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

Supervisor (Relief) - Christian Head Residential Care Home WMF1081e

Westmorland and Furness Council
£35,745 - £36,648
We are looking for kind, compassionate candidates interested in the opportunity to make a real difference Cumbria
Recuriter: Westmorland and Furness Council

Governance Support Officer

City of York Council
Grade 6 Level 1- 4 (£26,224 to £28,725 per annum) reduced pro rata
Are you super-organised and looking for a part-time, flexible role, working term time only with a mix of office and home working? York, North Yorkshire
Recuriter: City of York Council

Customer Service Representatives

City of York Council
Grade 5 Level 1 - 4 (24,629 - £25,779 pro rata per annum)
Are you an amazing retail, tourism or contact centre worker with excellent customer service skills. York, North Yorkshire
Recuriter: City of York Council

Care Enabler

Rotherham Metropolitan Borough Council
£23,893 pro rata (Pay award pending)
Do you want to help people maintain and increase their independence also have control over their lives? Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Programme Manager WMF1082e

Westmorland and Furness Council
£62,273 to £65,017
This is an exciting opportunity to join the Westmorland and Furness Programme Management Office Cumbria / Various
Recuriter: Westmorland and Furness Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.