Council chiefs have issued a desperate plea over a “crisis” in local government following a “completely inadequate” Scottish Government budget.
Fife Council leader David Ross wrote to MSPs to warn authorities will be “unable to continue to provide basic service levels” over the next three years under current plans.
His administration faces a financial black hole equivalent to 750 full time staff members by 2025-26 and will need to raises taxes and cut services to balance the books.
Meanwhile, Dundee City Council leader John Alexander described the current financial outlook as “extremely challenging” and said bosses are effectively “working to make the least worst decisions at this point”.
Even 5% council tax rise won’t be enough
It comes as new analysis by the Institute for Fiscal Studies finds authorities face real-terms cuts to funding even if they increase council tax by 5% in each of the next two years.
A 5% rise would add around £140 to the average band D tax bill.
Mr Ross said: “The proposed local government finance settlement for the coming year is completely inadequate even to maintain current service levels let alone address emerging or unmet needs such as improving social care, tackling child poverty or addressing the challenges of climate change.
“This follows more than a decade of cuts to local government funding, restrictions and ringfencing of budgets.
“The next three years, based on the funding proposals of the Scottish Government, will see councils unable to continue to provide basic service levels.”
‘Significant’ cuts and tax rises
Fife Council has already identified around £26 million in savings for the coming year.
But that still leaves a budget gap of £11.5 million, rising to £33 million in 2024-25 and £54 million the following year.
Mr Ross said closing the gap “will require significant cuts to services or rises in council tax and will leave little or nothing available to meet new or emerging needs”.
A leaked document from the Convention of Scottish Local Authorities warned on Thursday that councils face shortfalls equivalent to 7,100 full time staff members over the next financial year.
Perth and Kinross, Dundee and Angus all refused to disclose the details they provided to Cosla before their own budget meetings in the coming weeks.
But an emergency gathering of leaders on Friday agreed the government’s expectations “cannot be met unless additional necessary resources are provided”.
Dundee council chief concerned
Dundee council boss John Alexander said his administration is focused on this year’s budget and has yet to consider the years ahead.
“These figures are officer projections of what could happen,” he said.
“They obviously illustrate the scale of concern but not necessarily how everything will land.
“Budgets are decided upon by politicians, not officers, and these figures don’t necessarily represent what councillors would do.”
‘Absolutely correct’ to note challenges
The Scottish Government’s budget began its passage through Holyrood on Thursday.
Speaking at First Minister’s Questions, Nicola Sturgeon said it is “absolutely correct” to note the difficulty facing local and central governments.
She said that if opposition leaders want more money to go to councils “then that is a legitimate proposal to make”.
But she added they must explain what other areas should lose out because the cash “would have to come from the National Health Service, the police budget, or other budgets”.
Conversation