Local government settlement:

Cuts this year but even more pain to follow next

by Chris Bartter

The spectacular U-turn of the Scottish Government in abandoning their plans to introduce a nationally-set income tax to fund part of local government has largely overshadowed reporting of funding for Scotland’s local councils.

However, the figures announced by Finance Minister, John Swinney - and many of the other serious economic factors - will in mean that many councils will be making cuts in jobs and services.

Not all councils will face major job cuts this year but many will and for following years the prospects are bleak. Despite claims by the Government of increasing cash for local government, this budget will inevitably mean staffing cuts and services to the public will be lost.

Council budgets are under pressure from the settlement for four reasons: A large chunk of the money from the Scottish Government has been ring-fenced to pay for the council tax freeze, and can’t be used to deliver services.

The budget deal with the Tories to cut business rates will mean less money.

Income to councils from sales and service charges is dropping due to the recession.

At the same time demand for public services from local councils is increasing due to that same recession.

Matt Smith, UNISON’s Scottish Secretary said: “We welcome John Swinney’s acceptance that there was neither Parliamentary support nor a viable financial basis for the SNP’s ‘Local’ Income Tax.

“It would have resulted in hundreds of millions of pounds lost to local councils with a disastrous effect on jobs and services.

“Unfortunately, he is still advocating a continued Council Tax freeze which will increasingly cause jobs and services to be cut back.

“A recession is the time to invest more money in local services, not cut them back. In addition to increasing demand as people turn to public services to help them cope with the recession, properly funded public services actually boost the economy.”

Campaign

UNISON is planning a campaign to promote local services and to ensure they are available for the increasing number of people who are likely to depend on them. A campaign pack has been handed out to branches and is on the website - www.unison-scotland.org.uk/localgovt and briefings on the budget have been circulated (on the web at www.unison-scotland.org.uk/briefings).

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