish Local Government has worked in strong partnership with Scottish Government, third sector colleagues and the Ukrainian community to support displaced people seek refuge and safety in Scotland.

“Throughout this period, we have seen an exceptional level of public support. This has included thousands of people offering rooms in their homes to support hosting arrangements; a flourishing network of community and third sector activity to welcome Ukrainian households into local neighbourhoods; and support from colleagues across public services to ensure that guests have access to vital services which support resettlement and integration.

“This announcement is the next step in ensuring Ukrainian households who have arrived in Scotland have access to a home which meets their needs. Prolonged stays in welcome accommodation are unable to support the long-term integration needs of displaced people.

“Local Government is committed to supporting displaced households settle into longer term accommodation and integrate into local communities to ensure they benefit from the enhanced wellbeing that this brings.”

Backing for proposal to reduce domestic homicides and suicides

A new approach aimed at reducing domestic abuse-related homicides and suicides has received overwhelming backing.

The proposals for a Domestic Homicide and Suicide Review Model would help identify what lessons can be learned and applied following the death of a partner, ex-partner, or child where abuse is suspected. Ministers hope that this will ultimately lead to fewer such deaths.

Nine out of 10 people who took part in a consultation – including those with direct experience of domestic abuse and bereavement – backed the Scottish Government’s plans.

There was also substantial support for the inclusion in the Model of cases involving violent-resistant homicide, where the victim kills the perpetrator of abuse.

The Model will now be developed by the Scottish Government’s Domestic Homicide and Suicide Review Taskforce, Model Development Subgroup and Task and Finish Groups.

Justice Secretary Angela Constance said: “Nobody should die at the hands of a partner. While overall homicide rates are falling, there remains a significant number involving domestic abuse, where the vast majority of victims are women.

“Our plans would see agencies across justice, health and social care, the third sector and beyond work together to establish what could be done better. It is absolutely right that these reviews should also happen in cases of suicides, as well as homicides, where abuse has been a factor.

“By identifying areas for change and improvement, we can help to prevent further deaths and give a voice to those who have been killed.”

EmilyTest founder and CEO Fiona Drouet, who will chair the Domestic Abuse Related Suicide Task and Finish Group, said: “The decision for Scotland to include domestic abuse-related suicides in the new review model reflects a country that is progressive and recognises the extent of the harms caused by domestic abuse. This decision evidences that our Government values the voices of professionals and lived experience.

“After losing a loved one to suicide, families shouldn’t encounter obstacles when asking authorities to investigate further, regardless of whether the victim was known to domestic abuse services or not.

“These reviews will be absolutely pivotal in gaining valuable lessons and will go some way to helping us build a safer society.  It signifies a positive move towards understanding and addressing the complexities surrounding domestic abuse and its consequences. I feel very privileged to be invited to chair the Task and Finish group and, after losing our daughter in these circumstances, I wholeheartedly commit to working with valued colleagues in the field to get this right for everyone.”  

Head of the School of Social and Political Science at the University of Edinburgh John Devaney, who chairs the Model Development Subgroup, said: “The findings from the consultation on the key elements of the new domestic homicide and suicide review process is an important milestone in the considerations of the Taskforce.

“It is positive to note the overwhelming support for the core purpose of the review process, and the key aspects that the Taskforce should ensure are covered by future reviews. I’m very grateful to everyone who took the time to contribute, particularly those with experience of losing a family member to fatal domestic abuse.”

Domestic Homicide Reviews: Consultation Analysis