Councils seek ‘fair share’ of increased funding from Budget

Scottish councils say they must receive their fair share of new funds from the UK Budget, as they called for “sustainable investment” in local authorities.

Council umbrella body Cosla has written to the Scottish and UK governments seeking clarity on the funding arrangements, after Chancellor Rachel Reeves delivered the first Labour Budget in 14 years earlier this week.

The Scottish Government is now in line to receive £47.7 billion in the next financial year – including £3.4 billion due as a result of decisions made by the Chancellor.

Scottish Labour says the Budget will lead to a further investment of £1.4 billion in a number of local projects over the next decade.

These include town plans, levelling up money and green freeports.

Cosla resources spokeswoman Katie Hagmann said: “Following the UK Budget announcement, I have written today to both UK Government and Scottish Government seeking assurance that local government in Scotland and the communities we serve will receive our fair share of the additional funds announced in the UK Budget.

“Scottish local government has seen significant cuts to our core settlement over time, and we hope that moving into 2025/26 we can begin to reverse these cuts and ensure that there is sustainable investment in local public services.

“We have sought assurances from the UK Government around some areas, including the increase to employer national insurance contributions which will not only have a detrimental impact on councils as employers, but also on the many partner organisations who deliver vital services across our communities, for example social care and children’s services.

“We will continue to work with both UK Government and Scottish Government to minimise any detriment to our communities and their local services.”

Commenting on the funding for local projects, Scottish Labour economy spokesman Daniel Johnson said: “As well as delivering the largest block grant in the history of devolution to the Scottish Parliament, the Labour Government is investing another £1.4 billion directly in Scotland’s future.

“This will help to renew infrastructure and promote growth the length and breadth of Scotland.

“Labour’s direct investment in these projects will strengthen local communities and economies – but we need a government with ambition in Holyrood too.”

A spokesman for the Scottish Government said: “We are assessing the full implications of the Chancellor’s autumn Budget statement.

“Finance Secretary Shona Robison will be announcing further details as part of the Scottish Budget on December 4.

“We recognise the crucial role councils play in their communities.

“That is why we are making available record funding of more than £14 billion to councils in 2024-25 and our commitment to meaningful budget engagement with Cosla will continue ahead of the Scottish Budget.”

A spokesman for the UK Government said: “Funding for local government is a responsibility devolved to the Scottish Government and the autumn Budget provided it with a record £47.7 billion settlement – the largest in real terms in the history of devolution.

“Given the impacts of changes to employer national insurance contributions are complex, this settlement does not reflect this additional support the Chancellor is providing for the public sector.

“We are working through the budget implications with the Scottish Government.”