Chamber and committees

More frequent and meaningful budget engagement with COSLA and Councils was fundamental to informing the record funding settlement made available to Local Government in the Scottish Budget 2025-26.

That engagement included consideration of financial viability, the importance of sustainable local services and the critical need for transformation.

The Local Government Settlement was significantly more generous than Councils were expecting based upon the trajectories set out in previous Medium Term Financial Strategies. Despite this, all local authorities, along with the rest of the public sector, are facing difficult decisions as part of their budget setting processes including on how to meet the increased costs of employer National Insurance Contributions following the UK Budget in November 2024.

Whilst no specific concerns over financial viability in 2025-26 or 2026-27 have been raised since the Scottish Budget was published, Scottish Ministers remain committed to deepening and broadening budget engagement to ensure the sustainability of local services in the long term.

The Scottish Government provided funding to Chest Heart and Stroke Scotland in 2018 to support a stroke awareness campaign. This was managed by Chest Heart and Stroke Scotland and delivered via NHS Boards. Scottish Government does not hold an evaluation of this campaign.

Chest Heart and Stroke Scotland launched a public FAST awareness campaign on 30 October 2024; World Stroke Day. Further information can be found at:

https://www.chss.org.uk/news/chest-heart-stroke-scotland-launches-new-f-a-s-t-campaign-to-improve-stroke-awareness/

The national action plan on relationships and behaviour published in August 2024. The first published progress report will publish in the coming weeks.

I refer the member to the answer to the question S6W-35046 on 5 March 2025. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

I refer the member to the answer to question S6W-35046 on 5 March 2025. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.

More frequent and meaningful budget engagement with COSLA and Councils was fundamental to informing the record funding settlement made available to Local Government in the Scottish Budget 2025-26. Scottish Ministers remain committed to deepening and broadening that partnership to ensure the sustainability of local services.

The needs-based formula used to distribute the funding available for local government is agreed with COSLA on behalf of all 32 local authorities each year. Scottish Ministers are open to exploring the funding formula through that meaningful engagement but any proposals for a formal review should properly come through COSLA in the first instance.

As part of the 2024-25 Scottish Budget, Scottish Government made available £144 million to councils who chose to maintain Council Tax liabilities at 2023-24 levels. This funding, equivalent to a 5 per cent increase nationally, ensured that councils agreeing to maintain rates were fully funded for that decision thereby protecting both local government budgets and household incomes.

Throughout engagement with COSLA, Councils and opposition parties ahead of the 2025-26 Scottish Budget, there was a clear consensus that Councils should have full flexibility for decisions on council tax rates. The Scottish Budget delivered that ask in full as part of a record Local Government Settlement worth over £15 billion including real terms protection of General Revenue Grant, another key ask of COSLA and opposition parties.

Decisions on Council Tax are therefore a matter for Local Authorities to take in consultation with local communities.

As councils apply that discretion and the impact on low and middle-income households becomes clearer, the most financially vulnerable will continue to be protected through the Council Tax Reduction (CTR) Scheme. The CTR scheme exists to ensure that nobody in Scotland should have to meet a council tax liability they cannot be expected to afford, and reduces a household’s liability based on an assessment of their income, capital, and other circumstances. Over 460,000 households receive some level of CTR, and on average recipients save over £850 a year.

The 2025-26 Scottish Budget will deliver record funding of over £15 billion for Local Authorities, a 4.7 per cent real terms increase, along with full discretion over Council Tax.

More frequent and meaningful budget engagement with COSLA and Councils was fundamental to informing the record funding settlement made available to Local Government in the Scottish Budget 2025-26.

Ultimately it is the responsibility of individual local authorities to manage their own budgets and to allocate the total financial resources available to them, on the basis of local needs and priorities but Scottish Ministers remain committed to ongoing meaningful engagement to ensure the sustainability of local services.

The average length of the local authority funding settlement since 2014-15 has been one year.

The opportunities of introducing three-year settlements are well understood but there are significant financial risks of doing so without the equivalent clarity from the UK Government given prominence of the adjusted block grant in the Scottish Government’s funding position. It is hoped that the conclusion of the UK Government’s Spending review later this year will create the foundations to allow the Scottish Government to adopt a multi-year approach to funding public services in Scotland. This will be taken forward through the next Scottish Spending Review.

While ring-fenced funding is provided to support increased investment in services such as our schools, inter-island connectivity and criminal justice social work, this represents only 2.7% or £0.4 billion of the overall Local Government Settlement in 2025-26.

Comparisons prior to the historic Concordat agreement in November 2007 do not represent a like for like comparison as Local Government funding changed significantly in 2008-09 when the majority of the former ring-fenced grants provided in the previous year were baselined into to the settlement.

Whilst not directly comparable, the best available data, as published in the Local Government Finance Circular 19/1998 indicates that specific grants worth £543 million were allocated to councils in 1999-00. This was equivalent to 8.29% of ‘Total Aggregate External Finance’.