Following a full meeting of Council Leaders today (Friday) COSLA has welcomed the increase in funding for Local Government in a context of continued financial challenge for public services. This budget goes some way to meeting COSLA’s asks, however it will take more than a single year’s settlement to restore the financial position of local authorities. COSLA will seek to work constructively with the Scottish Government on areas which require more clarity and progress.

Councils still face significant financial challenges over the coming year, with unprecedented pressures and increasing demand on the essential services they deliver for Scotland’s communities.

COSLA welcomes the Scottish Government’s engagement on this year’s draft Budget and the commitments to progressing the positive work we have achieved on the fiscal framework, an important element of the Verity House Agreement. Once complete, this framework will provide councils with greater flexibility over their budgets and enable us to continue delivering our shared priorities and meet local needs.

COSLA maintains significant concerns around the impact of the increase to employers’ National Insurance Contributions on councils and a range of partners.  We will work to ensure that councils do not have to meet the bill for this increase.

We will continue ongoing and meaningful engagement with both the Scottish Government and Parliament, to ensure Local Government receives the fair and flexible funding required to sustain and invest in its vital services – in particular social care – and meet shared national outcomes, before the final budget is presented to Parliament.

Speaking this afternoon, COSLA’s President Councillor Shona Morrison said:

“COSLA welcomes the Scottish Government’s efforts to provide Local Government with a real terms funding increase for the coming year.  At a time where public services have been squeezed to the brink following year-on-year real terms cuts, this additional funding is welcomed.

“However, this will not stop Councils from having to make difficult decisions to protect services given ongoing pressures, including inflationary increases, pay awards and the significant strain on social care. The draft Budget also includes a number of asks which add to the challenge. As the budget process progresses, we will continue to negotiate for the increase in the revenue we need to continue delivering the services that matter most to people, including in social care, as well as an increase and additional flexibility of capital funding as the budget process progresses.”

“Employer’s National Insurance Contributions are also a significant pressing risk for Local Government and Councils cannot be expected to meet the cost arising from these changes. COSLA will seek to work constructively with both governments on this and will also press for confirmation of funding as soon as possible to inform council budget setting.

“We also welcome that, in the spirit of the Verity House Agreement, the Scottish Government has committed to there being no cap or freeze on Council Tax. It is important that there continues to be a recognition of the principle that decisions on council tax are for individual local authorities to take, in a way that reflects local needs and priorities.”

COSLA’s Resources Spokesperson Councillor Katie Hagmann said:

“This draft Budget is a significant milestone in what I hope is the start of continued real terms increases in Local Government funding. Our initial analysis shows that this draft Budget provides councils with an additional, uncommitted £289m revenue alongside and £48.1m capital funding. The budget also includes additional £271m revenue for specific purposes, of which £69m is new and £91m of capital, of which £60m is new.

“As a starting point, the Scottish Government must recognise the important role councils play in the delivery of shared priorities including eradicating child poverty and our ambitious Net Zero targets, and vital local services including education, social care, leisure and waste.

“We will continue to negotiate for an increase to both revenue and capital funding, which without, councils will face difficult spending decisions.

“Several risks still exist which have not been addressed through this draft Budget. I look forward to constructive discussions with the Scottish Government over the coming months, to emphasise that the final Budget must address these risks and ensure that Local Government is fairly and adequately funded. This is essential if we are to relieve the pressures on our crucial services, such as social care, and ensure our workforce can receive the pay rise that they deserve next year.”