COUNCIL chiefs have called for an “urgent meeting” with the First Minister and Finance Secretary over the impact of the Scottish Government’s spending plans.
On Tuesday, Kate Forbes set out a four-year plan for government funding, which gives indicative spending plans across all areas of Government.
For local government, initial plans will keep funding at £10.6 billion until 2025-26, when the funding would rise by £100 million for the following year.
As a result of the stagnation and a projected rise in inflation, funding is expected to decline in real terms. Council chiefs have said this is “deeply concerning” for local communities who rely on services.
Local authorities have said the funding pledges will result in a cut to jobs and public services.
Gail Macgregor, the Convention of Scottish Local Authorities (Cosla) resources spokesperson, said: “Every year at budget time, Cosla argues for fair funding for local government to maintain the essential services our communities rely on.
“No increase in our core funding damages these services and yesterday’s announcement will see this continue for at least the next three years. Our communities are starting to see and feel the difference.”
Cosla said that the plans will essentially mean “fewer jobs and cuts to services” and cited the Fraser of Allander Institute who “recognised the impact on councils”, stating that local authority budgets will decline by 7% in real terms between 2022-23 and 2026-27.
Meanwhile, the Law Society of Scotland said funding detailed in the review risked a “disaster for the justice sector”.
Society president Murray Etherington said: “It amounts to a real-terms cut of at least 20% by 2027, affecting budgets for the courts, the judges, the prosecution and legal aid.
“We are already struggling with the capacity to reduce court backlogs that will run until 2026 as a result of the pandemic.
“Complainers and witnesses are already waiting far longer to reach a resolution in court.
“The presumption of innocence is central to our justice system, yet there are twice the number of people on remand awaiting trial than before the pandemic and they are being held far longer in custody and at huge financial cost because of these delays.”
The justice portfolio is due to receive funding of £2.8 billion, rising to £2.95 billion in 2025-26 and £2.96 billion in 2026-27.
Funding for the Scottish Courts and Tribunals Service will remain frozen at £100 million, with the same for legal aid at £151 million and £39 million for the judiciary.
The Scottish Government said the spending review did not "replace" the Scottish budget process, adding that portfolios "may vary" from those set out in the plan.
A spokesperson added: “According to the Scottish Fiscal Commission (SFC), the overall Scottish Budget fell by 5.2% in real terms between 2021-22 and 2022-23 with a further 1% real-terms reduction forecast sustained until 2025-26.
"Once we have prioritised additional support through social security and welfare – including the £25 a week Scottish Child Payment to help families and lift children out of poverty – and funded the NHS, SFC analysis shows the funding available for all other portfolios shrinks by 8 per cent in real terms in 2025-26.
"Under these most challenging of circumstances, we have maintained the Local Government revenue budget at current levels with an additional £100 million being added in 2026-27.
“The Scottish Government will work closely with COSLA over the coming months to agree a new deal for Local Government in Scotland including the development of fiscal framework to deliver greater flexibility over financial arrangements for local government with improved accountability for the delivery of national outcomes.”
It comes as the First Minister defended allocating £20 million to hold indyref2 in 2023 during her first public appearance after recovering from Covid-19.
