Swinney defends council finance deal against job loss claims

11 Feb 10
Finance Secretary John Swinney has defended the Scottish Government’s finance deal for local authorities.
By David Scott

11 February 2010

Finance Secretary John Swinney has defended the Scottish Government’s finance deal for local authorities.

This was in response to claims by opposition MSPs and trade unions that it would lead to cuts of more than £300m and the loss of 3,000 jobs.
Swinney confirmed on February 10 that councils would share total revenue funding of almost £12bn. He was speaking at a debate on the 2010 local government finance order in Holyrood.

Swinney said ministers would fully fund a council tax freeze for the third successive year. He added that the finance order provided for an extra £76.9m for 2009/10 to allow councils to carry through a number of agreed commitments.

He also announced help for councils to finance a backlog of equal pay claims by allowing them to borrow more than £65m.

The finance secretary gave details of a £2.4bn rates relief package for businesses, arguing that at least half of all firms would be eligible for a discount on their bills.

Swinney insisted councils were receiving an increased share of the total Scottish budget.

He added: ‘This is the funding we have put in place to ensure local authorities are able to deliver the services that are expected by the communities of Scotland.’

Labour argued that the deal would mean cuts in services and job losses.

Local government spokesman Michael McMahon said: ‘In all authorities, the cuts will be deep and the impact on jobs and services will be severe.’

The public services union Unison this week predicted a loss of 3,000 jobs in local government. It claimed that social care and education would bear the brunt of the cuts.

Scottish organiser Dave Watson said: ‘This means you will find reduced numbers of classroom assistants and a reduction in the amount of support available in people’s homes.’

The order was approved by 106 votes to one, with 12 abstentions.

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