16 October 2008
By David Scott in Edinburgh
The Scottish Government is coming under pressure to renegotiate the local government finance settlement because of concerns over the cost of free school meals and its council tax freeze policy.
Labour and Liberal Democrat members of the Convention of Scottish Local Authorities are concerned about the pressures councils face following a decision by ministers to provide free school meals to primary pupils aged between five and seven.
They also believe that ministers will need to provide a further £70m if they want to repeat the council tax freeze next year.
Cosla insisted that the concordat it signed with ministers last year is not under threat and that it is committed to operating the new school meals policy.
However, Labour and LibDem members, while accepting that the free school meals policy was included in the settlement, have warned that councils cannot guarantee the required funding.
Stephen Purcell, leader of Glasgow City Council, Scotland's biggest local authority, said councils were now under far greater strain, with inflation running at double last year's figures and other unexpected costs. 'The world has moved on considerably since the concordat was signed. Public services across the country are facing unprecedented pressure.'
A Scottish Government source said resources had been set aside to continue the council tax freeze next year.
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