Hansard

I am delighted to close for the Scottish Conservatives in this afternoon’s debate on fair funding for councils.

As someone who spent nearly two decades in local government, I am acutely aware of the challenges that councils face, particularly when it comes to funding. Scotland’s councils have been at the forefront of the response to the coronavirus pandemic, and many have continued to deliver their vital front-line services despite the restrictions that they have had to cope with and adapt to. I commend and congratulate all staff who have stepped up to the plate and taken on those roles. In addition, many staff have been redeployed and have taken on specific roles to ensure that individuals who are shielding or self-isolating have been supported.

However, that has all come at a cost. While demand for many services has increased, revenue streams have dried up: council tax collection rates have gone down; parking charges have been scrapped; anticipated rises in fees have had to be put on hold; and income from fees in planning and licensing has fallen sharply. As a result, councils across Scotland face a combined shortfall of £511 million as they go into 2021-22. One would think that the Scottish Government might take note of that, but even after the allocation of additional top-up funding, the local government budget is nearly £400 million less. As we have heard, the Scottish Government’s budget has increased by more than 9 per cent, but the budget of Scottish councils has increased by only 0.9 per cent. [Interruption.] No—time is tight, and I want to continue.

There is simply no excuse for the SNP’s chronic underfunding of local government, but it should come as no surprise to any of us, given the SNP’s track record when it comes to dealing with local government funding. Last year, it failed to support councils as quickly as the UK Government did. Councils waited weeks to receive extra funding that was due to them. The SNP has severely underfunded councils for years. Between 2007 and 2020, the SNP Government’s spending on local government fell from 35.9 per cent to 31.1 per cent of the budget.

At the same time as their funding has fallen, councils have taken on extra responsibilities and the number of ring-fenced budgets has increased. That means that councils’ discretionary budgets have fallen even more dramatically. The SNP might talk about bringing government closer to the people, but the fact is that power is being hoarded here in this Parliament in Edinburgh. Discretionary funding covers activities such as road maintenance, garden waste collection and instrumental tuition for pupils and young people, which are vital services. The SNP has failed councils for so long, and it is about time that it gave them fair funding to ensure that such activities can take place.

Our proposal to the Scottish Parliament is a very simple one. [Interruption.] I will continue. The budget from the UK Government has increased while the grants to local councils have stayed the same or have gone down. We want local government to be entitled to a fixed proportion of the Scottish budget each year. The creation of a Barnett-type formula for local government would ensure that there would not be uncertainty from year to year. As well as allowing us to make councils much more effective and efficient, it would give them the opportunity to support others, and would give them the space and the resources to invest in the future. That is what we want to see—investment in the future.

My colleague Annie Wells talked about the crisis in local government. COSLA has highlighted its concerns about the financial shortfall. Councils are cash strapped.

In her contribution, Sarah Boyack acknowledged the good work that councils have done with one hand tied behind their back. We talk about fair funding and the fiscal framework, but the reality is that investment has gone down and people are having to deal with issues. We heard warm words from the cabinet secretary about how councils are tackling things, but what she said is not the case. Councils have had to deal with problems year on year.

Edward Mountain talked about the trust that councils need so that they can support roads, schools and social care.

In conclusion, the SNP has treated local government with complete contempt for the past 14 years. It has raided the budgets of local government to pay for its vanity projects, which have undermined local democracy. As a party of localism, we, the Scottish Conservatives, have a clear vision. Change is needed to ensure fair funding for our councils. Our proposals, enshrined in the Barnett formula, would ensure that change happens and that we give strong, clear and sensible opportunities for local government to develop.

I am very happy to commend the motion to the Parliament this afternoon, and I encourage members to support it.