Local Government Autonomy (Ring-fenced Funding)

– in the Scottish Parliament at on 2 May 2019.

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Photo of Brian Whittle Brian Whittle Conservative

1. To ask the Scottish Government what its position is on the impact on local authorities’ autonomy of increases in ring-fenced funding. (S5O-03170)

Photo of Aileen Campbell Aileen Campbell Scottish National Party

Local authorities have complete autonomy to allocate more than 92 per cent, or £10.3 billion, of the total funding that is provided by the Scottish Government, plus all their locally raised income. They can allocate that funding on the basis of local needs and priorities, having first fulfilled their statutory obligations and the jointly agreed set of national and local priorities.

It is important to note that ring-fenced funding is money for increased investment in services such as those in our schools, nurseries and town centres.

Photo of Brian Whittle Brian Whittle Conservative

Although the percentage of the budget that is ring fenced has gone up, core general revenue funding has gone down across the country. That has squeezed the budgets of councils that need that money to carry out their everyday services. Does the cabinet secretary recognise that reducing core funding has a negative impact on councils’ ability to provide and maintain sport and leisure facilities?

Photo of Aileen Campbell Aileen Campbell Scottish National Party

We have worked with local authorities and have increased the proportion of funding that they get. It is also important to recognise that we have worked hard to provide local authorities with a fair settlement. I remind Brian Whittle what the consequences might have been if we had followed his party’s tax plans. Potentially, there would have been £500 million less going to local authorities, which could have meant £14.9 million less for Dumfries and Galloway, £11.4 million less for East Ayrshire and £10.5 million less for South Ayrshire. I also remind him of what that would have meant for sport and leisure facilities.

We will continue to work with and support local authorities in the work that they do. My colleague, Joe FitzPatrick, will always prioritise ensuring that we get our nation active.

Photo of Richard Lyle Richard Lyle Scottish National Party

Can the cabinet secretary confirm that the overall additional funding in 2019-20 will amount to more than £600 million? Is it not the case that the 3.8 per cent real-terms increase in funding empowers local authorities to decide how to improve lives in local communities?

Photo of Aileen Campbell Aileen Campbell Scottish National Party

Absolutely. I confirm that, this year, taken together with council tax income, local authorities will have access to more than £600 million of additional total funding. That is real funding to deliver services that will benefit local communities the length and breadth of Scotland. The Scottish Government will continue to work with our partners in local government to make sure that we continue to provide a fair settlement, recognising the good work that our colleagues across local government do.

Photo of Alex Rowley Alex Rowley Labour

As the Convention of Scottish Local Authorities has pointed out time and again, £400 million of new commitments were built into the budget this year.

The Cabinet Secretary for Finance, Economy and Fair Work said that councils would have to deprioritise.

This morning, the

Dunfermline Press reported that Fife Council does not have the resources to properly look at standards in food premises.

Photo of Alex Rowley Alex Rowley Labour

The council said that cuts in staffing and budgets are responsible for that. Does the cabinet secretary accept that, in communities right across Scotland, services are being cut? Should we not be honest with the public?

The Deputy Presiding Officer:

Mr Rowley, that was a long supplementary question.

Photo of Aileen Campbell Aileen Campbell Scottish National Party

I will be honest and remind Alex Rowley that local authorities have the autonomy to allocate more than 92 per cent of the budget that the Scottish Government provides to them. I already confirmed to Richard Lyle that, this year, taken together with council tax income, local authorities will have access to more than £600 million of additional total funding.

We do not pretend that coping with the financial challenges that we face is not a challenge for everyone in public life. Nevertheless, as I outlined to Richard Lyle, we have provided a fair settlement and increased funding to local authorities. We will continue to work with local government to deliver on the shared outcomes and national priorities, and to enable them, as they set their budgets, to take the necessary action for their local priorities.