Local Government Finance Settlement (Discussions)

Portfolio Question Time – in the Scottish Parliament at 3:03 pm on 30 October 2024.

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Photo of Alex Rowley Alex Rowley Labour 3:03, 30 October 2024

To ask the Scottish Government what discussions it is having with the Convention of Scottish Local Authorities regarding the 2025-26 local government finance settlement. (S6O-03860)

Photo of Shona Robison Shona Robison Scottish National Party

As is the case in advance of every budget, we are having regular and routine engagement with COSLA and individual local authorities as we shape our proposals for 2025-26.

Photo of Alex Rowley Alex Rowley Labour

The cabinet secretary must be aware of the massive cuts that are being made in communities up and down Scotland. Proposals have been made to shut libraries in Perth and Kinross, and swimming pools, community centres and other community facilities are being affected. Youth services have been devastated and housing lists are growing. Does the cabinet secretary accept that, unless the Government gives a larger share of the cake to local councils, public services at community level will be devastated?

Photo of Shona Robison Shona Robison Scottish National Party

As I said earlier, we are giving councils a larger share of the cake of discretionary spend—that share has gone up by about 1 per cent.

However, I acknowledge the point that Alex Rowley makes. It is undoubtedly the case that there is pressure on public services, and local authorities are no different in that regard. We cannot have more than 10 years of austerity for that not to be the case. As we enter the budget process, I am more than happy to discuss with Alex Rowley his views and ideas on local government. If he would like to meet me to have such a discussion, I would be more than happy to do so.

Photo of Baroness Katy Clark Baroness Katy Clark Labour

Does the cabinet secretary expect that the 2025-26 settlement will reverse a decade of cuts and stop cuts such as those that are proposed in North Ayrshire, where the local authority proposes to remove 90 teaching jobs, to impose a charge of £50 for food waste collection and to reduce other bin collections from three-weekly to four-weekly?

Photo of Shona Robison Shona Robison Scottish National Party

As I said, there is pressure on all public services. Local government has an increased share of the overall discretionary spend, but I recognise the pressure on services. We will look at that, along with all the other priorities for the budget for 2025-26. We are having regular dialogue with COSLA and, indeed, individual local authorities, in the course of which many of those points are made. I am more than happy to discuss the matter with others across the Parliament. If Katy Clark wants to meet me, I extend to her the same offer that I extended to Alex Rowley.

Photo of Evelyn Tweed Evelyn Tweed Scottish National Party

Given the significant implications for the Scottish budget and the Scottish Government’s ability to provide a suitable settlement for local government, can I ask the cabinet secretary to give an initial reaction to the UK budget in relation to local government?

Photo of Shona Robison Shona Robison Scottish National Party

We are working through the detail of the budget. I recognise that it is very much a step in the right direction, particularly in relation to the capital availability for 2025-26. We need to work through the detail on issues such as the impact of national insurance employer contributions to the public purse. That will be one factor that we need to look at.

However, it is not possible to address more than a decade of austerity in one budget, so we need to see investment continue in order to repair the damage of years of austerity and the removal of £15 billion of resources from public services since 2021. That will take more than one budget to address, but we are pleased that our calls for investment in public services have been heeded. As I said, what we have seen today is a step in the right direction.

Photo of Alexander Stewart Alexander Stewart Conservative

Councils cannot be expected to deal with the implementation of policy when they are continually squeezed to breaking point while the costs of delivering statutory duties, such as those relating to social care, keep on rising. What steps is the Scottish Government taking to ensure that the forthcoming local government finance settlement provides the real-terms increase in discretionary spending powers that local authorities require?

Photo of Shona Robison Shona Robison Scottish National Party

As I said earlier, we will look at that and will talk to COSLA and local authorities and, indeed, individual members across the chamber about the local government settlement.

However, I think that Alexander Stewart has not got the memo from his leader, Russell Findlay, who has made it clear that spending on public services needs to be reduced in order to fund a reduction in taxes. It is not possible to increase funding on local government or anything else and to reduce taxes at the same time. That is simply not credible or economically literate.

We will continue to discuss such matters. I am more than happy to meet any member who wants to talk about the funding of local government as part of the budget discussions.

Photo of Annabelle Ewing Annabelle Ewing Scottish National Party

That concludes portfolio question time. There will be a short pause before we move on to the next item of business.