The Press and Journal (Inverness, Highlands, and Islands)
‘Schools will stay out unless we get more Covid cash’
Council chiefs in emergency funds warning to Scottish Government
CORONAVIRUS testing and the reopening of schools could be put at risk unless councils get an urgent funding lifeline, it has been claimed.
MSPs heard yesterday that struggling local authorities were still waiting for the Scottish Government to hand over £155 million in emergency cash from Westminster.
And even when the money is passed on, councils expect their funding shortfall to hit £100m this month, and then keep rising.
Alison Evison, president of local government body Cosla, told MSPs that key measures “cannot be done” without additional support.
The Aberdeenshire councillor said: “The work we do in social care is tremendous, and that is going to be of increasing importance – Test and Protect and normal care for people as well.
“The reconfiguration of our schools to make sure social distancing is in place, to make sure the children and staff can return safely.
“Looking at the size of buildings, looking at how you get children to school, all of that is going to be a huge expense as well, and obviously the key worker hubs are going to carry on at the same time as well. We cannot do this without extra funding, it just cannot be done, so we need to carry on those talks with the Scottish Government.”
A Scottish Government spokesman said the £155m would be given to councils this month, with the first payment due yesterday.
Scottish council chiefs have warned they will be unable to reopen schools or help deliver coronavirus testing without an urgent funding boost.
Alison Evison, president of local government body Cosla, told MSPs yesterday that it “cannot be done” without additional finances.
The Aberdeenshire councillor made the plea as she revealed that councils were still waiting for the Scottish Government to hand over £155 million in coronavirus funding from Westminster.
Giving evidence to Holyrood’s local government committee, Mrs Evison said that Scottish local authorities would have an estimated funding shortfall of £100m by the end of this month, even after the £155m was delivered.
She said that figure would only rise, that council budgets were “going to be affected for a very long time”, and that spending plans set out for this financial year “don’t make sense at all now”, so would have to be overhauled.
She added: “We cannot do this on our own – services that councils provide on the ground are essential and will carry on being essential.
“We cannot do this without extra funding, so we need to carry on those talks with the Scottish Government, we need to work together and to work with the UK Government as well, because otherwise we cannot deliver.”
Holyrood previously faced questions after the UK Government announced an additional £1.6 billion of support for councils south of the border, with £155m earmarked for Scotland under the Barnett Formula.
After a campaign by councils and trade unions, Finance Secretary Kate Forbes confirmed at Holyrood last month that “every penny” would be made available.
Yesterday, Mrs Evison said that despite making it clear that it was the “priority of council leaders” for the money to be awarded “without delay”, it had not yet been received.
After the evidence session, the Scottish Government said the first “instalment” of the money had been made yesterday.
Labour MSP Sarah Boyack said: “The delay in passing on funds has only deepened the financial crisis that councils face and funding that will eventually be made available is too little and too late.”
Graham Simpson, Scottish Conservative communities spokesman, said: “First the SNP made them fight for the money and now, for unknown reasons, they still haven’t handed it over – some local authorities barely have any reserves left.”
A Scottish Government spokesman said: “We have been working closely with Cosla and local governments since the beginning of the pandemic and have committed more than £300m of additional funding for Covid-19 measures, on top of the local government finance settlement of £11.4bn from this year’s budget.
“The payments of the local government consequentials worth £155m are being made to councils in June alongside the weekly general revenue grant payments.”
For councils in Scotland, the “new normal” ushered in by the coronavirus pandemic has a very familiar feel to it. Ever since the 2008 financial crash, local authorities have been asked each year to do more with less, as rising demand for services has continued to outstrip funding.
To survive, they have had to transform the way they operate, often with vastly reduced workforces and a notable deterioration in output.
Now, within weeks of setting out their spending plans for the year, they will be forced to rip up their budgets and start again from scratch.
Income streams have dried up because of the coronavirus crisis and a whole plethora of new pressures have been heaped on to local authorities at the same time – all while most of their staff have been asked to work from home.
Urgent duties include reorganising schools, administering crucial business grants and helping to launch Scotland’s new “test and protect” system.
These essential measures obviously must be delivered but, as Cosla president Alison Evison made clear to MSPs yesterday, that cannot happen without emergency funding.
The onus is therefore clearly on Holyrood and Westminster to set out immediately how and when these councils will be given the resources required to do the job.
“Ever since 2008, local authorities have been asked each year to do more with less”