Local government in Scotland is set to benefit from a £14bn boost but council tax will be frozen despite criticisms of the plan by local authority leaders.
Deputy First Minister and Finance Secretary Shona Robison announced what she described as ‘record funding’ for councils as she tries to plug a £1.5bn funding shortfall in the Scottish budget.
She also said that £144m will be available to enable local authorities to freeze council tax rates at their current levels. This represents the equivalent of a 5% council tax increase next year.
A spokesperson for Unison told the BBC: ‘This is really bad news for local services. The council tax freeze is fiscally feckless, doesn't help the poorest – and so much for the Verity House agreement [the agreement between councils and the Scottish government this autumn].’
The budget also included £2bn for health and social care integration and £200m to raise care worker pay to £12 per hour from April.
A spokesperson for the Convention of Scottish Local Authorities (COSLA) said they will consider the implications of the budget at a special meeting on Thursday. However, COSLA branded the idea of a council tax freeze as ‘regressive’ in October when it was proposed at the SNP conference.
Ms Robison commented: ‘This Budget is set in turbulent circumstances. At the global level the impacts of inflation, the war in Ukraine, and the after-effects of the pandemic continue to create instability. In the UK the combined effects of Brexit and disastrous Westminster policies mean that we are uniquely vulnerable to these international shocks.
‘We cannot mitigate every cut made by the UK Government. But through the choices we have made, we have been true to our values and rigorous in prioritising our investment where it will have the most impact.’
