Chamber
Plenary, 08 Dec 2004
08 Dec 2004 · S2 · Plenary
Item of business
Local Government Finance Settlement
I thank Mr Sheridan for those questions.
We have instituted an independent review of local government finance and the review group will provide the Scottish Executive with the outcome of its work as soon as it has finished that work. Clearly, that is when we will take forward any issues that arise from the review. That is as much as we can do. If anyone in Scotland has a view about the way in which we raise local finance, I have no doubt that they will feed their view into the independent review of local government finance in the hope that it will hold sway when the final recommendations are made.
I recognise that Glasgow is a powerful driver of the Scottish economy. Undoubtedly, it is a great Scottish city—indeed, I have recognised that fact publicly on other platforms, and I have said that I have a great admiration for the work that the city does. In my view, the city is beginning to flourish: it is showing tremendous imagination and a tremendous willingness to work with its partner organisations. The results of that work are starting to show and to benefit not only the city's environment and facilities but the economic opportunities that are available to its citizens.
As I did previously, I want to stress that Glasgow has the highest aggregate external finance allocation per head of population in all of Scotland. That says enough about the way in which the Executive recognises the city. On top of that, a series of other funding streams are making their way towards the city of Glasgow—and rightly so.
I confirm that the announcement includes an assumption for efficiency savings. That is right and proper as we pursue the goal of a more efficient regime not only in local government but in the public sector right across Scotland. We cannot escape the fact that local government consumes one third of the Scottish budget. It is therefore fair that it carries a considerable burden in the quest to achieve efficiency savings. From the past performance of local government with regard to best value, we can see that it is well able to work with us in achieving those savings. I have great confidence in local government and a great respect and regard for it, as does the Executive. As the years pass, we will demonstrate that in our relationship with local government. We will look to local authorities to assist us in that work by providing as much additional resource as possible. We are asking local government to achieve savings for the sole purpose of reinvesting the resources in front-line services.
I emphatically confirm that I have no intention whatsoever of reversing the current arrangements for non-domestic rates. I do not agree with Mr Sheridan that it would necessarily benefit local government if it were to set the rate. We have no intention of returning control of non-domestic rates to local authorities.
We have instituted an independent review of local government finance and the review group will provide the Scottish Executive with the outcome of its work as soon as it has finished that work. Clearly, that is when we will take forward any issues that arise from the review. That is as much as we can do. If anyone in Scotland has a view about the way in which we raise local finance, I have no doubt that they will feed their view into the independent review of local government finance in the hope that it will hold sway when the final recommendations are made.
I recognise that Glasgow is a powerful driver of the Scottish economy. Undoubtedly, it is a great Scottish city—indeed, I have recognised that fact publicly on other platforms, and I have said that I have a great admiration for the work that the city does. In my view, the city is beginning to flourish: it is showing tremendous imagination and a tremendous willingness to work with its partner organisations. The results of that work are starting to show and to benefit not only the city's environment and facilities but the economic opportunities that are available to its citizens.
As I did previously, I want to stress that Glasgow has the highest aggregate external finance allocation per head of population in all of Scotland. That says enough about the way in which the Executive recognises the city. On top of that, a series of other funding streams are making their way towards the city of Glasgow—and rightly so.
I confirm that the announcement includes an assumption for efficiency savings. That is right and proper as we pursue the goal of a more efficient regime not only in local government but in the public sector right across Scotland. We cannot escape the fact that local government consumes one third of the Scottish budget. It is therefore fair that it carries a considerable burden in the quest to achieve efficiency savings. From the past performance of local government with regard to best value, we can see that it is well able to work with us in achieving those savings. I have great confidence in local government and a great respect and regard for it, as does the Executive. As the years pass, we will demonstrate that in our relationship with local government. We will look to local authorities to assist us in that work by providing as much additional resource as possible. We are asking local government to achieve savings for the sole purpose of reinvesting the resources in front-line services.
I emphatically confirm that I have no intention whatsoever of reversing the current arrangements for non-domestic rates. I do not agree with Mr Sheridan that it would necessarily benefit local government if it were to set the rate. We have no intention of returning control of non-domestic rates to local authorities.
In the same item of business
The Deputy Presiding Officer (Murray Tosh):
Con
The next item is a ministerial statement on the local government finance settlement and non-domestic rate poundage. As is normal in these circumstances, the ...
The Minister for Finance and Public Service Reform (Mr Tom McCabe):
Lab
I offer an apology to the spokespersons of the Opposition parties for getting copies of the statement to them rather late. The Executive has experienced some...
