Council leaders demand ministers provide ‘fair share’ of Budget cash

Council leaders are calling for a share of the extra cash coming to Holyrood ministers as a result of the UK Budget to be passed to local government.

It comes as local government body Cosla spoke of the “unprecedented strain” on services due to “extremely challenging” finances.

Local authorities made clear there should be no repeat of the council tax freeze when Finance Secretary Shona Robison unveils the Scottish Budget to MSPs next month.

Cosla also warned ministers against imposing a cap on council tax rises – saying matters such as these are a “decision for local authorities”.

With the Scottish Government in line for a £3.4 billion funding boost in 2025-26 thanks to Chancellor Rachel Reeves’s Budget, the local government body insisted it is “crucial that the Scottish Government passes on a fair share of the additional funding” to councils.

It argued this could help authorities fund “vital local investment in key areas such as health and social care, housing and education”.

Cosla made the plea after spending watchdogs at the Accounts Commission revealed in May that Scotland’s 32 councils were facing a collective budget shortfall of £585 million this year – with this estimated to increase to £780 million by 2026-27.

Local government leaders insisted: “As a minimum, all councils should have adequate funding to balance budgets and ensure the continuation of essential services.”

Cosla made clear that simply maintaining the existing funding levels, in a “flat-cash settlement” would be “unsustainable” as this fails to meet rising costs and rising demand for services.

Resources spokeswoman Katie Hagmann said: “Across Scotland, councils are in an extremely challenging position, made worse by significant cuts to our core budget in recent years.

“This is putting unprecedented strain on our frontline essential services and local government is moving ever closer towards unsustainability.

“The reality of budget reductions in areas such as roads, planning, culture, and leisure are threatening councils’ ability to meet statutory obligations, including services such as housing and homelessness.

“The 2025-26 Budget must provide fair and flexible funding to allow local government to deliver our jointly agreed outcomes and address the multiple challenges we are facing.

“It is vital that the Scottish Government ensures that any additional revenue and capital funding, made available through the UK Budget, is passed on to councils.”

Her comments came as Cosla launched its Invest Locally for Scotland’s Future campaign, with president Shona Morrison warning the “great work” carried out by local government across the country is “increasingly at risk”.

Ms Morrison said: “Years of real-terms cuts and flat-cash settlements from Scottish Government, compounded by rising inflation and operational costs, mean that our councils are constantly required to do more with less.

“Our councils have done their very best to protect core statutory services, such as education and social care.

“However, as we can see with the ever-increasing number of housing emergencies announced across our communities, even these essential services are facing real strain.

“Our campaign, Invest Locally for Scotland’s Future, highlights the fantastic work being carried out across Scotland by councils and promotes a positive vision of how our services could look with sustainable funding.”

A Scottish Government spokesperson said: “We continue to assess 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.”