Scottish council leaders have warned that local authorities may go bankrupt if funding from the Scottish government is not improved. In a briefing paper ahead of the Scottish budget announcement on 19 December, the Convention of Scottish Local Authorities (Cosla) argued that councils would need nearly £14.4bn ($19.2bn) to “stand still”. Cosla’s figures do not include an inflation-based increase to councils’ budgets of 3.8% or compensation for a council tax freeze. The Scottish government has argued that it has given councils a real-terms increase of £376m, or 3%, this year.
Both Glasgow and North Lanarkshire councils have recently issued Section 114 notices, which constrain spending to statutory services. Cosla stated: “There is a risk this becomes the reality for Scottish councils if the funding by Scottish government does not match growing cost pressures.” However, a spokesperson for the Scottish government said it was facing “the most challenging budget settlement since devolution” and that it had increased resources for local government for the coming year by over £793m, a real-terms increase of 3%. Final decisions on funding would be made after negotiations with Cosla.
Katie Hagmann, Cosla’s resources spokeswoman, warned that “tough choices” could mean that essential services such as education and social work “will cease”. She added that cutting frontline staff “isn’t the answer” and that councils required funding in order to provide “sustainable public services”. First Minister Humza Yousaf announced the council tax freeze in October, but no details have been revealed on how much money councils can expect to receive to compensate for it
Read the full article from The BBC here: Read More