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 Reward Consultant

Essex County Council
£60469.0000 - £71140.0000 per annum
Senior Reward ConsultantPermanent, Full Time£60,469.00 to £71,140.00 per annum Location
Recuriter: Essex County Council

Director of Resources

Dartmoor National Park Authority
£71,288 - £77,905 per annum
Dartmoor National Park Authority is the body that oversees the vibrant, living, working landscape and communities of Dartmoor National Park. Devon
Recuriter: Dartmoor National Park Authority

Business Relationship Manager

Essex County Council
£62461 - £73483 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK. This vacancy England, Essex, Chelmsford
Recuriter: Essex County Council

Social Worker - Disabled Children's Service

North Yorkshire Council
£38,220 - £42,839 per annum
As a Social Worker within the Disabled Children’s Service, you will play a vital role in a supportive and experienced specialist team Selby, North Yorkshire
Recuriter: North Yorkshire Council

Children and Families Worker – Multi Agency Screening Team (MAST)

North Yorkshire Council
£32,578 - £35,570
You will work directly with children, young people, and their families. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner