Partnership Or Passing The Buck As Scottish Government And Councils Sign Verity House Agreement

1st October 2023

The Verity house Agreement was signed up to by Scottish government and COSLA on 30th June 2023. Cynically one might ask if reducing ring fencing at time of severe budget restraint is really helpful or just buck passing as it does not prevent cuts or add any extra money to the coffers.

The announcement was made in glowing terms as follows -

A landmark agreement to forge a stronger partnership between local and national government has been signed by First Minister Humza Yousaf and COSLA President Shona Morrison.

The Verity House Agreement sets out principles for working together to empower local communities, tackle poverty, transform the economy and provide high-quality public services.

It includes commitments to:

agree a new Fiscal Framework governing how local authorities' funding is allocated, reducing ring-fencing and giving them greater control over their budgets to meet local needs

regularly review councils' powers and funding, with the expectation that services will be delivered at a local level unless agreed otherwise

incorporate the European Charter of Local Self-Government into Scots Law

reform public services, building on the partnership working established during the pandemic recovery

develop a framework for collecting and sharing evidence to ensure progress is maintained

The First Minister said:

"Today we have committed to build a stronger relationship with local government, with mutual trust and respect at its core.

"The Verity House Agreement is based on the idea that councils know best how to serve the people in their communities. By giving them greater flexibility over how they use their budgets and regularly reviewing their powers and funding, we can empower them to put that knowledge into practice - whether that's to tackle poverty, transform our economy to deliver net zero, or to provide the high quality public services on which we all rely.

"This is just the start of the process, and we look forward to working further with COSLA and councils in the interests of the people of Scotland."

Councillor Morrison said:

"Signing the Verity House Agreement today at COSLA's offices is a clear signal that both parties want to reset the relationship between central and local government in Scotland.

"This agreement is about creating a new way of working as a partnership of equals - discussing key issues as early as possible and using our collective expertise to deliver for communities across Scotland.

"Scottish local government is the sphere of government closest to the people of Scotland and delivers a range of essential services that impact on people's everyday lives and livelihoods - from education to improving health; from social care to the fabric of our communities.

"When national and local government work together to tackle shared priorities, the result will be better outcomes for the people of Scotland. This is ultimately what councils seek to achieve every day of every year - better local outcomes for the people we serve, enabling everyone to live well locally."

New Deal with Local Government Partnership Agreement

This agreement is a statement of our intent from this point forward and provides a high-level framework for our partnership -
it does not create legal obligations but it is Scottish and Local Governments' clear starting point and public commitment to the
principle of regular and meaningful engagement, and respect for each other’s democratic mandate, in order that we can work
together more effectively to improve the lives of the people of Scotland.

A more detailed programme of work will be developed jointly to underpin this Partnership Agreement, with all actions adhering to the Agreement’s principles. Below are just some examples:
By end September 2023:
• Improved engagement on budgetary matters will be well underway, in preparation for the Scottish Budget in December
• We will conclude a Fiscal Framework between Scottish Government and Local Government, of which regular budget
engagement will be a key part
• We will develop and agree a shared programme of activity underneath each of the three priorities, which will focus on the
period between now and the next Scottish Council Elections in 2027
By end October 2023:
• A first joint review of Specific Grants and In Year Transfers to Local Government will be undertaken with a view to identifying
those which can be baselined into the General Revenue Grant or General Capital Grant from financial year 2024-25, creating
more freedom and flexibility for Councils to address our shared priorities in locally appropriate ways

By end August 2024:
• We will have jointly considered the first year of implementation of this Verity House Agreement and the Fiscal Framework as a
whole, and agree any alterations or addendums required to ensure the ongoing effectiveness of these two key documents

Full details of the Partnership Agreement can be found at https://www.gov.scot/isbn/9781835210703 and
www.cosla.gov.uk/partnershipagreement

Comment
An agreement to move the decision making choices does not create and extra money and does not make the position any easier for councillors in coming months to make very hard decisions