Local Government, Housing and Planning Committee
Verity House Agreement and New Deal with Local Government
The Verity House Agreement is a partnership agreement between the Convention of Scottish Local Authorities (COSLA) and the Scottish Government “setting out our vision for a more collaborative approach to delivering our shared priorities for the people of Scotland.” It was published on 30 June 2023 and forms the first part of the new deal with local government.
The agreement can be found on the Scottish Government website.
Read the New Deal with Local Government – Verity House Agreement
Under the Verity House Agreement, COSLA and the Scottish Government have agreed three shared priorities—
• tackling poverty;
• just transition to net zero; and
• sustainable public services
The Scottish Government committed to completing certain strands of work by the end of September 2023 and the Deputy First Minister wrote to the Committee on 3 October 2023 to update it as follows—
Improved engagement on budgetary matters:
- Pre-budget engagement, at both official and political level, is well underway, and will continue, in preparation for the Scottish Budget in December.
A Fiscal Framework between local and national government, of which regular budget engagement will be a key part:
- Constructive further discussions took place in July and August, with options for different approaches being considered by COSLA, including at the COSLA Convention on 29 September.
- Further work is expected up to the Scottish Budget with a view to reaching agreement as soon as possible.
A shared programme of activity underneath each of the three priorities:
- This will focus on the period between now and the next Scottish Council Elections in 2027.
- Wide-ranging and constructive discussions have taken place between local and national government officials throughout August and are continuing to be taken forward in key areas by policy leads.
- Early conversations have taken place with Audit Scotland and the Accounts Commission Scotland to explore their role in this work.
Further work is expected over the coming months to deliver a robust shared programme with an outcomes and accountability framework as soon as possible.
The Minister for Local Government Empowerment and Planning confirmed in oral evidence in September 2023 that the outcomes and accountability framework would be published by February 2024.
The Committee expects to consider the Fiscal Framework, the outcomes and accountability framework, and other related areas of work in due course.
Further information, including links to relevant meeting papers and correspondence can be found below.
Background
In December 2017, the Scottish Government and COSLA jointly launched the Local Governance Review and following a consultation in 2018, identified areas for the improvement.
Work on the Review was then paused due to COVID-19.
In May 2022, the Scottish Government confirmed that it would “work closely with COSLA and the Society of Local Authority Chief Executives (SOLACE) over the coming months to agree a new deal for Local Government in Scotland in advance of the next financial year.” Further information can be found in the Resource Spending Review.
Read the Resource Spending Review
The Scottish Government then wrote to the Committee in November 2022 stating that the New Deal for local government would include—
- A Partnership Agreement which provides the framework for policy specific agreements, based on a shared value-based overarching agreement on outcomes and accountability.
- A Fiscal Framework for local government, which is intended to establish agreed ways of working in the fiscal relationship, supporting greater transparency and accountability.
- It also encompasses the Local Governance Review and a commitment to establish a working group to explore effective deliberative engagement on local government funding sources, including Council Tax.
In May 2023, the Committee jointly hosted an event with the Scottish Parliament’s think-tank, Scotland’s Futures Forum, to further consider the future relationship between central and local government in Scotland.
This conference brought together MSPs and a range of stakeholders from central and local government, academia, and the public, private and third sectors to explore what is required to improve the relationship between local and central government.
The Report of the event can be accessed using the following link:
Central and Local Government: Building for the Future - Event Report
SPICe Briefing
In summer 2022, the Committee asked SPICe researchers to provide a briefing on “Comparative research on local government and fiscal autonomy across Europe.”
You can read the briefing (941KB, pdf) posted 24 March 2023
Meetings
The Committee has held a number of evidence sessions on this topic. You can read the meeting papers and official reports via the links below:
2 November 2021, community groups, COSLA and the Deputy First Minister
13 December 2022, Council Leaders, COSLA and SOLACE
17 January 2023, Cabinet Secretary for Social Justice, Housing and Local Government
31 January 2023, Accounts Commission, Audit Scotland, local government Directors of Finance – focus on fiscal arrangements
5 September 2023, Minister for Local Government Empowerment and Planning and COSLA
Committee visits
The Committee is visiting a range of local authorities to hear their views.
In June 2023 the Committee visited Orkney Islands Council.
You can read a summary of the visit (108KB, pdf) posted 31 October 2023
In October 2023 the Committee visited Highland Council.
You can read a summary of the visit (208KB, pdf) posted 03 November 2023
In November 2023 the Committee visited Cumbrae, North Ayrshire.
You can read a summary of the visit (114KB, pdf) posted 19 December 2023