Martin Ford 10 March 2022

Uncertain future for Scottish councils' finances

Uncertain future for Scottish councils finances image
Image: Becky Stares / Shutterstock.com

Councils in Scotland face an uncertain future, according to a financial watchdog.

A report by the Accounts Commission found that while local authorities have bolstered their reserves over the past year overall funding has fallen in the longer-term as the sector prepares to address challenges.

Accounts Commission chair, William Moyes, said: ‘Councils face serious challenges, driven by financial constraints, increasing demands on service and resource.’

The commission’s overview of local government finances in Scotland during 2020-21 found total funding and income increased by 10% to reach £1.8bn.

However, excluding Scottish Government funding to deal with the COVID-19 pandemic, councils have had their funding reduced in real terms by 4.2% since 2013-14.

The Accounts Commission highlighted issues around ring-fencing restricting local authorities’ ability to respond to emerging pressures.

The report highlighted challenges on the horizon beyond COVID-19, including pre-existing cost and demand pressures, delivering net-zero ambitions, improving economic growth, and tackling child poverty.

Mr Moyes said uncertainty around funding needed to be resolved to allow councils to revise long-term financial plans.

He added: ‘While councils must address longer-term financial planning, having in place funding certainty, beyond a one-year settlement from the Scottish Government, remains a critical issue.’

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