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Daily Record
22-05-2025
- Business
- Daily Record
Warning West Lothian Council's £35m budget black hole is 'unsustainable'
The Accounts Commission said watchdogs are warning local authorities will face 'difficult decisions on what services can be delivered' after reports Scottish council's face a near £1 billion black hole in the next two years. West Lothian Council's finance chief has warned the funding crisis facing the local authority is 'of a magnitude never experienced before.' The Accounts Commission said watchdogs are warning local authorities will face 'difficult decisions on what services can be delivered' after reports Scottish council's face a near £1 billion black hole in the next two years. In West Lothian the budget gap is reportedly £35m - and the council leader said the situation is 'unsustainable' West Lothian has had to cut more than £200m from its budgets since 2007. The Accounts Commission said for this year, the budget gap between the country's 32 local authorities stands at £647 million - up £52 million from 2024-25. This comes despite councils receiving £15.2 billion from the Scottish Government in the budget for 2025-26 - with the amount of cash rising by 6% in real-terms. The Accounts Commission said: 'Councils are currently anticipating a cumulative revenue budget gap of £997 million over the next two years.' The hike in employers' national insurance contributions is also impacting councils, with local government body Cosla saying this could cost £370 million a year - more than double the £144 million provided by the Scottish Government towards the rise. Council leader Lawrence Fitzpatrick said: 'Due to insufficient funding from the Scottish Government the council has a budget gap of £35 million over the next three years, with us having to make nearly £12 million of savings this year alone. 'By 2028 the West Lothian Council will have had to make budget savings of over £207 million.' 'These are the stark facts and the pain is felt across all Scottish councils. 'The gap between what funding we receive and what services we are expected to deliver is significant and it is an unsustainable situation. 'The growing demand for service set against a backdrop of insufficient levels of funding means we are at breaking point. Councils are in an impossible situation in terms of what is expected of us and the services we provide, and our ability to provide them.' Kenneth Ribbons, West Lothian's Interim Head of Finance and Property Services said: 'The continuing financial crisis facing local government is of a magnitude never experienced before. 'Increases in Scottish Government funding fall well short of the funding required to stabilise finances as is the case with all Scottish Local Authorities. That is clearly highlighted by the Accounts Commission. 'The scale of the financial challenges are of such a level that this additional funding does not fully address the substantial and ever increasing cost of delivering services to our local communities. This is particularly the case in relation to delivering health and social care services. 'COSLA has emphasised that the additional funding only provides a real terms protection and is not an increase that will reverse the impact of many years of budget reductions and flat cash settlements.' Councils across Scotland increased council tax for 2025-26 to help with their finances - with rises ranging from 6% in South Lanarkshire to 15.6% in Falkirk. In West Lothian Council Tax rose to 8.95% However the Accounts Commission said higher bills for local people means 'there is greater expectation on the performance of local services'. Accounts Commission member Derek Yule warned of a 'growing expectation gap' for authorities. He said: 'Councils don't have enough money to meet current demand, at a time when local communities are being asked to contribute more through increases in council tax and charges for some services.' As a result, Mr Yule said 'councils need to provide clearer budget information and work with communities to determine how services will be delivered in the future' - although he added 'these conversations won't be easy'. Mr Yule also warned: 'With public finances tightening, however, not all cost increases faced by councils can be met by Government funding. 'Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered.' The report also told how councils are due to make 'around £210 million of approved savings' in 2025-26, with this including £68 million of savings from corporate services and £58 million from children's services. Cosla resources spokesperson Councillor Katie Hagmann said the report was 'further evidence of the financial constraint under which councils are operating'. Ms Hagmann said: 'Despite an improved settlement for 2025-26, the stark reality is that local authorities continue to face persistent financial pressures that far outstrip the resources available to them. 'Rising inflation, increased costs resulting from higher employer national insurance contributions and pay, and ever-growing demand on vital services like social care are pushing local budgets to the breaking point. 'Councils have worked tirelessly to protect the services that matter most - such as schools, roads, housing, and supports for vulnerable people, to name but a few - yet the gap between what is needed and what is available continues to widen. 'Years of these mounting pressures have left councils with no alternative but to make extremely difficult decisions to close this year's budget gap of around £647 million.' Politicians of all stripes turned their fire on the SNP government in Holyrood following the Accounts Commission findings. The Scottish Government responded to criticism. A spokesperson said: 'This report confirms that the Scottish Government provided a real-terms increase in funding for local government in 2025-26, building on continued increases in recent years. 'The Scottish Government will continue to work in partnership with local government to address the challenges facing council budgets and ensure we are operating sustainable people centred public services that communities expect and deserve.'
