Scotland’s councils to get extra £120m in funding, Forbes announces

Scotland’s 32 local authorities will be given an extra £120 million next year, Finance Secretary Kate Forbes has said.

The increase, which can be provided as a result of an increase to the current year’s Budget stemming from UK Government spending, equates to a 4% rise in council tax, according to Ms Forbes, and will be carried forward into the 2022-23 spending plans.

As a result of the funding, the Finance Secretary said there would be no need for “inflation-busting” council tax rises.

The draft budget set out in December removed the cap on council tax, leading to fears of a major increase, along with assertions by local government body Cosla that it was seeing a £371 million real-terms cut in funding.

Speaking during a debate on the first stage of the Budget Bill, Ms Forbes said: “Councils will have complete flexibility to allocate that funding as they wish next year and I intend to bring forward an amendment at stage two to deliver this.”

She added: “Councils asked for an additional £100 million to deal with particular pressures.

“We have heard them and listened and we are going to go further.

“That will allow them to deal with the most pressing issues they face and at a time when people are understandably worried about the cost of living.

“I would point out that this increase in funding would be equivalent to a 4% increase in council tax next year – so whilst councils have full flexibility in setting local council tax rates, I don’t believe there is a requirement for any inflation-busting increases next year.”

Ms Forbes went on to claim this year’s Budget was one of “hard choices”, adding: “But I believe we have made the right choices.”

Scottish Tory finance spokeswoman Liz Smith accused the Scottish Government of an “attack” on local government, adding: “What has been said by Cosla, by every council group leader – including the SNP’s own – and from various groups like care workers who are on the front line of delivering council services, they all see really big cuts coming.”

She continued: “This Budget does nothing to properly secure Scotland’s economic future, or to safeguard essential local services so we will oppose it at stage one.”