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

Service Director

City Of Doncaster Council
to £108k
It’s all happening in Doncaster. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

STEPs Support Team Manager (CDC)

City Of Doncaster Council
Grade 8, £33,708 - £37,399 + 6% All Inclusive Allowance
We are passionate about our Place and we firmly believe we have one of the strongest propositions in the country. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

HEART Technical Business Support Officer x 2 posts (CDC)

City Of Doncaster Council
Grade 6, £25,981 - £26,815
The City of Doncaster Council is a confident, ambitious organisation Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

SEN Learning Support Assistant

City Of Doncaster Council
Grade 6 Scale Point
£17,988 - £19,478
Recuriter: City Of Doncaster Council

Corporate Director of Housing

Lambeth Council
Circa £180,000
We’re looking for a strategic housing leader with a strong record of improvement, partnership working and driving change at scale. Lambeth, London (Greater)
Recuriter: Lambeth Council
Linkedin Banner