Meeting of the Parliament 06 March 2018
I would like to make some progress.
Although we acknowledge that it is an extremely disappointing and difficult settlement, we shall vote for the Scottish Government’s motion to ensure that our local councils receive their funding.
It is clear, from the carefully choreographed public relations stunt that we saw in the negotiations between the SNP and the Greens earlier this year, that the draft budget’s proposal for a real-terms cut to local government budgets has been reversed, but that has gone by no means far enough. In fact, it was very much the case that the Scottish Government could give only sufficient financial provision to ensure that councils receive their funding.
Audit Scotland’s financial overview of local government highlighted that local government faces real challenges as we move forward. Rather worryingly, the report revealed that Scottish councils are, on average, spending 10 per cent of their revenue budgets in servicing borrowing. It also suggested that some councils could run out of funds completely in the next two or three years. Such problems are very much the fault of the Scottish Government, which has made a 7.6 per cent real-terms cut in local authority funding since 2010-11. Moreover, the pressure that the SNP has put on local authority budgets has forced many councils across Scotland to use fees and charges to fund vital services, which is totally unacceptable.
It is not only the level of funding itself that the Scottish Government has got badly wrong this year. Its incompetence was in plain sight when it emerged that provisional local government settlements, including ring-fenced funds for criminal justice, had been erroneously allocated in two areas of the budget.
Local authorities are also facing significant shortfalls. Double counting means that they are facing bigger challenges. Councils had planned their budgets on the basis of the figures that were set by the Scottish Government’s draft budget, and these problems only created even more difficulties for them.