Calls for city to get big share of funding

CALLS are being made for Glasgow to get a major share of funding allocated to councils by the Scottish Government.

Finance Secretary Kate Forbes announced a package of financial flexibilities and extra funding for local authorities “worth up to £ 750 million”.

Councils had their income slashed when lockdown was introduced and a scheme to cover some of those losses is being finalised.

Glasgow City Council has reported a £ 90m deficit, with arms- length organisation Glasgow Life, which runs cultural, sporting and community venues, facing a shortfall of around £ 25m.

Ms Forbes said the lost income scheme is worth an estimated £ 90m, subject to confirmation of UK Government funding, and trusts delivering services for councils can access £ 49m of already confirmed funding.

She also revealed councils will be granted additional spending powers, which could be worth around £ 600m.

Councillor Jon Molyneux, of Glasgow Greens, said: “Additional funding to cover councils’ lost income is welcome though we still need to see the details of how it will be allocated.

“There is certainly a strong argument for Glasgow to get a major share of funding.”

Following Ms Forbes’ announcement, councils will be able to use capital receipts to meet one- off revenue funding pressures, such as Covid- 19 related costs, and extend dept repayment periods over the life of an asset rather than the contract period.

They can also take repayment holidays in either 2020/ 21 or 2021/ 22 to defer loan fund repayments.

Ms Forbes said the

Scottish

Government had delivered on a “commitment to support councils across Scotland with a game changing package of financial flexibilities, giving them the powers they need to make informed decisions about spending at a local level”.

However, Johanna Baxter, head of local government at Unison Scotland, said the announcement “does not solve the problem”.

“All the fiscal flexibilities do is kick the can down the road. It’s like increasing the limit on your credit card – the debt is still there and will still have to be addressed.

“Jobs and services remain at risk and while we welcome constructive discussions with the Scottish Government, we need a long- term commitment to local government services.”

Glasgow Tories leader Thomas Kerr welcomed the announcement but said “the devil will be in the detail” of how the funding is allocated.