Hopes of a last-minute reprieve for hundreds of jobs in Argyll and Bute faded this week as Finance Secretary John Swinney stuck to his guns over the Council Tax freeze and cuts in grants to local authorities.
Argyll and Bute Council is expecting to cut £18m over the next two years – and council leaders say this is despite having already cut spending by £30m in recent years.
And COSLA, the umbrella group for councils in Scotland, said that relations between central and local government had ‘hit a new low’.
Mr Swinney held talks with leaders of councils about the Local Government Finance Settlement yesterday, afterwards saying priorities were to protect the Council Tax freeze, invest in social care and maintain pup-teacher ratios in schools.
Afterwards he said the deal offered was ‘challenging but fair’, adding: “We recognise that there are pressures on budgets being felt across the whole of the public sector, as well as in households throughout Scotland.
“That’s why it is important to maintain the Council Tax freeze while we consider ways to replace it – as well as reimbursing local authorities to ensure they can continue to provide essential services.
“Contrary to what has been claimed, recent independent research suggested that the Scottish Government has over-funded the council tax freeze, and that between 2008-09 and 2013-14 councils received £164.9m more than they would have by simply increasing council tax by Retail Price Index.”
Ellen Morton, depute leader of Argyll and Bute Council, said thousands of people had responded to the council’s consultation about service cuts, with opinion about I creasing the Council Tax being ‘very split.
“The issue of course is that any increase in Council Tax triggers a Scottish Government fine of over £1m,” she said.
“I do not think most people are aware of that.
“We are still working on the budget and I am very optimistic that we can mitigate the worst threats to jobs and services.
“The real issue for us is that with 23 islands – more than any other authority – we do not get the support for our islands that other island authorities get as we are not recognised by the Scottish Government as being an island council.”
Meanwhile COSLA president David O’Neill attacked Mr Swinney, saying: “Councils hearing that the date for Councils to accept the new deal via the media is simply unacceptable.
“COSLA’s political group leaders and I met with Mr Swinney yesterday and not once did he mention this date. Yet he can tell the press within 20 minutes of our meeting ending.
“That aside the fact that he has only given us an extra three days to accept the worst financial deal in over a decade simply demonstrates Mr Swinney’s misunderstanding of local councils processes – if a council has not met to set its budget already or does not have a council meeting scheduled for tomorrow or Monday, this extension is useless.
“Given Mr Swinney only furnished councils with the final proposals for the settlement today it is difficult to see how he expects any council to comply with this timescale?”
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