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VOICES OF SCOTLAND Utopia and myopia

GORDON MUNRO asks what next for Scottish council budgets

THE left in Scotland has been a useful prophylactic for the SNP as it was used time and again to hurl petty abuse, chant slogans and march for indy while what Unison calls the “silent slaughter” in Scottish councils has taken place. 

The Fraser of Allander Institute put the job losses at 30,000 and for the period 2013-14 to 2017-18 the funding cuts at £750 million, which equates to a real-terms cut of 7 per cent. 

The Convention of Scottish Local Authorities (Cosla) tried to make this an election issue by succeeding in getting council leaders of all parties to sign and send a letter to the Scottish government pointing out that Scotland’s councils faced a real-terms cut of £371m for 2022-23. 

It being an election year, £100m was found down the back of a sofa to placate the mob. They needn’t have bothered. The table below shows the results for Scotland as a whole.

These results show that the size and scale of the cuts did not matter as the SNP received solid backing for its candidates. 

This is further emphasised by the turnout of 44.8 per cent in Scotland as a whole. Voters are not bothered about the cuts to their councils.

This will have informed the thinking behind the recent pronouncement by the Scottish Finance Secretary that up to 2025-26 councils can expect a real-terms cut of 7 per cent. 

Westminster will be blamed and many on the left will repeat that soundbite, but this is not the whole story.

In 2017-18 the Scottish government had a budget of £34.461 billion and underspent it by £339m — comprising resource of £287m and capital of £52m. 

The following year in 2018-19 it had a budget of £36.137bn and a record underspend of £778m, comprising resource of £508m and capital of £270m.

In 2019-20 it had a budget of £36.796bn but due to Covid it had a resource overspend of £899m but still had a capital underspend of £230m.

In 2020-21 the budget was boosted by 27 per cent in the main thanks to UK Covid monies to £50.7bn, but still in the year of Covid managed a resource underspend of £373m and capital underspend of £207m.

A whopping £580m underspend in the year of Covid and nothing said.

Astonishing. The real point here is that Cosla demands on behalf of all Scotland’s councils could have been met each year.

The financial position in each year was known when budgets for councils were set by Holyrood and Cosla formulated its demand in response. A choice was made to pass on cuts to councils. So what needs to be done?

The left needs to organise around a campaign for “Fair Funding for Councils.”

This needs to be done within communities, within trade unions and trades councils, within political parties, within councils and also in support for councillors opposing cuts.

Even the business community could get involved, especially when you tell them that their councils collected business rates, which councils pass direct to the Scottish government, but in turn received less back to the order of £156m in 2017-18 and £165m in 2018-19 than was collected. Where did that go and on what?

The SNP was elected on a promise to end the “unfair” council tax in 2007 and has failed to deliver.

It was dodged as part of the compact with the Tories for the 2007-12 administration.

However the majority administration of 2012-16 couldn’t avoid the pressure from councils and public-sector trade unions to tackle the “unfair council tax” promised in 2007.

Aping the Westminster tactic of an “enquiry,” a commission into funding worked to produce the Just Change report in 2015.

Issued jointly between the Scottish government and Cosla, it stated that there was “an unarguable case for change” which was expected to be brought in by the Parliament elected in 2016-21.

It wasn’t despite Holyrood taking a year out and passing no legislation in its first year.

There is no sign that this will be tackled by this administration elected last year and in office until 2025-26.

That change is needed but it will take pressure from outside Holyrood to make that change happen as Holyrood has made it quite clear that it prefers to pass on cuts than take the responsibility, for which proclamations are issued when pressed but action avoided.

The warning has been given with the ministerial statement on the Resource Spending Review Framework on May 31.

The minister proclaimed: “We need to focus on how the public sector can reform to be more efficient … so reform will focus on: maximising revenue through public-sector innovation; reform of the public-sector estate; reform of the public body landscape; improving public procurement.”

This language is familiar to the left and translates into job losses, asset-stripping and contracting culture, not public service provision.

In its review of local government finance in Scotland, Audit Scotland points out that “councils are operating in a difficult and uncertain strategic context and face longer-term financial pressures…” and that this is due to a “…real-terms reduction in funding from the Scottish government … since 2013-14 larger than the rest of the Scottish government budget over the same period.” 

Public service provision has been built up over time with demands and struggle from the shop floor with a legacy of parks, libraries, leisure centres, council housing, community centres, jobs with recognised terms and conditions all of which will play a key role in our communities in the recovery from Covid.

However, given the funding framework in which councils have been placed they will have to be “more efficient.”

They will have to “maximise revenue through innovation.” They will have to “reform the public-sector estate.”

The inheritance of councils from their predecessors is one that has taken generations and struggle to build but, like the middle aisle of Lidl, once it’s gone it’s gone.

The precarious position of councils is known. The terrain has been mapped out. So what will it be — flag-waving or service-saving? Which side are you on?

Gordon Munro was a city of Edinburgh councillor from 2003-22, Leith ward, Labour.

This article was previously published in July/August issue of Scottish Left Review (www.scottishleftreview.scot).

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