Funding Of More Than £13.2 Billion For Councils But This Falls Far Short Of Keeping Up With Increased Costs

21st December 2022

Details of how more than £13.2 billion in Scottish Government funding for 2023-24 will be distributed among local authorities have been published.

They include a cash increase in day-to-day revenue funding of 3.5% for next year, compared with the 2022-23 Scottish Budget.

The settlement represents a total cash increase of £570 million or 4.5%. This is equivalent to a real terms rise of 1.3% to support vital council services and follows the most challenging Scottish Budget settlement since devolution.

Fraser of Allender commented, "Funding for local government has been increased by £550m, representing a 3.7% increase and a real-terms decrease relative to a GDP deflator of 4.9%".

The Scottish Government has enabled local authorities to make their own local decisions, with financial flexibility on council tax, employability and homelessness services, as well as early learning and schools workforce provision.

Deputy First Minister John Swinney said, "I recognise the challenge which local councils face in delivering services during the current bleak economic climate.

"The 2023-24 Budget confirms that, despite the most turbulent economic and financial context that most people can remember, and the huge pressure on public finances, we are providing councils with a real terms budget increase of 1.3% next year.

BUDGET REALITY = £71m cash increase, once policy commitments for 23/24 are taken into account. This cash increase does not address pressures of £1bn, identified by COSLA

"Local government had sought even more funding but - candidly - there was no way in the current climate we were going to be able to meet the request in full. The entire country is having to make difficult choices, including government and local authorities, but we have managed to find an extra £570 million for councils on top of last year's budget allocations.

"We are building flexibility and autonomy into how budgets can be spent, but a more fundamental shift is required. We will work with local authorities to review how public services are delivered, so that they are designed around the needs and interests of the people and communities of Scotland.

“That means tackling problems through early intervention before they become acute. It means creating a more effective way of working together with local government by focusing on outcomes, not process."