SNP warned Scottish council services 'facing decline' without budget cash boost

Scottish councils face having to make a further £529m of cuts next year unless more funding is handed over from SNP ministers in next month’s draft budget. The Scottish government has been warned Scots will have to “accept the decline” of local services without local authorities receiving £16.7 billion for day-to-day running costs next year - with a £953m inflationary uplift and a ring-fenced £750m for under-pressure social care services.

Councils are also calling for local authorities’ budget for capital projects to rise in line with inflation to £755m and the Scottish government’s affordable housing supply programme to be protected at £953m next year. The umbrella group for Scottish councils, Cosla, is calling on Deputy First Minister and Finance Secretary, Jenny Gilruth, to make more cash available to local authorities when she sets out her spending plans on December 3.

The appeal comes amid talks between John Swinney’s government and Scottish councils over plans to cut the number of local authorities in Scotland and potentially devolve powers alongside setting up dozens of community councils. But Cosla has warned that councils are facing a £529m funding gap in the 2026-27 financial year without further financial support - while authorities have been forced to shed around £5 billion in savings since 2010.

SNP ministers are now facing warnings that councils will be forced to make cuts to frontline services given the vast savings made over the last 15 years. The Accounts Commission has warned that council funding is failing to keep pace with rising costs and demand, while the Joseph Rowntree Foundation has highlighted the growing levels of poverty and hardship driving demand for local support. Cosla is arguing that communities need stronger local services at precisely the moment councils are under the greatest financial strain.

Cosla resources spokesperson, Kelly Parry, said: "There is little left to cut without communities feeling the impact. “Councils have already delivered billions in savings while continuing to provide the services people rely on every day. "Local services are the foundation of strong communities. If Scotland wants high-quality schools, social care, roads and local support services, councils must be given the resources to deliver them." She added: "The choice is clear: either we invest in local services or we accept their decline.

Communities across Scotland deserve better than that. "Cosla is calling for increased investment in local government, including support to meet growing social care demands, inflation-proofed funding, greater local flexibility and multi-year settlements that allow councils to plan effectively for the future. "Strong communities need strong councils. If Scotland wants high-quality local services, local government must be properly funded to deliver them."

Scottish Labour local government spokesperson, Carol Mochan, said: “For far too long, local government has been badly underfunded by the Scottish government. “This has led to vital services being cut and communities not being supported in the way that they deserve to be.” She added: “Warnings have been made for years about the consequences of not providing adequate funding for councils, but these have been ignored by SNP ministers. “The Finance Secretary must take heed of this latest warning by Cosla ahead of setting out her budget next month and ensure that crucial local services are protected.”

The Scottish government has been approached for comment.