Chamber
Meeting of the Parliament 27 February 2025
27 Feb 2025 · S6 · Meeting of the Parliament
Item of business
Local Government Finance (Scotland) Order 2025 [Draft]
I think that it was 1991, but yes—absolutely. The system has been exacerbated by that issue; there is no doubt about that.
I hope that the minister takes that into account and seeks to change the system. I have seen the effect in Aberdeen, Aberdeenshire and in Edinburgh, where local government has struggled to even keep up with other local authorities.
In saying all that, we will support the order today because we managed to negotiate a budget that secured some significant investment into local authorities, including social care support through the national health service in Orkney and Shetland and employer national insurance compensation, which will help. We also need to get money to local authorities because they need it. Even if it is not sufficient, they need it. We will support the order today, but it is a qualified support. I hope that the minister takes into account the long-term funding issues and the disparity between some local authorities and others.
15:23In the same item of business
The Deputy Presiding Officer (Liam McArthur)
LD
The next item of business is a debate on motion S6M-16489, in the name of Ivan McKee, on the Local Government Finance (Scotland) Order 2025. I invite members...
The Minister for Public Finance (Ivan McKee)
SNP
The motion on the Local Government Finance (Scotland) Order 2025 seeks Parliament’s approval for the guaranteed allocations of revenue funding to individual ...
Willie Rennie (North East Fife) (LD)
LD
How is the 85 per cent floor calculated now? Does it include council tax? Does it exclude the biggest beneficiaries of the revenue system? Changing the formu...
Ivan McKee
SNP
I recognise the member’s specific local interest in how that calculation is done. Of course, it is COSLA that does the work to assess how to distribute that ...
Willie Rennie
LD
Will you take a further intervention?
Ivan McKee
SNP
Sure.
The Deputy Presiding Officer
LD
Through the chair, Mr Rennie.
Willie Rennie
LD
The 85 per cent floor is specified in the Scottish public finance manual, which is produced by the Scottish Government, so it is Government policy.
Ivan McKee
SNP
That work is done with COSLA. However, if the member wants to address specifics, I am happy to pick those up separately with him. There remains a further £1...
Alexander Stewart (Mid Scotland and Fife) (Con)
Con
I am pleased to speak on behalf of the Scottish Conservatives in the debate on this year’s local government finance order. The motion before us today is nece...
Ross Greer (West Scotland) (Green)
Green
Does the member agree that it is profoundly ridiculous to have a council tax system whereby most people are paying the wrong rate and that, regardless of wha...
Alexander Stewart
Con
I agree with the member that revaluation is the first step in that direction. I hope that that can be looked at. I referred to the gaps in funding. The Scot...
Mark Griffin (Central Scotland) (Lab)
Lab
The Local Government Finance (Scotland) Order 2025 is a step in the right direction, but we should look more closely at the claim that it represents a succes...
Ivan McKee
SNP
Will the member take an intervention?
Mark Griffin
Lab
Yes, I will.
Ivan McKee
SNP
The member said that there is £5 billion for this financial year. Will he clarify, for the record, that it absolutely is not, but that it is spread over two ...
Mark Griffin
Lab
The UK Government has provided the Scottish Government with more than £5 billion extra. Only this SNP Government could complain about an extra £5 billion and...
Ross Greer
Green
Does the member agree with me and with Alexander Stewart that it is farcical that most people are paying the wrong rate of council tax and that, whatever we ...
Mark Griffin
Lab
It is absolutely ridiculous that we have a valuation system that was set up when I was in primary 1. I am not sure whether Ross Greer had even been born when...
Ross Greer (West Scotland) (Green)
Green
The Scottish Greens set out two red lines at the start of the budget process. One was about climate and nature spend and the other was a real-terms increase ...
Willie Rennie (North East Fife) (LD)
LD
I love Ross Greer’s eternal optimism about the reform of local government finance. He and I have sat through numerous working groups and consultations where ...
Liz Smith (Mid Scotland and Fife) (Con)
Con
Does Mr Rennie recognise that the problem that he set out regarding Aberdeen, Edinburgh and Aberdeenshire has been exacerbated by the fact that we have not h...
Willie Rennie
LD
I think that it was 1991, but yes—absolutely. The system has been exacerbated by that issue; there is no doubt about that. I hope that the minister takes t...
Ivan McKee
SNP
The 2025 local government finance order that is before us today seeks parliamentary approval for the guaranteed payment of £13.9 billion in revenue support t...
The Deputy Presiding Officer
LD
That concludes that item of business. There will be a brief pause before we move on to the next item of business, to allow front-bench members to change places.