Councils ‘face challenges’ after Scottish Budget

Council leaders may face “challenges” in maintaining and improving schools and meeting net zero targets as a result of the Scottish Budget, according to independent analysis.

The Scottish Parliament Information Centre (SPICE) said the tax and spending plans contained “a lack of clarity” on issues such as public sector reform.

Shona Robison, the Deputy first minister and finance Secretary, published the draft Budget on December 19 amid warnings it would be the most difficult of the devolution era. She said it had involved making “wicked decisions and choices”.

SPICE said spending on health and social security had been prioritised, while revenue funding for councils – used for day-to-day spending such as salaries – would increase by 5 per cent in real terms. However, local authority capital spending – used for new infrastructure and repairs – will fall significantly.

“Despite a positive settlement for the revenue budget for local authorities, capital budgets are seeing a significant reduction,” the body said in a new report. “This could present challenges in maintaining and improving the school estate and in delivering against net zero targets.”

The Scottish Government previously said it would publish revised capital spending plans in light of rising costs from inflation and reduced funding from UK ministers. SPICE said no revised plans were published.

A Scottish Government spokesman said: “The Scottish Budget targets funding to people and public services following a ‘worstcase scenario’ UK government Autumn Statement, as described by the deputy first minister, which failed to provide the investment needed in services and infrastructure.

“Creating financially sustainable person-centred public services is one of our key priorities.”