The Local Government Information Unit (LGIU) has today (27th November) published their State of Local Government Finance Scotland report.
The LGIU asked Scotland's Council Leaders, Chief Executives and Chief Finance Officers about their experiences trying to run councils in the last financial year, and their views on how councils’ financial sustainability could be assured.
The report highlights concerns COSLA has continually emphasised, most recently through our Invest Locally In Scotland's Future budget campaign.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented:
“The publication of today’s report by the LGIU highlights the sheer scale of the financial challenges facing our councils. The fact that 70% of councils in Scotland may be unable to balance budgets in the near future should serve as a warning to all. Additionally, it emphasises the need for the Scottish Government to provide Local Government with an increased funding settlement which is both fair and flexible in 2025/26.
"COSLA also welcomes the LGIU’s call for a whole system approach to Local Government finance. This echoes our asks in our ‘Invest Locally in Scotland’s Future’ budget lobbying campaign. Without a clear focus on prevention and upstream investment, along with local flexibility, our councils will be unable to tackle higher demand, in key areas such as homelessness prevention and social care.
"COSLA is calling for the Scottish Government to provide at least £14.5bn in revenue funding and £872m in capital funding in the 2025/26 Budget. Meeting this demand would not make up for the cuts councils have faced and felt by our communities in recent years, however it would be a positive step forward in providing fair and flexible funding to meet the challenges outlined in the LGIU report.”
Further Information
Read about Invest Locally In Scotland's Future, COSLA's budget campaign.