Edinburgh Reporter
22-05-2025
- Business
- Edinburgh Reporter
Stark warning on budget deficit for West Lothian
West Lothian Council's finance chief has warned the funding crisis facing the local authority is 'of a magnitude never experienced before.' The Accounts Commission today said watchdogs are warning local authorities will face 'difficult decisions on what services can be delivered' after reports Scottish council's face a near £1 billion black hole in the next two years. In West Lothian the budget gap is reportedly £35m – and the council leader said the situation is 'unsustainable' West Lothian has had to cut more than £200m from its budgets since 2007. The Accounts Commission said for this year, the budget gap between the country's 32 local authorities stands at £647 million – up £52 million from 2024-25. This comes despite councils receiving £15.2 billion from the Scottish Government in the budget for 2025-26 – with the amount of cash rising by 6% in real-terms. The Accounts Commission said: 'Councils are currently anticipating a cumulative revenue budget gap of £997 million over the next two years.' The hike in employers' national insurance contributions is also impacting councils, with local government body Cosla saying this could cost £370 million a year – more than double the £144 million provided by the Scottish Government towards the rise. Council leader Lawrence Fitzpatrick said: 'Due to insufficient funding from the Scottish Government the council has a budget gap of £35 million over the next three years, with us having to make nearly £12 million of savings this year alone. 'By 2028 the West Lothian Council will have had to make budget savings of over £207 million.' 'These are the stark facts, and the pain is felt across all Scottish councils. 'The gap between what funding we receive and what services we are expected to deliver is significant and it is an unsustainable situation. 'The growing demand for service set against a backdrop of insufficient levels of funding means we are at breaking point. Councils are in an impossible situation in terms of what is expected of us and the services we provide, and our ability to provide them.' Kenneth Ribbons, West Lothian's Interim Head of Finance and Property Services said:' The continuing financial crisis facing local government is of a magnitude never experienced before. 'Increases in Scottish Government funding fall well short of the funding required to stabilise finances as is the case with all Scottish Local Authorities. That is clearly highlighted by the Accounts Commission. 'The scale of the financial challenges are of such a level that this additional funding does not fully address the substantial and ever-increasing cost of delivering services to our local communities. This is particularly the case in relation to delivering health and social care services. 'COSLA has emphasised that the additional funding only provides a real terms protection and is not an increase that will reverse the impact of many years of budget reductions and flat cash settlements.' Councils across Scotland increased council tax for 2025-26 to help with their finances – with rises ranging from 6% in South Lanarkshire to 15.6% in Falkirk. In West Lothian Council Tax rose to 8.95% However, the Accounts Commission said higher bills for local people means 'there is greater expectation on the performance of local services'. Accounts Commission member Derek Yule warned of a 'growing expectation gap' for authorities. He said: 'Councils don't have enough money to meet current demand, at a time when local communities are being asked to contribute more through increases in council tax and charges for some services.' As a result, Mr Yule said 'councils need to provide clearer budget information and work with communities to determine how services will be delivered in the future' – although he added 'these conversations won't be easy'. Mr Yule also warned: 'With public finances tightening, however, not all cost increases faced by councils can be met by Government funding. 'Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered.' The report also told how councils are due to make 'around £210 million of approved savings' in 2025-26, with this including £68 million of savings from corporate services and £58 million from children's services. Cosla resources spokesperson Councillor Katie Hagmann said the report was 'further evidence of the financial constraint under which councils are operating'. Ms Hagmann said: 'Despite an improved settlement for 2025-26, the stark reality is that local authorities continue to face persistent financial pressures that far outstrip the resources available to them. 'Rising inflation, increased costs resulting from higher employer national insurance contributions and pay, and ever-growing demand on vital services like social care are pushing local budgets to the breaking point. 'Councils have worked tirelessly to protect the services that matter most – such as schools, roads, housing, and supports for vulnerable people, to name but a few – yet the gap between what is needed and what is available continues to widen. 'Years of these mounting pressures have left councils with no alternative but to make extremely difficult decisions to close this year's budget gap of around £647 million.' Politicians of all stripes turned their fire on the SNP government in Holyrood following the Accounts Commission findings. The Scottish Government responded to criticism. A spokesperson said: 'This report confirms that the Scottish Government provided a real-terms increase in funding for local government in 2025-26, building on continued increases in recent years. 'The Scottish Government will continue to work in partnership with local government to address the challenges facing council budgets and ensure we are operating sustainable people centred public services that communities expect and deserve.' By Stuart Sommerville, Local Democracy Reporter Like this: Like Related
Edinburgh Live
22-05-2025
- Business
- Edinburgh Live
Warning West Lothian council's £35m budget black hole is 'unsustainable'
