COSLA, the body that represents Scotland’s Local Authorities, has described the funding allocated to council’s from the Scottish Government as a ‘major blow’ and that it has ‘put councils at financial risk’.

In the Draft Scottish Budget for the year ahead £13.9 billion is to be shared amongst LAs.. This includes £6 million to support the expansion of free school meals, £242 million for teacher pay rises and more than £266 million for local government pay deals.

£144 million has also been set aside to freeze Council Tax rates at their current levels for those LAs who wish to do that.

COSLA’s President Councillor Shona Morrison said:  

“COSLA’s initial analysis, shows a real terms cut to our revenue and capital spending power which will leave Council services at breaking point, with some having to stop altogether.  The Budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing Libraries, leisure centres and all the things that improve our lives.

“COSLA’s initial analysis of the Budget is that the Council Tax freeze is not fully funded. Leaders from across Scotland agreed today that decisions on Council Tax can only be made by each full Council, and it is for each individual Council to determine their own level of Council Tax.  With any sort of shortfall in core funding, the £144m revenue offered for the freeze is immediately worth less.”

Orkney Islands Council has launched a survey to ask islanders how they want the Islands money allocated locally. Click this link to access survey OIC has said that there will be a £27.1million funding gap.

COSLA Vice President and OIC councillor Steven Heddle said:  

“Despite the Verity House Agreement rhetoric about working together on shared priorities it is the same outcome at Budget time for Local Government in reality.  The Scottish Government is claiming to protect public services, but are not protecting the essential public services provided by councils– Scotland’s councils are key, they deliver your homecare, schools, road maintenance, street lighting, leisure and waste services and have been locked out again.

“We needed increased funding to cope with inflation, but have been given less instead. The cut to Revenue funding we have been given is a devastating blow and the cut to our Capital funding means that we will be unable to meet our targets in terms of a move towards Net Zero and mitigating climate change targets.”

Deputy First Minister and Cabinet Secretary for Finance in the Scottish Government Shona Robison described the funding for local councils as record breaking and that the Government faced ‘a profoundly challenging financial situation’ following on from the Budget produced by the UK Government.

Shona Robison continued:

“We recognise the crucial role councils play in their communities, which is why we have increased their overall share of the Scottish Budget.

“We have made no secret of the tough choices that have been required to balance our Budget, after an Autumn Statement that failed to provide the funding Scotland needs for its public services. While I know councils had sought more funding, the settlement confirmed today represents a fair and sustainable offer.

“We have chosen to invest in our people and public services. This is a Budget that reflects our shared values as a nation and speaks to the kind of Scotland that we want to be with a record settlement for local councils at its heart.”

COSLA has produced a paper described as a ‘Budget Reality on the impact of the Draft Scottish Budget on councils and the services they provide.

COSLA’s Resources Spokesperson Councillor Katie Hagmann said:  

“The Scottish Government has disappointingly failed to recognise that investment in Councils is investment in cities, towns and villages across Scotland. As it stands, this is not a good Budget for our communities or the people who deliver our essential front-line services.  

“This is a Budget which will mean job losses – real jobs that support families, and deliver vital services that make a positive difference to people’s lives. Sadly, the budget as it stands, leaves nothing for meaningful pay rises in 24/25 so we would call on the Scottish Government to look again, so that our workforce can get the pay rise they deserve next year.”

Scottish Government Figures on Local Authority Funding:

	2023-24	2024-25	Increase	Increase
Local Authority	£m	£m	£m	%
Aberdeen City	432.1	454.2	22.0	5.1
Aberdeenshire	534.8	572.9	38.1	7.1
Angus	253.0	267.1	14.1	5.6
Argyll & Bute	230.9	242.0	11.1	4.8
Clackmannanshire	117.7	124.6	6.9	5.8
Dumfries & Galloway	351.5	370.4	18.9	5.4
Dundee City	357.1	377.2	20.1	5.6
East Ayrshire	288.4	303.1	14.7	5.1
East Dunbartonshire	230.7	252.0	21.3	9.2
East Lothian	219.0	237.3	18.2	8.3
East Renfrewshire	220.6	239.7	19.1	8.7
Edinburgh, City of	940.2	988.6	48.5	5.2
Eilean Siar	108.3	111.4	3.1	2.9
Falkirk	349.0	366.5	17.5	5.0
Fife	813.4	862.0	48.6	6.0
Glasgow City	1,518.7	1,591.0	72.3	4.8
Highland	555.4	582.1	26.7	4.8
Inverclyde	199.2	208.6	9.4	4.7
Midlothian	203.2	218.9	15.7	7.7
Moray	202.9	214.2	11.3	5.6
North Ayrshire	335.0	353.1	18.1	5.4
North Lanarkshire	768.7	813.4	44.7	5.8
Orkney	89.1	95.6	6.5	7.3
Perth & Kinross	317.3	337.7	20.5	6.5
Renfrewshire	389.8	416.5	26.7	6.8
Scottish Borders	257.8	272.5	14.8	5.7
Shetland	102.8	111.9	9.1	8.9
South Ayrshire	253.5	269.7	16.2	6.4
South Lanarkshire	696.8	742.7	45.9	6.6
Stirling	208.2	218.8	10.6	5.1
West Dunbartonshire	227.0	238.6	11.6	5.1
West Lothian	399.4	424.1	24.7	6.2
Undistributed	225.5	365.3	139.9
Redress Top Slice	6.0	0.0	-6.0
Valuation Committee Top Slice	0.0	0.6	0.6
National Dog Database Top Slice	0.0	0.1	0.1
Climate Intelligence Service Top Slice	0.0	0.9	0.9
Scotland	12,402.5	13,245.1	842.6	6.8

Final allocations will be published following approval by the Scottish Parliament, expected in February.

Fiona Grahame