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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 22 September 2025
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Displaying 2390 contributions

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Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

Are you one of the two thirds of councils that will be dipping into some reserves, Martin?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

Good morning. I want to start by asking about the much-loved subject of ring fencing. Maybe someone will write a book about ring fencing one day, so that we can all understand it.

There are several figures going around. The commission thinks that 23 per cent of local government’s revenue funding is directed or ring fenced for our shared priorities. The Scottish Government thinks that that portion is about 7 per cent, but COSLA thinks that it is 60 per cent. How have each of the parties arrived at those figures? Will you explain, in particular, how the commission arrived at its figure of 23 per cent?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

We will come to those issues in a wee while. Thank you for answering those questions.

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

I can remember it, Martin. Thank you for that perspective. Kirsty, do you have anything to add?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

Are you happy with the funding formula that is in place?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

I would like your perspective on whether the funding formula is correct and appropriate or whether it needs to be adjusted. There is a huge amount of debate about that. We have figures that show that Aberdeen City Council and City of Edinburgh Council get the smallest settlements per head in Scotland. However, if we look at the real-terms changes to the revenue allocations, we see that Aberdeen council is at the top at 7.2 per cent. I think that the Scottish average is 3 per cent.

There is a whole set of variables in the funding formula. What is your perspective on it? Are you content with it? I suppose that the answer will be no, but does the formula need to be adjusted and is it a fair way to allocate resource to Scotland’s councils?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

I want to ask each of the three witnesses for their perspectives on the use of reserves. Earlier, Bill Moyes said that two thirds of councils are planning to deploy some element of their reserves to meet requirements for the year ahead. Will you each offer a perspective on what your council is doing, as well as giving a general perspective on how you see the whole position about reserves and how they should be used and deployed in local government?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

Thanks very much for that, everybody.

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

However, your estimate is nowhere near in the middle of the two. COSLA estimates that 60 per cent of funding is ring fenced. We can ask the next panel of witnesses, but do you have any idea why it thinks that the percentage is so high?

Local Government, Housing and Planning Committee

Local Government Fiscal Arrangements

Meeting date: 31 January 2023

Willie Coffey

Thanks very much for making that valiant attempt to explain the differences.

We can see from the report that budget gaps by council range from 1 per cent for Argyll and Bute Council to 22 per cent for Shetland Islands Council. Can you offer any views, Bill, on why such huge gaps exist between councils’ funding gaps?