Two Worrying Articles On Scottish And English Budget Gaps
11th February 2024
North and south Scotland or England councils are in trouble over their budget gaps.
The threats to local services may never have been so bad since 2008.
To read about the issues here are links to the articles -
How will Scotland plug its one and a half billion budget shortfall
Since this article the Scottish Government has made changes to the tax system in Scotland but it will not plug the gap.
Inflation has forced up the costs of running public services but another part of the answer lies in a string of costly promises made by First Minister Humza Yousaf.
He has pushed up welfare payments to tackle poverty, with both the Scottish Child Payment and the Adult Disability Payment (which is replacing the Personal Independence Payment) incurring significant additional costs.
He has authorised pay deals with public sector workers in order to avoid strike action in Scotland. The Fraser of Allander Institute estimates this cost at £500m per year.
Four reforms to stop English councils from going bankrupt
The government must plug a £4 billion funding gap across the board.