The Deputy Presiding Officer:
Con
The minister will now take questions on the issues raised in his statement. I will allow around 40 minutes for questions.
Alasdair Morgan (South of Scotland) (SNP):
SNP
I thank the minister for what he said about the lateness of the statement. Clearly, the road to efficiency through the use of information technology systems ...
Mr McCabe:
Lab
I have always known that SNP members are somewhat inward looking, but I was not aware until today that they have a problem with IT developments in our societ...
Mr Brian Monteith (Mid Scotland and Fife) (Con):
Con
I, too, am obliged to the minister for the early copy of his statement. I trust that the technical problems did not delay his press briefing at lunch time, b...
Mr McCabe:
Lab
First, I refute the spurious allegation about a press briefing. I am sure that Mr Monteith will take the opportunity to withdraw that remark. There was no pr...
Mr Monteith:
Con
If the press briefing that I was led to believe was taking place at noon was cancelled, I apologise to the chamber for suggesting that it might have taken pl...
Mr McCabe:
Lab
I am obliged that Mr Monteith recognises that he did not check his facts before he came to the chamber. That is reflected in his remarks about the council ta...
Iain Smith (North East Fife) (LD):
LD
I welcome the minister's statement today. It reinforces the good news about what the Liberal Democrat-Labour Executive has done for local government over the...
Mary Scanlon (Highlands and Islands) (Con):
Con
Is this a question on the ministerial statement?
Iain Smith:
LD
It is. It is about the council tax increase.Does the minister also agree that it is strange that neither the SNP's nor the Conservatives' leading spokesmen h...
Mr McCabe:
Lab
I agree completely with my coalition colleague. That is a sound contribution. He correctly outlines the terrible things that happened during the Conservative...
The Deputy Presiding Officer:
Con
Order.
Mr McCabe:
Lab
Although the SNP claims to defend services, last week at First Minister's question time it demanded reductions in council tax levels. Mr Morgan's question sh...
The Deputy Presiding Officer:
Con
I encourage remaining members to put their questions on the content of the minister's statement and not to encourage him to repeat his earlier answers.
Dr Elaine Murray (Dumfries) (Lab):
Lab
I welcome much of what was in the statement, especially the consultation on the improvements in the small business rate relief scheme, the dropping of the 1k...
Mr McCabe:
Lab
I welcome the question. I ask Dumfries and Galloway Council to consider any intended increases against the backdrop of the allocations that it receives. It g...
Mark Ballard (Lothians) (Green):
Green
I, too, thank the minister for allowing us to have early sight of his statement.In his statement, the minister mentioned the potential for revaluation to res...
Mr McCabe:
Lab
I mentioned the transitional scheme that people will have the opportunity to take advantage of, which seeks to absorb shocks and to level out the impact of i...
Tommy Sheridan (Glasgow) (SSP):
SSP
I have four short questions for the minister. First, does he agree that the council tax remains an inherently unfair tax and is an unfair way in which to rai...
Mr McCabe:
Lab
I thank Mr Sheridan for those questions. We have instituted an independent review of local government finance and the review group will provide the Scottish ...
Bristow Muldoon (Livingston) (Lab):
Lab
I thank the minister for the statement and, in particular, for the Executive's continued strong support for local government funding over the next three-year...
Mr McCabe:
Lab
I confirm that we have fully funded the teachers' pay settlement and that we have made an allowance for pay in several other sectors and bodies that come und...
Stewart Stevenson (Banff and Buchan) (SNP):
SNP
The minister referred to efficiency savings and the need for councils to improve their council tax collection rates. Will he confirm that improved collection...
Mr McCabe:
Lab
I confirm that as a part of an overall efficient government drive, we would like increased council tax collection rates, but that is not necessarily containe...
Des McNulty (Clydebank and Milngavie) (Lab):
Lab
I welcome much that is in the statement, but the year 3 settlement will be extremely difficult for local government. Through the Finance Committee, I want to...
Mr McCabe:
Lab
I made it clear in the statement that through our dialogue with local government, we received its representations on its concerns about the third year of the...
Bruce Crawford (Mid Scotland and Fife) (SNP):
SNP
The minister will be aware that some councils predict that their fuel costs will rise by as much as 27 per cent as a result of electricity and gas supply cos...
Mr McCabe:
Lab
I am not sure whether Mr Crawford is advocating that we should get rid of councillors. We have always said that we will try to maintain the number of council...