Calls to scrap limit on council tax rise
Scotland’s local government body issues pre- budget warning
SCOTLAND’S councils face a funding shortfall of £ 360 million as the Covid- 19 crisis has left budgets “st raine d ” , local government leaders said.
The local authority organisation Cosla said the pandemic has resulted in a loss of income for councils, with cash raised from services such as parking and planning applications down along with reduced revenues from places such as libraries, art galleries, theatres and sports facilities.
It also complained that councils had been hit by a “reduction in core grant funding” from the Scottish Government since 201314 – with this coming at the same time as authorities were having to deal with increased demands.
The Glasgow Times revealed last week that the city is expected to face a £ 36 million funding shortfall going into the upcoming budget.
Cosla now wants Finance Secretary Kate Forbes to give local authorities almost £ 1.3 billion in the Scottish Budget for the coming year – which is due to be set out later this month.
Councils need more than £ 1.2 billion for day- to- day running costs, as well as further £ 637 million for capital spending, the organisation claimed.
It warned that any reduction in cash from the Scottish Government “will mean the impact on communities of Covid will be deeper, longer lasting, with widening inequalities”.
As well as demanding “fair funding” for councils, Cosla wants ministers to commit to not having any limit or cap on council tax increases.
Cosla resources spokeswoman Gail Macgregor said: “This year, across every community in Scotland, local government’s essential role has been magnified and once again we have delivered for our communities.
“Nobody in Scotland has been unaffected by this pandemic and the financial impacts of Covid- 19 are severe.
“Sustaining this lifeline support is placing extreme pressure on already strained budgets, and without fair funding for local government this year, the consequences for the most vulnerable in our communities would be unacceptable.”
First Minister Nicola Sturgeon said local councils were “doing a great job just now”.
With the Scottish Budget for 2021- 22 due to be unveiled on January 28, she said it was “usual at this time for councils and Cosla to be making financial bids and demands on government”.
A Scottish Government spokeswoman said: “Working in partnership with Cosla, we have provided a package of support for local services worth up to £ 750m, giving them the powers they need to make informed decisions about spending.
“Taken together with the additional £ 382.2m of funding that has already been committed, this brings the value of the overall Covid- 19 support package for councils to more than £ 1 billion.”