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

Digital Support Analyst

Essex County Council
£30685.00 - £36099.00 per annum + + 26 Days Leave & Local Gov Pension
Digital Support AnalystPermanent, Full Time£30,685 to £36,099 Per AnnumLocation
Recuriter: Essex County Council

Commissioning Officer - Children's Service and Education Contracts

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613
We have an exciting opportunity available for a Commissioning Officer Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Part Time Vocational Trainer - Health and Social Care

Essex County Council
£38466.00 - £45254.00 per annum + Pro Rata
Part Time Vocational Trainer - Health and Social Care - South EssexPermanent, Part Time£29,468 to £34,668 Per Annum (full time equivalent) Location
Recuriter: Essex County Council

Permits Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,225 - £42,888 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Assistant Director of Housing

City of York Council
£86,537 – £95,898
The city is entering an exciting period of transformation. York, North Yorkshire
Recuriter: City of York Council
Linkedin Banner