South Lanarkshire council leader Joe Fagan says there are “reasons to be optimistic” about the year ahead as the authority prepares to set its budget for 2025-26 – while encouraging residents to take part in the ongoing consultation on potential savings options.
The local authority is set to receive a total allocation of £805.8 million for the new financial year from the Scottish Government, an increase of £63.2m or 8.5 per cent from the previous 12 months.
Councillor Fagan says the total sum includes ring-fenced funds and therefore “the headline figures do not tell us what the real impact of the Scottish budget will be on local councils”, but says further updates for elected members are expected in committee papers this month.
He told residents in a new year video message: “There are grounds to believe that things will get better in 2025. Your council still has difficult budget decisions to make and we are looking for your help to make them through our budget consultation. The choices aren’t easy but might not be just as hard as in the recent past.
“The picture for public spending is improving across the UK. In Scotland, local government stood our ground and we think we are making progress in our efforts to secure fairer funding. I’d also argue that your council made some difficult but sensible decisions for the long term in years gone by, even when gripped by austerity.
“We’re not out of the woods yet; there’s a lot of work still to be done but there are reasons now to be optimistic for what 2025 will bring South Lanarkshire – a better future to hope for and to work for.”
The public consultation on budget savings, which has been in progress since before the council’s funding figure for the year ahead was confirmed following last month’s Holyrood budget, closes on January 17.
It seeks opinions on 24 savings options totalling £11.9m which councillors can consider, with the consultation site stating: “Due to ongoing financial challenges affecting all local authorities, we expect to have to bridge a budget gap of more than £77m in the next three years.”
South Lanarkshire is the fifth-largest council in Scotland and its budget allocation is behind only Glasgow, Edinburgh, Fife and neighbouring North Lanarkshire, whose settlement for the year will be £869.7m, up £56.3m since last year.
Councillor Fagan told Lanarkshire Live: “There is no doubt that the Chancellor’s autumn budget has ended austerity and delivered a major boost to the Scottish budget. The headline figures in the local government settlement conflate ringfenced and non-ringfenced spending [and] do not tell us what the real impact will be on local councils.
“This year, we certainly seem to be making progress. We were right to stand our ground and argue for a fairer share of Scottish public spending and to challenge Scottish Government funding myths. Core funding for councils has been under attack but this year we think things might actually be improving; we await a full analysis.
“Funding gaps faced by councils are huge and one decent budget will not turn everything around. However, for the first time in a long time, it feels like we are making progress. The devil is always in the detail and that’s why it’s important to work through detail before reaching any conclusions – whatever happens, my administration will continue to argue for the restoration of council budgets and an end to the chronic underfunding that has deprived South Lanarkshire of vital resources.”
The Scottish Government says the country’s 32 councils will “share a record funding settlement of more than £15 billion subject to passing of the 2025-26 budget”, including funding for “local needs, pay deals, a one-off payment of £40m to help councils respond to the climate emergency, and funding to support free personal care [and] teacher numbers”.
Finance secretary Shona Robison said: “The settlement is the result of meaningful budget engagement with [local government organisation] Cosla and councils. While council tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in council tax.
“Local authorities provide some of the most important services to our communities. This is a budget that will deliver increased funding for schools, social care and other vital council services, but this will only reach communities if the budget passes, so I am asking parliament to unite behind it.”
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