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

School Crossing Patrol Officer - Thundersley Primary School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Thundersley Primary SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

School Crossing Officer - St Francis' Primary

Essex County Council
Up to £13.00 per hour
School Crossing Officer - St Francis' PrimaryPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

School Crossing Patrol Officer - Lawford Mead Primary

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Lawford Mead PrimaryPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

School Crossing Patrol Officer - Riverside Primary School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Riverside Primary SchoolPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

Senior Lawyer (Litigation)

West Northamptonshire Council
£49587 - £52860
Would you like to join a local authority where you can progress your legal career and be supported to excel professionally? If so, join the Legal Team at West Northants Council, one of the newest and the fourth biggest Unitary Council in England. You wi Northampton
Recuriter: West Northamptonshire Council
Linkedin Banner