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Scottish councils need more funding unlocked

“COUNCILS are showing signs of increasing financial stress,” Audit Scotland, Local Government in Scotland, financial overview 2016-17.

That stark view from the dispassionate observation of the auditor should make all sit up and take notice, but the Brigadoon style of Scottish politics means that it’s ignored.

The SNP, supported by the party that likes to say Yes, the Greens, talks of a “positive settlement” and “extra money” almost as though co-ordinated. There is no such thing. Let the facts speak for themselves.

Local government in Scotland has faced a real terms decrease of 7.6 per cent since 2010-11.

The Scottish government’s direction of local government funding tied to grant conditions means that 10 per cent of all council funding is allocated to Scottish government, not local government priorities.

On top of this £2.4 billion is delegated to Integrated Joint Boards for Health and Social Care. What does this mean in real terms? It means that councils have 15,642 fewer workers.

The Convention of Scottish Local Authorities (Cosla) says that Scottish councils need £545 million to stand still this year. Only when it gets above that amount can any figure be described as “positive” or “extra money.”

Unison points out that “the Scottish government will receive a £188m cash increase in its budget from Westminster, yet councils in Scotland get nothing.

“Despite the spin, even a 3 per cent increase in the council tax does not equal a real-terms revenue increase. In real terms it is a £135m cut, probably much higher because ‘real terms’ assumes only 1.4 per cent for inflation.” The pattern from 2010-11 continues and councils and the people they serve suffer.

The deluded and/or party hacks will say that the Scottish Parliament is redistributing wealth and using its powers. It is estimated that this will raise £164m.

Yet, as the STUC points out, “The proposals therefore may look very progressive on paper, but they fail to contribute meaningfully to the redistribution of wealth.”

The STUC goes on to say that it “was possible to raise somewhere in the region of £800m while seeing no tax increases for anyone earning below the median income.”  

Choices can be made in Scotland to halt the decline of local government in Scotland. The Scottish government could even choose to implement the Just Change report recommendations from December 2015.

This report commissioned jointly by Cosla and the Scottish government made recommendations on reform of local authority finances.

It has not lasted beyond the press releases despite the fact that it could be dusted off and used to help local government and halt its decline in Scotland, but I doubt this will happen.

The evidence for this is the fact that the Scottish Parliament had a year without any legislation after the report was issued — a year in which this legislation could have been brought forward.

The first Bill it brought forward sought to reintroduce the docking of hunting dogs’ tails. Of all the measures they could have brought forward this is what was prioritised.

As Scotland’s councils set their budgets and decide what to cut this year, they should remind their MSPs that they have the power to change local government funding — the final budget debate is today — and help prevent the decline of local government.

Here is what the STUC says about the current state of understanding in the Scottish Parliament of the financial stress faced by councils: “The failure to use the Scottish Parliament’s powers ambitiously is clear.

“The income tax proposals fail to raise sufficient revenue and the modest additional revenues raised primarily fund tax cuts for business.

“This suggests not just a worrying lack of commitment to properly resourcing public services but a misunderstanding of the best way to support the economy by the Scottish government.”

“Just change” is what councils want and it’s good for the economy of Scotland too.

Gordon Munro is a Labour councillor for Leith Ward.

 

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