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MSPs approve council spending plans

Feb 7 2013

 

MSPs have rubber-stamped the Scottish Government's spending plans for local authorities.

The share of money was endorsed in a 72-36 vote one day after the overall Budget for Scotland was passed at Holyrood.

Finance Secretary John Swinney said: "In these very difficult economic times we have worked constructively with our local government partners to agree an overall funding settlement and package of measures to help sustain and develop the services on which the people of Scotland depend wherever they live."

The share of cash among all 32 councils was set out provisionally last year. Councils were told they will receive about £10 billion in 2013-14, including cash from non-domestic rates. Authorities had to agree to continue key government policies, such as the council tax freeze, to get some of the funding.

Changes in the way the money is allocated this year include the impact of police and fire brigade mergers, which led to the removal of more than £1.2 billion from local government funding.

But Labour MSP Sarah Boyack criticised the SNP administration's spending plans. "These are indeed tough times for local government and this order shows you can't trust the SNP to protect local services," she said. "As ever, the Cabinet secretary is pretending this is a good deal for local government and will protect local services. We all know that's a complete fiction."

Conservative MSP Margaret Mitchell said funding is "substantially lower" than had been originally proposed. This could in part be explained by the transfer of responsibility for policing and the fire service from local government to the new Scottish Police Authority and the new Scottish Fire and Rescue Service, she said.

Before the change, local councils had provided funding to Scotland's eight police and fire services.

Ms Mitchell said: "Excluding the police and fire monies, which allows us to make like-for-like comparison, local authorities in Scotland over the next financial year will see a 1.8% decrease in real terms. Clearly this is going to be a difficult time for local authorities."

Liberal Democrat leader Willie Rennie said: "This from a Government that says it has got a respect agenda with local government. To strip out £1.2 billion from their control I think shows a certain degree of disrespect, not respect." He claimed this marked "one of the biggest transfers of fiscal power from local government to central government probably since around about the poll tax time".

 

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