Cosla Backs Labour Amendment In Protest To SNPs Council Funding Plans

30th January 2021

COSLA leaders have today voted in favour of a Scottish Labour amendment in protest against the SNP's plans for Local Government funding put forward yesterday.

Despite Scotland's councils facing 14 years of underfunding and the loss of £767 million due to the pandemic, the Scottish Government has called for a council tax freeze but is offering financial support that does not come close to matching the losses incurred by councils.

The Scottish Labour amendment proposed by Cllr David Ross and adopted by COSLA leaders reads:

"Express their disappointment with the core grant proposed for local government and announced in yesterday’s Scottish Budget which fails to provide sufficient funding to maintain vital local services in our communities.

"Note that the proposed grant settlement for the essential local services provided by councils falls well short of the proportionate increase in Scottish Government’s budget.

“Therefore, mandate COSLA to engage with Scottish Government and all parties represented in the Scottish Parliament to continue to put the case for the core funding necessary to maintain local services such as schools, social care for our elderly, environmental services, roads and transport and community facilities.

“In addition to the asks contained in COSLA’s budget paper ‘Respect our communities - Protect our funding’, Leaders highlight the following demands in relation to the proposed local government settlement:

That funding to support a freeze in council tax for the coming year should be baselined to prevent councils having to double the council tax increase or cut services in future years;

That a fair pay increase for council staff which not only meets increased costs of living but also starts to restore the real cuts in wages in past years, is fully funded by Scottish Government through the settlement;

That the full loss of income incurred by local government including ALEOs, due to the Covid pandemic should be reimbursed by Scottish Government;

That the cuts in capital funding over recent years, should be reversed to allow councils to invest in facilities, housing and infrastructure to support our communities and local economies particularly in the context of recovering from the Covid 19 crisis.

Amendment to recommendation (iii)

i. Agree that Councillor Macgregor makes a formal request to the Cabinet Secretary for Finance to agree actions to proceed with the Service Concession Arrangement (PPP/PFI) on an ongoing annuity basis. We reject the condition attached to the flexibility that requires a review of the Loans Fund and the move to straight line depreciation within Councils. The Loans Review and the resultant change will be to the detriment of local communities, leading to a dramatic reduction in capital expenditure on critical infrastructure such as new schools, housing and roads, and a significant resultant loss of jobs.

“Given the continuing uncertainties regarding consequentials and potential further funding from the UK Government to Scotland, COSLA should seek assurances from the Scottish Government that such additional funding related to local government services should be passed on in full to Scottish local government and should advise Councils to consider delaying their budget setting until after this has become clear in early March."

Commenting, Scottish Labour local government spokesperson Sarah Boyack said: “The SNP has once again failed to support Scotland’s councils and the communities that they serve.

“Today COSLA is demanding action to protect council finances, those that work for our local councils and council services."

COSLA Labour group leader and co-leader of Fife Council David Ross added: “Scotland’s councils will not sit back and allow another year of harsh cuts.

“The SNP must engage with COSLA’s demands and change their plans. Failure to do so would inflict serious damage on communities across Scotland.”