Ellie Ames 13 December 2023

Quarter of Scottish councils fear bankruptcy

Quarter of Scottish councils fear bankruptcy  image
Image: Number1411 / Shutterstock.com.

Nearly a quarter of Scottish councils fear they will be unable to balance their budget next year, new research shows.

The majority (97%) of respondents to a survey by the Local Government Information Unit (LGIU) Scotland also said they would be increasing fees and charges.

The first LGIU State of Local Government Finance in Scotland report, which received responses from around 75% of councils, also found that nine in 10 authorities planned to use their reserves to balance their budgets for 2024-25.

Adult social care and children’s services were considered the greatest shortest-term pressures on council finances, with adult social care also ‘by far’ the greatest long-term pressure.

LGIU chief executive Jonathan Carr-West said: ‘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 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.’

If this article was of interest, then check out, 'Can local government take much more?', 'Preventing future Section 114 notices' and 'How to fix local government finance'.

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Planning Enforcement Officer

Durham County Council
Grade 7 £31,015 - £31,811 (pro-rata)
 Are you passionate about protecting and enhancing the built environment? Do you enjoy investigating issues, solving problems, and working with a wide Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,976 (approx.) £13.27 per hour
Join our School Crossing Patrol Service!   Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit Durham
Recuriter: Durham County Council

Teacher of Maths

Durham County Council
£32,916 - £51,048 pay award pending
We are looking for a maths teacher to join our school from Easter 2027. This post is suitable for ECT or more experienced teachers.    As a passionate Durham
Recuriter: Durham County Council

Office Manager

Durham County Council
£29,071 - £32,046 pro rata
37 hours per week- Term Time Only Required to start 12.04.2027   About Us Stanley Crook Primary School is a caring, inclusive and ambitious school com Stanley
Recuriter: Durham County Council

Head of Building Control

London Borough of Merton
MGC - £69,807 - £74,790 per annum
Help shape Merton’s future Merton, London (Greater)
Recuriter: London Borough of Merton
Linkedin Banner