COSLA Response to the 2023/24 Accounts Commission Scotland Bulletin
The Accounts Commission’s Local Government in Scotland Financial Bulletin for 2023/24 was published today (Tuesday 28th January).
The report highlights several key concerns COSLA has repeatedly voiced about the impact of real-terms funding cuts.
- Despite an overall increase in funding in 2023/24, councils still faced real terms cuts to their budgets (3.3% according to the Accounts Commission).
- Many councils are forced to rely on reserves to continue delivering key services and meet higher service demands, which is not sustainable.
- All councils have to borrow to fund and maintain capital assets.
- Services are already being impacted, and the current state of Council finances is simply not sustainable.
Commenting, COSLA’s Resources Spokesperson Councillor Katie Hagmann said:
“Today’s 2023/24 Accounts Commission Bulletin is a stark reminder that Scottish Local Government is still facing significant financial challenges and serious risks to services.
“Councils are now being faced with a very difficult balancing act, where they must continue to deliver day-to-day services with increasingly higher demands, whilst at the same time transforming the way they deliver those services to adapt in a time of rapid change.
“While additional funding this year is a step in the right direction towards taking on these challenges, significant pressures created by pay, inflation and the changes to Employers National Insurance Contributions remain unmet. The £289m additional uncommitted revenue simply does not cover all of these, meaning more cuts to services will be required to balance budgets.
“If Scotland is to tackle issues such as rising poverty, the effects of climate change and social care reform, we need national governments to commit to sustainable, long-term investment in our local government.
“COSLA has written to the UK and Scottish Governments about funding concerns and hope to continue productive discussions with all parties to ensure our councils can continue to deliver for communities.”
Further information
Read about COSLA’s Budget Lobbying campaign: Invest Locally In Scotland’s Future.