Local authorities have been warned of uncertainty and delays to their budgets as a result of the general election.
First Minister Nicola Sturgeon yesterday said the UK Government may not set its own budget until March, which would have a severe knock-on effect on the Scottish Government and local authorities.
Both the Scottish government and the country’s 32 councils are required by law to set a balanced budget by the end of the financial year – March 31.
Speaking to the Scottish parliament on Tuesday, Ms Sturgeon warned she had not been told when to expect the Scottish block-grant – which is then divided to local authorities annually to cater for the annual budget.
She said: “This parliament is required to deliver a budget before the start of the next financial year and Scotland’s local authorities would expect to set their budgets in late February or early March.
“At this point, the UK Government has not confirmed when it will produce its own budget—and with it the block grant adjustments for Scotland—but it might not be until March.
“Although contingency planning and alternative options have been under consideration for some time, meeting this timetable will require parties to work together.
“In the spirit in which this Parliament was established, and notwithstanding the many disagreements between us, I hope that we can find common ground and work together on a range of issues.”
When asked what contingencies the government has made, the first minister reiterated: “The Scottish Government before the election made contact with the Chancellor of the Exchequer and we made very clear how it would impact local authority budgets.
“We don’t know when the UK government will present its budget but it could be as late as march.
“Does this not paint a picture on how unsatisfactory this state of affairs is now.
“No self respecting parliament should be in this position for goodness sake lets make this parliament an independent one.”
A Treasury Spokesperson said: “We’re working with the Scottish Government as part of an agreed process to provide the information they need to prepare their budget.
“Nothing stops the Scottish Parliament from passing a budget before the UK Budget.”
