
Councils have been struggling to make ends meet for years now. Mostly this is down to a combination of ever increasing costs and lower than needed financial settlements from the Scottish Government. Council tax covers less than 20% of council financial needs with 75% to 80% from the Scottish Government and a small amount from charges and fees for council services.
The costs increases are often inflationary. They include electricity, fuel, insurance, vehicles, PPE and many other items and services that councils must purchase, in addition to cost of living pay increases. Demographic changes can also significantly affect costs as rising populations need more services (especially for groups such as school age and those whose health is impaired).
A further significant expenditure item for councils is the interest they have to pay on loans taken out in order to build schools, offices, community centres, care homes and the likes. These loans are usually made to councils by the Public Works Loans Board (an arm of the UK Treasury) and councils often pay 10% or more of their budgets, in interest alone, back to the UK Treasury.
Unite’s Fair Funding campaign is about ending the cutting of council services and jobs by pressing governments to properly support our councils to deliver the services needed by the public.
Find out more and add your weight to the campaign through the campaign page.


