Chiefs warn over staff pay hike

authorities will struggle to build new sports and cultural facilities 0 Derek Mackay: More fundingfor localservices

However Cosla said pay remains a major issue for local authorities.

The council umbrella group’s resource spokeswoman Gail Macgregor said: “We acknowledge the additional resources secured into the settlement for this year following extensive lobbying by Cosla.

“However this will not negate all of the challenges we still face, the main one obviously relates to pay for our workforce now that the Scottish Government has set out its public sector pay policy.

“This additional resource has to become built into the core of our budgets for future years.”

She added: “This year’s deal means Scotland’s councils are far from out of the woods and not cementing this funding into core budgets would be an extremely bad result for the delivery of essential services.

“Because quite simply with no money in the settlement from Scottish Government for pay, any pay rises for council workers can only come from cuts to services or council tax rises.”

Finance Secretary Derek Mackay said: “In spite of continued UK government real terms cuts to Scotland’s resource budget, we have treated local government very fairly. In 2018-19 councils will receive funding through the local government finance settlement of £10.7 billion.

“This will provide cash terms increase in funding for local revenue services of over £174 million - a 1.8 per cent rise, and capital spending of £89.9 million - an increase of 11.4 per cent.

“This delivers a real terms boost in both revenue and capital funding.”

0 There are fears that sports centre facilities would be hit