What Is Happening To Local Government Finances And Why Are Councils Struggling?

20th September 2023

A story published in The Independent yesterday 19 September 2023 highlights more or less what is happening not just in England but also to Scottish councils.

As both Westminster and the Scottish Government have squeezed council budgets the same issues have arisen. The equal pay settlements may have been handled better in some Scottish councils such as Highland but the huge sums involved have hit places like Glasgow hard. No matter how councils have chosen to deal with he huge settlement sums over the past 10 years there is no doubt that many things have suffered such as roads, education and more.

Read the article HERE and whilst reading reflect on the Scottish dimension that what has happened to English councils such as Birmingham and other towns is on the brink of happening in Scotland.

If you need evidence of how serious the problems are for councils you need only look at two significant papers on last weeks Highland council agenda.

Item 11 Mid-Year Revenue Budget Update Report

Item 12 Capital Programme Review Report

These two papers are packed with cuts.

The saving grace is that Highland council has a good level of reserves but these will be used up fast unless the measures being take are effective. Everyone will feel some of the pain as the changes come into force.

Scottish Government may not offer much help as it itself has huge budget deficit problem. Some of you may recall the John Swiney before leaving office stated there was potential on billion pound gap in funds