02 July 2004
Scottish local authorities have called on ministers to agree to a budget of £9.3bn to fund basic services over the next year, according to proposals submitted in advance of the Spending Review.
The Convention of Scottish Local Authorities, the body that represents all but one of the 32 unitary councils, believes it will also need an extra £421m – on top of the base budget – to cover improvements and extra responsibilities in 2005/06.
In what it described as the most comprehensive expenditure analysis it had carried out, Cosla said it was the first time it had attempted to establish an agreed base budget – the cost of providing core council services.
In a detailed submission to ministers, Cosla welcomed the introduction of the three-year budgeting system in Scotland. But it argued that the uncertainty over what is included in the base budget and additional funding beyond the Executive's financial settlement made it difficult for councils to plan long-term investment. To fully fund all elements of the budget identified by Cosla and based on Executive figures, more than £9.3bn would be required, the submission states.
However, it also claims that an extra £421m is needed in 2005/06 to fund additional services in five key areas. These include education, cost of care, spend to save and community safety services and infrastructure. A further £549m is being sought for 2006/07 and £680m for 2007/08.
Cosla president Pat Watters said the extra funding proposed was not a wish list but a detailed and rational case for resources to fund new policy areas arising from the coalition Executive partnership agreement, specific pay and price issues and areas of significant underfunding from the previous spending review. He called on ministers to endorse Cosla's case for a base budget to fund existing services. Failure to continue to fund core services could mean cuts, Watters said.
Cosla's submission will be discussed with the Executive over the summer.
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