National and Devolved Politics

13.12.18

Core council spending ‘taken a hit’ from ‘smoke and mirrors’ Scottish Budget, but Brexit may force changes

Finance secretary Derek Mackay has unveiled a series of cash injections for Scotland’s public services, with preparations for Brexit at the heart of the government’s spending plans.

Mackay yesterday revealed the Budget proposals to MSPs, which includes an increase of £730m in health and care services (which he claims equates to £500m in real terms), £180m for raising attainment in schools, and £5bn of capital investment to modernise infrastructure.

There was also a real-terms increase in financial support for local government through a £11.1bn settlement, after councils issued a budget warning to the Scottish Government last month saying they had “no options left.”

However, the budget was met by disappointment by the Convention of Scottish Local Authorities (COSLA), which said the value of essential service provided by local government “has not been recognised by the Scottish Government.”

COSLA’s resources spokesperson, Cllr Gail Macgregor, explained: “There is always smoke and mirrors around how those at the centre present their budget. The one message that the Scottish people need to take from today’s budget is that the local government’s core budget which provides our essential services has taken a hit.

“The essential services that local government deliver are the foundations on which Scotland is built – today’s announcement means that these foundations are under severe pressure.”

Also announced in the Budget was a public-sector pay deal that provides an above-inflation uplift of 3% for those earning up to £36,500, a direct investment of £27m for mental health, £500m for early learning and childcare (including the refurbishment and extensions of 750 nurseries and family centres), and £825m towards the delivery of 50,000 affordable homes.

However, the Public and Commercial Services (PCS) union criticised the public sector pay deal as being below inflation. PCS national officer Lynn Henderson said: “Three per cent this year just isn’t good enough, it’s below inflation and therefore, it’s a pay cut.”

Regarding the uncertainties surrounding Brexit, Mackay said the spending plans “include a commitment to mitigate the risks of Brexit as best we can, to enable our economy to thrive in any circumstances, now and in the future.”

He noted that if Brexit can be avoided, the resources currently being directed towards “essential preparations” can be reinvested into public services, adding that he “may be required to revisit the priorities” of the Budget if there is a no deal Brexit.

Top image: Jane Barlow via PA Images 

 

Enjoying PSE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

latest public sector news

Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower e... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. ... more >
Colleges set to receive £200m in Funding

19/08/2020Colleges set to receive £200m in Funding

Over 180 colleges are set to receive a share of £200m, in order to repair and refurbish buildings and campuses. The funding makes up p... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >
Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower emissions during the lockdown period. The coun... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. Between April 2019 and March 2020, London boroug... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PSE were looking at innovative ways to deliver its content to our audience in a more dynamic and responsive manner. We’re conscious to take the time to both prot... more >
read more blog posts from 'the raven' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

public sector focus

View all News