Local Authorities (Balanced Budgets)

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

Alert me about debates like this

Photo of Stephen Kerr Stephen Kerr Conservative 3:03, 30 October 2024

To ask the Scottish Government what plans it has in place for local authorities that may be unable to fulfil any legal requirements for a balanced budget in the forthcoming financial year. (S6O-03854)

Photo of Shona Robison Shona Robison Scottish National Party

Scottish ministers remain committed to working with local government to ensure the sustainability of local services. However, local authorities have a statutory duty to set a balanced budget, and it is for locally elected representatives to decide how they do that.

Photo of Stephen Kerr Stephen Kerr Conservative

I was asking what the plans are in case that does not happen. What will the cabinet secretary do when a Scottish council cannot set a budget? Does she recognise the huge problems of health and social care overspends, wage bills, pensions and unfunded Scottish Government commitments? When will she come up with a long-term plan for local government to stop it teetering from crisis to crisis?

Photo of Shona Robison Shona Robison Scottish National Party

I am not sure whether Stephen Kerr got the memo that the Scottish Tories are now looking to reduce spend across public services. That was certainly the outline that was given by its new leader, Russell Findlay.

We take seriously our responsibilities to fund local government. That is why we have funded local government with £14 billion, which is a real-terms increase. That is not just according to us but according to the Scottish Accounts Commission and the Scottish Parliament information centre.

That does not take away from the enormous pressures that local government and other public services face, which is why, as part of the budget, we will discuss those matters with local government, as we are doing, to make sure that we can support it to reach a sustainable position. Of course, yesterday, I set out the Scottish Government’s plan to publish a sustainability delivery plan alongside the medium-tern financial strategy in the spring.

Photo of Michael Marra Michael Marra Labour

In evidence to the Finance and Public Administration Committee on 1 October, council leaders and directors of finance warned us that they are already at breaking point, with the delivery of statutory services under clear threat. Does the cabinet secretary not accept that it is her Government’s chaotic and incompetent approach to budgeting that has left council services on their knees?

Photo of Shona Robison Shona Robison Scottish National Party

No, I do not accept that, because the Accounts Commission and SPICe have both acknowledged and agreed with the Scottish Government that the local government settlement of £14 billion is a real-terms increase in funding, and, indeed, an increasing share of the Scottish Government’s discretionary spend. Despite all the financial challenges, local government has had a bigger share of the available pot.

That is not to say that I do not recognise some of the challenges that local government has. We are working closely with the Convention of Scottish Local Authorities, and we will continue to do so, as we work towards the budget on 4 December.