Call to release missing millions for budget
Labour insists South Lanarkshire is being‘ripped off’
South Lanarkshire Council won’t need to make any budget cuts next year after receiving a larger grant from the Scottish Government.
However, opposition councillors say that the local authority is still being “ripped off.”
Leader of the Labour group, Councillor Joe Fagan, has said the proposed funding “doesn’t even come close” to what the council will need.
The Scottish Government have said it is “extremely grateful to local authorities” and has announced a 2.5 per cent increase in funding this year.
Cross-party budget talks have been taking place over the past month in order to bridge an estimated gap of £11.768 million.
Executive director for finance Paul Manning told the council’s executive committee on Wednesday, February 10, that there was “capacity for investment” after an increased grant settlement was announced.
At the start of the budget process, South Lanarkshire Council had assumed the grant settlement for 2021-22 would be cut by one per cent.
But last month finance secretary Kate Forbes announced funding for local government would be increased next year, resulting in a 2.5 per cent increase for South Lanarkshire Council.
As a result, councillors will now have an extra £7.6 million over and above current commitments to invest in the region when they decide next year’s budget on Wednesday, February 24.
However, Cosla had campaigned for a £697m increase in funding for council revenue budgets as well as a £30m increase in capital funding and an extra £770m to help with the costs of Covid-19.
Last month Ms Forbes announced that Scotland’s 32 local authorities would get less than half of that.
Revenue funding is set to increase by £335m, capital funding by £10m and £259m in flexible funding will be made available to help councils cope with Covid-19 costs.
South Lanarkshire’s share of the shortfall between what Cosla had asked for and what the Scottish Government announced is approximately £53m.
Labour’s group leader Councillor Fagan has demanded that the Scottish Government release the £53m to South Lanarkshire Council this year.
He said: “This budget has completely unravelled. It doesn’t meet the needs of our residents. It doesn’t even come close.
“While council leaders from other parts of Scotland have been pressing ministers on funding, the SNP here have been silent.
“They have a responsibility to shield communities from austerity but they would rather shield Nicola Sturgeon from the blame. If they won’t stand up for local people now, they never will.
“The council has been consulting on appalling cuts to breakfast clubs, holiday lunch clubs, the early years, schools and frontline jobs.
“Even if they stop the worst of those cuts this year, South Lanarkshire faces an £83m spending gap in the years to come. That is simply not sustainable. Something has to change.
“Labour are calling on the SNP Government to pay up, give our communities a fair deal and release South Lanarkshire’s missing millions. We can put that money to work locally – protecting services, securing jobs and rebuilding from Covid.”
A spokesperson for the local authority’s ruling SNP group said: “The people of South Lanarkshire are more interested in political parties working together to reach a consensus than throwing mud at each other and hoping something sticks. The Labour party are once again carping from the sidelines and playing uninformed political games.
“If they had engaged in the process of setting next year’s budget, they would be aware that the council received a real term increase in funding from the Scottish Government.
“That will allow us to not only protect frontline services but invest in our economic recovery from the pandemic.”
A Scottish Government spokesperson said: “We are extremely grateful to local authorities for the crucial role they continue to play in maintaining critical public services, managing welfare support and administering key grant funding throughout the pandemic.
In 2021-22, South Lanarkshire Council will receive a total funding package of £649.3m to support local services, which includes an extra £15.5m to support vital day-to-day services, equivalent to an increase of 2.5 per cent compared to 2020-21.
“The day-to-day service funding includes £4.9m to compensate the council for their decision to freeze council tax levels, helping to protect household incomes.
“South Lanarkshire Council will also receive their share of the £259m in 2021-22 to support Covid-19 pressures, which they will be able to spend as they see fit for the maximum benefit of their community.”
Mr Manning also warned that although there was “capacity for investment”, some of that may need to be used to cover a potential pay award following the Scottish Government’s plans to increase pay for public sector workers.
It is expected that around £3m could be needed to properly fund a similar pay award in South Lanarkshire.
They [the SNP] have a responsibility ... if they won’t stand up for local people now, they never will