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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Regeneration

Redbridge London Borough Council
£96,861 - £100,671
Right now, we’re in the midst of ambitious regeneration plans that will transform our borough for generations to come Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leisure & Culture

Redbridge London Borough Council
£96,861 - £100,671
Our borough’s Leisure and Culture provision is integral to making Redbridge a great place to live Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leader’s Office

Redbridge London Borough Council
£59,739 - £63,159
This role will see you working at the very centre of the Council’s work Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Operational Services

South Derbyshire District Council
£73,051 to £75,342
Ready to shape the future of a thriving district? Derbyshire
Recuriter: South Derbyshire District Council

Director of Family Help and Safeguarding

Reading Borough Council
£105,836 - £121,235
Lead Transformational and Improvement Change for Children’s Services Reading, Berkshire
Recuriter: Reading Borough Council
Linkedin Banner