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Warning councils face significant budget challenges

Warning councils face significant budget challenges

Local authorities face an ever-increasing challenge to deliver the council tax freeze, balance budgets and protect frontline services, according to the body representing council chief executives.

The Society of Local Authority Chief Executives (Solace) and council body Cosla will appear before Holyrood’s Local Government Committee to give evidence on the Scottish Government’s draft Budget for next year.

MSPs will also be given the opportunity to question Finance Secretary John Swinney on the 2014/15 local government settlement.

Ahead of the meeting, Solace set out the financial difficulties faced by councils since 2011 and the “significant levels of savings” required as a result of continuing budget reductions.

Its written submission stated: “With every passing year the delivery of the mutually-agreed priorities and outcomes becomes more challenging.

“The latest Scottish budget figures show reductions in both cash and real terms for local government over the next spending review period, so there will be further efficiencies and savings required while we continue to target resources at national and local priorities.”

It continued: “Delivering a council tax freeze for the next two financial years will be challenging.

“Based on past experience, local authorities will meet this challenge but with each passing year the achievement of the revenue budget savings necessary to achieve a balanced revenue budget, while protecting front-line services, becomes more difficult.”

Solace said particular issues facing councils include the implementation of legislation to integrate health and social care services, delivering the final phases of the Curriculum for Excellence in schools, mitigating the effects of the UK Government’s welfare reforms, particularly Universal Credit, and the demand for services as a result of demographic changes. The organisation said further assistance from the Government to mitigate the impact of welfare reform would be helpful.