Technical Notes 2024, Issue 18 - 2024-25 Scottish Budget and Local Government Finance Settlement

At its meeting on 14 December 2023 East Dunbartonshire Council agreed the following:-

“That the Chief Executive would write to the First Minister, copying all MSPs who represent East Dunbartonshire, expressing the Council’s concern regarding the Council’s financial situation and unprecedented reduction in funding.”

A copy of the response from the Scottish Government’s Minister for Community Wealth and Public Finance is attached below for Members’ information.

Response from the Scottish Government’s Minister for Community Wealth and Public Finance

Our Reference: 202400391672
Your Reference: FW: [Official] : East Dunbartonshire Council - Letter to First Minister

29 January 2024

Dear Ms Davie,

Thank you for your letter of 19 December 2023, addressed to the First Minister, Humza Yousaf, on behalf of East Dunbartonshire Council, regarding the 2024-25 Scottish Budget and Local Government Finance Settlement. The First Minister has asked me to thank you for your correspondence and respond on his behalf as Public Finance falls within my remit.

Firstly, I can confirm that the Scottish Government recognises the financial challenges that the entire public sector are facing and that local authorities and their employees play a pivotal role in our communities. In the most challenging budget settlement, the 2024-25 Local Government settlement provides record funding of over £14 billion to local authorities, including £144 million of funding for the Council Tax Freeze, this represents an increase of £795.7 million, equivalent to a 6 per cent cash terms increase. The Local Government Settlements share of the discretionary Scottish Budget has also increased.

In 2024-25, East Dunbartonshire Council will receive £252 million to fund local services, which equates to an extra £21.3 million to support vital day to day services or an additional 9.2 per cent compared to the 2023-24 budget. In addition all Councils will receive their fair share of the currently undistributed sum of £365.3 million.

However, as independent corporate bodies it is for individual local authorities to decide how to manage their resources and it is for locally elected representatives to make local decisions on how best to deliver services to their local communities.

Turning now to the New Deal with Local Government, in the first budget since the Verity House Agreement was agreed, we have baselined almost £1 billion of funding across Health, Education, Justice, Net Zero and Social Justice, prior to agreement on an assurance and accountability framework. The Scottish Government will continue to review ring-fenced funding and would welcome constructive engagement from Local Government in that process, to ensure that the removal of ring-fencing goes hand-in-hand with our shared priorities and outcomes whilst ensuring maximum value for money. We will also continue to work with COSLA to empower Councils through a new fiscal framework and increasing discretion to determine and set fees and charges locally, in the coming year, this will include joint work on building warrant fees and planning fees.

Finally, I can confirm that the Scottish Government will continue to press the UK Government for urgent additional funding for our joint priorities and would welcome support from COSLA and individual local authorities in this respect.

Yours sincerely


TOM ARTHUR
MSP/BPA

Minister for Community Wealth and Public Finance
Ministear airson Beartas Coimhearsnachd is Ionmhas Poblach