William Eichler 14 May 2024

Scottish councils face £585m funding gap

Scottish councils face £585m funding gap  image
Image: Vitalii Stock / Shutterstock.com.

Council leaders across Scotland have called on Holyrood to find a ‘meaningful solution’ to the half a billion pound shortfall faced by local government north of the border.

The Accounts Commission today reported that Scottish councils faced a collective gap of up to £585m between the money they need to deliver services and the money available. The watchdog also estimated this gap would widen to £780m by 2026/27.

The Scottish Government has increased revenue funding to councils by 6% – or £13.25bn in total – and made £147m available to mitigate the impacts of a council tax freeze.

However, the commission warned this ‘masks significant underlying financial challenges and strain’ because the extra funding has been ring-fenced for policies and to cover the costs of pay increases.

A third of councils also said the Government funding does not fully-fund the council tax freeze.

Cabinet Secretary for Finance and Local Government, Shona Robison, said that the UK Government had failed to deliver the funding Scotland needs for public services.

‘When more support is desperately needed for public services and infrastructure, Scotland’s Block Grant from the UK Government is still less in real terms in 2024-25 than in 2022-23 by around £0.4bn,’ she said.

COSLA’s Resources spokesperson Cllr Katie Hagmann commented: ‘The reality right now for councils has never been more challenging. The effect of years of real-terms cuts to core budgets have been compounded by additional policy commitments and less flexibility in how we allocate increasingly directed budgets. This makes the ability to take local decisions on most of our budget, almost impossible.’

Check out: Selling the family silver.

SIGN UP
For your free daily news bulletin
Highways jobs

Family Worker (Link Role)

Essex County Council
£31931.00 - £36423.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Permanent, Full Time£31,931 to £36,423 per annumLocation
Recuriter: Essex County Council

Assistant Manager

Wakefield Council
£42,839 to £46,142, Grade 10.
We have fantastic opportunity available for a Residential Children’s Home Assistant Manager. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Council Tax Officers - North Lincolnshire Council

North East Lincolnshire Council
Grade 6 - £16,765 to £18,501 per year
You will be working as part of the Local Taxation and Benefits Shared Service North East Lincolnshire
Recuriter: North East Lincolnshire Council

Electoral Services Officer

North East Lincolnshire Council
NJC15 - £30,024
Are you ready to play a key role in shaping democracy while thriving in a fast-paced, data-driven environment? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Family Support Worker

North East Lincolnshire Council
NJC 19 - £32,061
Are you committed to improving outcomes for our Young People? North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner