COUNCILS body Cosla says “really difficult times” for local authorities will continue despite Scottish Government Budget pledges.
The umbrella body represents all 32 councils and said plans unveiled by Finance Secretary Derek Mackay yesterday represent a £153 million cut for its members.
The 2018-19 financial plan includes an increase in “core funding” of £94m, with the option to raise £77m more by setting council tax rates at the maximum three per cent.
Mackay, the former leader of Renfrewshire Council, said that would “secure a real terms increase in local government funding”.
However, Cosla said its members face a £60m cut to local capital funding and “really difficult times” lie ahead. Cosla resources spokesperson and Conservative councillor Gail Macgregor said there is “no doubt” essential services will be affected, with the end of the public sector pay freeze potentially adding to this.
Mackay announced a pay rise of three per cent for workers earning less than £30,000, with a two per cent increase for higher earners. Those on £80,000 or more will have their boost limited to £1600.
Macgregor, of Dumfries and Galloway Council, highlighted this as “a particular issue” if it is not fully funded, adding: “Whilst councils have the ability to raise council tax in their local area that is a decision they will take based on local needs and circumstances and is subject to a three per cent cap which has been imposed on councils by the Scottish Government.
“The current spending review process makes it extremely difficult for councils to set medium and long term financial plans due to short term funding and annual settlements.”
Councillor David Ross of Fife, who leads the body’s Labour group, went further, branding the announcement “a slap in the face for local government”.
He said: “This will mean yet more cuts to local services and jobs and will hit some of the poorest in our communities who rely on council services the most.
“The cabinet secretary is pretending that extra cash for Scottish Government-initiated schemes is additional funding. It’s not. It’s simply the funding we have already been promised to pay for new projects like the early years programme and to continue paying the living wage for care workers.
“Cosla estimated that councils needed an additional £545m just to stand still, taking account of inflation and rising demand for services like social care. Today’s announcement is a slap in the face for local government as the Scottish Government has failed to invest in local jobs and services, and leaves councils facing an effective cut of around £700m.”
Mackay defended his local government package as “fair”, saying he had avoided a projected £300m cut and stating: “We have protected day-to-day local government spending, while increasing the capital budget. Local authorities will receive more than £10.5 billion through the local government finance settlement in 2018-19.
“We are using our tax varying powers to boost investment in public services, and if local authorities choose to use their powers to increase council tax, by up to 3 per cent, they will have an overall real terms increase in the funds at their disposal, to support local services.”
Larry Flanagan of EIS, the country’s largest teaching union, called the removal of the pay freeze “long overdue”, but said members are now looking ahead to the April 2018 pay settlement “with an expectation of a significant boost” in earnings.
Meanwhile, the FDA union, which represents senior civil servants, said the decision to set a lower limit for those on higher grades “penalises” its members.
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