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

Trainee Pensions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,225 - £34,389
Trainee Pensions Officer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Street Lighting Project Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
Are you looking for an electrical street lighting role within an innovative and exciting Electrical Engineering team? Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Team Leader - Electrical Engineering/Street Lighting

North Yorkshire Council
£51,356 - £55,539 per annum
Are you an experienced Street Lighting Engineer who would be interested in joining an award-winning team Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Roaming Ranger

Essex County Council
£25959.0000 - £29820.0000 per annum
Roaming RangerPermanent, Full Time£25,959 to £29,820 per annumLocation
Recuriter: Essex County Council

Partnership Director - Central Pool

West Midlands Pension Fund
£83,576 - £95,386
Shape the future of one of the UK's largest public sector investment partnerships Wolverhampton, West Midlands
Recuriter: West Midlands Pension Fund
Linkedin Banner