William Eichler 15 April 2019

Report calls for ‘fundamental review’ of council funding

A new report has called for a review of local government funding in Scotland and argues there needs to be a fairer system of property taxes and environmental charges.

Unison and the Jimmy Reid Foundation are today launching a new report which argues that councils have borne the ‘heaviest burden’ of austerity.

The total revenue funding for councils has fallen by 8% in real terms across eight years, the report states.

There has also been a 22% reduction in culture and leisure spending; a 34% reduction in planning; almost 15% reduction in roads spending; and almost 10% in environmental services spending.

In this context, Unison and the Jimmy Reid Foundation set out a number of proposals for reforming council organisation and funding.

As well as a new system of property taxes and environmental charges, the report urges unions to consider how municipalisation of buses, energy, and other public services could be appropriately pursued.

It also suggests that unions and others should explore how local authority debts and PFI/PPP contracts can be taken over by the Treasury. This would save local government ‘many billions’ in interest charges each year.

‘Over the years, the balance of funding for public services through local government has shifted from approximately 50% coming from national government to 50% being raised directly by local authorities, to 85% of funding coming from central Government and 15% being raised directly by local authorities,’ said Mike Kirby, Scottish secretary of Unison.

‘Together with an overall reduction in funding, during a period of austerity, this has resulted, in severe financial pressures and impacted upon, the quality and delivery of vital public services.

‘Politicians in all spheres must create the time and space for a fundamental review of funding local government. This report is a contribution, to that essential debate.’

Professor Mike Danson, the lead author of the report said: ‘Within the constraints of the fiscal powers devolved under successive Scotland Acts, there are still some opportunities to generate greater funding for public services locally.

‘Some changes will require time to explore, plan and introduce but it is economically efficient and effective to shift the tax burden onto property and land owners and away from council taxpayers, making the tax system more progressive and more based on ability to pay.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Adult Health and Social Care

Leeds City Council
up to £185,237
Drive Change. Shape Lives. Lead Boldly. Leeds, West Yorkshire
Recuriter: Leeds City Council

SEND Caseworker

Nottingham City Council
£46,142 - £49,282
Are you passionate about making a difference to the lives of children and young people with Special Educational Needs and Disabilities (SEND)? Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Head of Children and Young People Services

Neath Port Talbot County Borough Council
£89,565 - £98,298
We are looking for an inspiring and experienced leader who is passionate about improving outcomes for children, young people and their families Neath Port Talbot (Castell-nedd Port Talbot)
Recuriter: Neath Port Talbot County Borough Council

Supported Accommodation Worker

Durham County Council
Grade 7, £31,015 - £34,811 per annum
Be the Person Who Helps a Young Person Believe in Their Future. Every young person deserves someone who believes in them. Someone who listens when l Durham
Recuriter: Durham County Council
Linkedin Banner