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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Highways Apprentice (Development Management)

Kirklees Metropolitan Council
£12.42 per hour
Start your career and help shape the future of travel in Kirklees Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Social Worker - Assessment & Intervention Team, North Essex

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Assessment & Intervention Team, North EssexPermanent, Part Time£36,124 to £51,834 per annum Location
Recuriter: Essex County Council

Senior Engineer - (Highway Interpretation and Digitisation Project)

Kirklees Metropolitan Council
£29,540 - £37,280
Help shape the future of highway records in Kirklees Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Assistant Project Sponsor

Essex County Council
£34607.0000 - £40714.0000 per annum
Assistant Project SponsorPermanent, Full Time£34,607 to £40,714 Per Annum Location
Recuriter: Essex County Council
Linkedin Banner