19 December 2008
By David Scott
Scottish council leaders have warned that they face 'tough' spending decisions next year, despite a 5.1% funding increase announced by Finance Secretary John Swinney.
Local government representatives claimed that, while the £11.7bn funding package might appear generous, the increase would mainly be taken up by extra funding pressures now facing councils because of the recession and other factors.
Pat Watters, president of the Convention of Scottish Local Authorities, said: 'Last year's settlement was tight and next year's settlement will be just as tight.
'It is certainly not bonanza time. While there is no arguing that there is more actual money for next year, it is very much for specific purposes.'
Scotland's biggest council, Glasgow City, warned that the increase was not enough to help councils cope with the new economic climate.
The settlement, announced by Swinney in the Holyrood Parliament on December 11, includes a further £70m to enable Scotland's 32 councils to freeze council tax for a second year.
The minister said the £11.7bn for capital and revenue spending in 2009/10 would be £100m more than originally set aside in the three-year funding deal announced last year. It is a rise of more than 5% on the 2008/09 settlement.
The extra funding includes: £40m for free personal care; £42m for police and fire pensions; and £18m for teachers' pensions.
Swinney also announced that he was amending accounting rules to help councils with deposits in Icelandic banks.
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