22 March 2002
The committee recommended that the change be made 'at the earliest opportunity' to enable councils to be funded 50% centrally and 50% locally. Currently the split in Scotland is 80/20 in favour of central government funding.
'This committee believes that the present high level of central funding is incompatible with strong local government because it blurs local accountability and it means that councils, and the council tax, are vulnerable to changes in the grant distribution,' said Trish Godman, the convener of the committee.
The Scottish Executive will now be under strong pressure to bring forward legislation to implement the recommendations. If it does not, the committee has the power to introduce legislation itself.
Ian Doig, director of CIPFA in Scotland, welcomed the report. 'We have long been concerned about the gradual erosion of financial autonomy for local government,' he said.
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