Call for fairer city funding deal
A FORMER Lord Provost is calling for a “Team Glasgow” approach to push both governments for a fairer funding deal for Scotland's largest city.
Labour Councillor Philip Braat says at a time when the city is facing its biggest budget gap in a single year of £120 million, both Holyrood and Westminster need to work together for the people of Glasgow.
He is raising the financial plight in a motion which will go before Glasgow's full council next Thursday – the same day as the Scottish Government sets its budget. And it added local authorities should have “ad hoc” revenue raising powers.
Last month, it was revealed that unless there is more cash allocated from the Scottish Government, the council is projecting a shortfall of almost £120m for 2023/24. Councillors were told of the dire financial situation, which is a deficit 10 times higher than last year.
Inflation is the main reason accounting for £87m of the deficit with pay inflation accounting for most of that.
Cllr Braat said: “Glasgow has already found savings of in excess of £300m since 2013/14 and has seen a reduction of thousands of staff during that period as well, leaving certain frontline services understaffed. The current budget pressures will take those savings to over £400m in less than a decade. Whether it is bin collections, pothole repairs, or care needs assessments, we have seen the significant impact of those savings already in our communities.
“On top of that, the Scottish Government is keen on making announcements that are actually committing Local Government to do things, but then do not stump up all the cash needed to fulfil those commitments, yet expect us to plug the gap out of our discretionary spending.”
The council is being asked to support the motion, which adds: “This situation is unsustainable; it is to the direct detriment of the services that our citizens rely on; and continues to place extraordinary pressure on all staff, who continue to strive to deliver for the citizens they serve.”
Cllr Braat highlights that the only locally set tax, Council Tax, accounts for just 18 per cent of the council's budget, with the motion concluding that the onus for meeting the larger part of the 2023/24, and subsequent years, deficit falls to the Scottish and UK Governments working together.
The council is urged to note that neither Government operates a fixed budget, and that each has – to varying degrees – the flexibility to increase the resources available to them through taxation.
Cllr Braat added: “The council must speak with one voice in demanding a fairer funding settlement from both governments and in advocating for the further redistribution of wealth to support and protect vital front-line services.”
The motion urges the council to take the view that investments in Local Government reduce reactive spending elsewhere in the public sector, and that this must be recognised in the Scottish Government's budget.
Cllr Braat added: “Local Government is not some delivery agent for the SNP in Holyrood. We are supposed to be an equal partner, accountable to our constituents to deliver services that our communities need. Councillors are elected on exactly the same basis as MSPS and the Scottish Government.”
The motion urges the council to write to the both the Prime
Minister and First Minister along with the Chancellor of the Exchequer, and the Scottish Government's Cabinet Secretary for Finance in these terms.
Last month Martin Booth, the council's finance director, prepared the report detailing the budget implications and the figure of £119.4m
Just days later, Glasgow City Council reached a £770m agreement to settle outstanding claims in an equal pay dispute.
The local authority has had to “sell and leaseback” a range of its buildings, including the city's Kelvingrove Art Gallery and the City Chambers, in order to afford the compensation.
A Scottish Government spokesperson said it is treating councils fairly and providing a real terms increase of 6.3 per cent to local authority budgets this year, adding: “Scotland's settlements from the UK Government have suffered a decade of austerity, with average real terms cuts of over 5% equating to a loss of £18 billion. Despite this, local authority revenue funding is £2.2bn or 22.9% higher in cash terms in 2022-23 than it was in 2013-14.”