Council leaders in Scotland are demanding a fair share of the UK Budget boost to help local government cope with increasing financial pressures.
The call from the Convention of Scottish Local Authorities (Cosla) comes as local services face unprecedented strain due to rising demand and challenging financial conditions.
As Finance Secretary Shona Robison prepares to unveil the Scottish Budget next month, local government leaders have insisted there should be no repeat of the council tax freeze.
Cosla also warned that any cap on council tax rises should be avoided, emphasising that these decisions must remain under the control of local authorities, not ministers.
With Scotland set to receive an additional £3.4 billion in funding for 2025-26 following the UK Budget, Cosla is urging the Scottish Government to pass on a fair share of this extra funding to councils.
The body stresses that this boost is crucial to ensuring local investment in key sectors such as healthcare, education, and social care.
Local government bodies are facing a growing budget shortfall, with the Accounts Commission revealing that Scotland’s 32 councils are facing a collective deficit of £585 million this year.
This gap is expected to widen, reaching £780 million by 2026-27. Leaders are adamant that councils must receive sufficient funding to balance their budgets and continue providing essential services.
Cosla has warned that the Scottish Government’s “flat-cash settlement” approach, which has been in place for years, is no longer sustainable.
The body states that rising costs and increasing demand for local services have made it impossible to maintain existing funding levels. Katie Hagmann, Cosla’s resources spokeswoman, explained:
“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.”
This financial strain is already impacting crucial services, including housing, education, roads, and leisure. Cosla has highlighted that reduced funding is threatening councils’ ability to meet statutory obligations, particularly in areas like homelessness.
Hagmann continued: “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.”
In response to these challenges, Cosla has launched its Invest Locally for Scotland’s Future campaign. The initiative aims to showcase the positive impact local authorities are having across Scotland while advocating for sustainable funding.
Cosla president Shona Morrison warned that years of real-term funding cuts, combined with rising operational costs, have left councils struggling to meet demand while trying to protect core services.
Morrison said: “Councils are working hard to protect services like education and social care, but the housing crisis in our communities demonstrates that even these services are at risk. Our Invest Locally campaign highlights the fantastic work councils are doing and advocates for a sustainable funding model that can support the future of Scotland’s communities.”
A Scottish Government spokesperson responded: “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.”
The ongoing calls for fair and flexible funding reflect the growing urgency to ensure that local government can continue to deliver essential services to Scotland’s communities in the face of financial strain.
