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Displaying 2547 contributions
Local Government, Housing and Planning Committee
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
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
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
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
Meeting date: 31 January 2023
Willie Coffey
Are you happy with the funding formula that is in place?
Local Government, Housing and Planning Committee
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
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?
Local Government, Housing and Planning Committee
Meeting date: 31 January 2023
Willie Coffey
That is helpful, Blyth.
You mentioned reserves, which brings me to my next question. The picture on reserves is varied. Bill Moyes, I think that you said that two thirds of councils plan to use reserves, which suggests that a third are not planning to use them. Is there guidance about the use of reserves and a reasonable level of deployment? Do councils broadly follow that advice and guidance? A third have decided not to deploy reserves and are perhaps looking to make cuts to bridge the gap.
09:45Local Government, Housing and Planning Committee
Meeting date: 31 January 2023
Willie Coffey
I imagine that there is guidance about it. I am sure that a council would not be legally permitted to deploy all its reserves in one year. Is there guidance on that? I presume that, by and large, councils follow such guidance.
Local Government, Housing and Planning Committee
Meeting date: 31 January 2023
Willie Coffey
Kirsty, do you want to come in on that?