COSLA has today published an economy white paper, setting out the vital role of Local Government in driving sustainable growth, tackling inequality and supporting Scotland’s long term fiscal resilience.
Published as part of COSLA’s series of white papers ahead of the 2026 Scottish Parliament election, the paper highlights how councils are already crucial to Scotland’s economic success and, given more powers and flexibilities, could do even more to deliver employability services, Business Gateway, regeneration, fair work and place-based approaches to the economic development.
However, the paper warns that more than a decade of constrained, short term and increasingly ringfenced funding has weakened councils’ capacity to plan for major economic transitions. Services critical to inclusive growth, productivity and community resilience are under growing pressure, despite rising demand and policy expectations.
COSLA is calling on the next Scottish Government to re-empower local government as a strategic partner in Scotland’s economic renewal. The paper argues that stable, predictable and flexible funding is essential if local authorities are to support businesses, help people into fair work and shape resilient local economies.
With economic challenges, climate transition and fiscal pressures all intensifying, failure to invest in local economic development risks weaker growth and higher long-term costs to the public purse.
COSLA’s Environment and Economy Spokesperson, Cllr Gail Macgregor, commented:
“Local Government is already delivering for Scotland’s economy, but it is doing so within a funding system that is increasingly precarious and fragmented.
“This white paper makes a clear case for treating local economic development as a strategic investment.
“With the right powers, flexibility and resources, councils can help build a more resilient, inclusive and sustainable economy for communities across Scotland.”
Notes to editors
The white paper sets out clear priority actions, including:
- Certainty through long term, sustainable funding for local economic development and business support, including reinvestment in Business Gateway
- Clarity through better alignment of national policies with local delivery, and genuine co‑design of centrally funded programmes
- Flexibility to allow councils greater discretion to prioritise local economic needs and maximise place-based approaches
- Skills and capacity to retain experienced staff and support communities to capitalise on the opportunities of net zero and economic transition
Background
COSLA serves as the representative voice of Scottish Local Government. COSLA spokespersons do not operate on a party-political basis; instead, they represent the collective views of Scottish Local Government.
White Papers are designed to influence the thinking of all political parties in the lead-up to the Scottish Parliament election. They bring together previously agreed, cross-party COSLA policy positions on specific issues.
23rd April 2026
