Meeting of the Parliament (Hybrid) 24 February 2021
For every problem that is complex and difficult, there is a solution that is simple, easy and wrong. That is what the Conservatives have to offer today.
The topic is an important one, because the system of local government finance that we have in this country is fundamentally broken. Every year since the SNP lost its majority, the Greens have made the issue a priority. The impact of additional resources that we have made available to local government has changed the context of that historical underfunding to which Sarah Boyack’s amendment refers. Overwhelmingly, the damage was done in the previous session of Parliament. In every year since 2016, the Green impact has made a real difference, and has been welcomed repeatedly by COSLA.
The Greens were the first to propose a fiscal framework. Back in 2017, we published proposals on the framework and we eventually gained support to begin the task of developing it. However, that is one of many areas of work that have been delayed due to Covid.
The Conservative proposal today simply does not engage with reality. The reality is that a fiscal framework for local government cannot just be imposed; it needs to be carefully developed with local government. It needs to provide transparency, predictability, sustainability and autonomy for local government over its finances. The reality is that the simplistic idea of providing for a fixed percentage of the Scottish budget would utterly disregard the changing needs and priorities from year to year.
Annie Wells is flatly wrong to claim that her proposal mirrors the UK-Scotland fiscal framework. I do not believe for a moment that the Conservatives would support a UK-Scotland fiscal framework that was based on the idea of a fixed percentage of the total UK budget, and such a simplistic idea would be no more workable in a fiscal framework for local government. The reality is that, in order to work, it would need to give local government the fiscal autonomy that is normal in many other European countries.
The reality is also that Green efforts to deliver new fiscal powers to local government have met with consistent opposition from the Conservatives. Reform of local government finance can happen only if we work together to achieve political consensus across the political parties. We do not have the same starting points, but if we all just dig in our heels and defend our starting points, there will be no progress. Such progress is long overdue. The reality, I am sorry to say, is that the Conservatives are the only party in the Parliament that has consistently refused to engage with the opportunities for cross-party dialogue that could result in progress. With that track record, it is clear that their motion is not a serious effort to achieve change.
We will support both amendments today. The Government amendment deletes that simplistic model of a fixed percentage, while the Labour amendment recognises both the historical context and some of the priorities that need to be addressed for the future. We will vote for both amendments and for the amended motion.