Swinney attacked for ‘draconian’ budget offer that councils can’t refuse

Finance secretary John Swinney’s attempt to finalise the Local Government Finance Settlement has been met with outrage by councils throughout Scotland as his proposals were branded “draconian”.

If accepted by Scotland’s 32 councils, Mr Swinney said the funding agreement would protect the council tax freeze, invest £250 million in social care and maintain the pupil-teacher ratio in Scotland’s schools.

The deputy first minister will now write to each of the council leaders with full details of the proposition, setting a deadline of February 2 to respond to the deal.

But, in a letter to local authorities’ umbrella body, Cosla, Mr Swinney said: “Any council that does not sign up to the complete package will not receive its share of the Integration Funding (£250m), support for teachers (£88m) and the council tax freeze support (£70m).

The move is likely to further heighten tensions between local and central government, and follows the announcement by Mr Swinney in his December Budget that councils would receive a combined cut to their budgets of £500m.

Following talks with council representatives, the deputy first minister said: “I am absolutely committed to continuing a positive, collaborative relationship with Scotland’s local authorities, and I have engaged in open discussions with Cosla on what is a challenging but fair settlement for local government in Scotland.

“This settlement is an opportunity to transform the provision of social care in Scotland with a £250m investment in integrating health and social care services – helping to make our services fit for the challenges of the 21st century.

“We recognise that there are pressures on budgets being felt across the whole of the public sector, as well as in households throughout Scotland. That’s why it is important to maintain the Council Tax freeze while we consider ways to replace it – as well as reimbursing local authorities to ensure they can continue to provide essential services.

“Contrary to what has been claimed, recent independent research suggested that the Scottish Government has over-funded the council tax freeze, and that between 2008-09 and 2013-14 councils received £164.9m more than they would have by simply increasing council tax by Retail Price Index.

“The funding proposals I have set out for local government will protect our shared priorities and deliver practical financial support to increase the pace of reform and improve public services – I would urge councils to take up this offer.”

However, Cosla said Mr Swinney had hit local government with a “draconian sanction”. The body’s leader, David O’Neill, said: “Make no mistake this is not a matter of choice for councils and this may be perceived as victory for Mr Swinney, but it is certainly not a victory for communities or democracy.”

One senior local government source said: “This is much more draconian than anything which has previously come from Swinney. No-one will reject this. No-one could afford to and the consequences would create local carnage.”