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info West Lothian Council's finance chief has warned the funding crisis facing the local authority is 'of a magnitude never experienced before.' The Accounts Commission today said watchdogs are warning local authorities will face 'difficult decisions on what services can be delivered' after reports Scottish council's face a near £1 billion black hole in the next two years. In West Lothian the budget gap is reportedly £35m - and the council leader said the situation is 'unsustainable'. West Lothian has had to cut more than £200m from its budgets since 2007. The Accounts Commission said for this year, the budget gap between the country's 32 local authorities stands at £647 million – up £52 million from 2024-25. This comes despite councils receiving £15.2 billion from the Scottish Government in the budget for 2025-26 – with the amount of cash rising by 6% in real-terms. The Accounts Commission said: 'Councils are currently anticipating a cumulative revenue budget gap of £997 million over the next two years.' The hike in employers' national insurance contributions is also impacting councils, with local government body Cosla saying this could cost £370 million a year – more than double the £144 million provided by the Scottish Government towards the rise. Council leader Lawrence Fitzpatrick said: 'Due to insufficient funding from the Scottish Government the council has a budget gap of £35 million over the next three years, with us having to make nearly £12 million of savings this year alone. "By 2028 the West Lothian Council will have had to make budget savings of over £207 million.' 'These are the stark facts and the pain is felt across all Scottish councils. 'The gap between what funding we receive and what services we are expected to deliver is significant and it is an unsustainable situation. 'The growing demand for service set against a backdrop of insufficient levels of funding means we are at breaking point. Councils are in an impossible situation in terms of what is expected of us and the services we provide, and our ability to provide them.' Kenneth Ribbons, West Lothian's Interim Head of Finance and Property Services said: 'The continuing financial crisis facing local government is of a magnitude never experienced before. "Increases in Scottish Government funding fall well short of the funding required to stabilise finances as is the case with all Scottish Local Authorities. That is clearly highlighted by the Accounts Commission. 'The scale of the financial challenges are of such a level that this additional funding does not fully address the substantial and ever increasing cost of delivering services to our local communities. This is particularly the case in relation to delivering health and social care services. "COSLA has emphasised that the additional funding only provides a real terms protection and is not an increase that will reverse the impact of many years of budget reductions and flat cash settlements.' Councils across Scotland increased council tax for 2025-26 to help with their finances – with rises ranging from 6% in South Lanarkshire to 15.6% in Falkirk. In West Lothian Council Tax rose to 8.95% However the Accounts Commission said higher bills for local people means 'there is greater expectation on the performance of local services'. Accounts Commission member Derek Yule warned of a 'growing expectation gap' for authorities. He said: 'Councils don't have enough money to meet current demand, at a time when local communities are being asked to contribute more through increases in council tax and charges for some services.' As a result, Mr Yule said 'councils need to provide clearer budget information and work with communities to determine how services will be delivered in the future' – although he added 'these conversations won't be easy'. Mr Yule also warned: 'With public finances tightening, however, not all cost increases faced by councils can be met by Government funding. 'Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered.' The report also told how councils are due to make 'around £210 million of approved savings' in 2025-26, with this including £68 million of savings from corporate services and £58 million from children's services. Cosla resources spokesperson Councillor Katie Hagmann said the report was 'further evidence of the financial constraint under which councils are operating'. Ms Hagmann said: 'Despite an improved settlement for 2025-26, the stark reality is that local authorities continue to face persistent financial pressures that far outstrip the resources available to them. 'Rising inflation, increased costs resulting from higher employer national insurance contributions and pay, and ever-growing demand on vital services like social care are pushing local budgets to the breaking point. 'Councils have worked tirelessly to protect the services that matter most – such as schools, roads, housing, and supports for vulnerable people, to name but a few – yet the gap between what is needed and what is available continues to widen. 'Years of these mounting pressures have left councils with no alternative but to make extremely difficult decisions to close this year's budget gap of around £647 million.' Politicians of all stripes turned their fire on the SNP government in Holyrood following the Accounts Commission findings. The Scottish Government responded to criticism. A spokesperson said: 'This report confirms that the Scottish Government provided a real-terms increase in funding for local government in 2025-26, building on continued increases in recent years. 'The Scottish Government will continue to work in partnership with local government to address the challenges facing council budgets and ensure we are operating sustainable people centred public services that communities expect and deserve.'
Daily Record
30-04-2025
- Business
- Daily Record
West Lothian Council warning over cost of meeting National Insurance increase
West Lothian Council may yet have to find millions to meet the increase in National Insurance Contributions introduced last month, it has emerged. An update on the Chancellor's Spring Statement and its effects on West Lothian's finances delivered to councillors at the Executive suggested some of the cost would be met but there was no clarity as to how much. And while certainties were in short supply there was no shortage of political flak around the chamber. Asked directly political questions by Conservative and SNP group leaders, Finance director Kenneth Ribbons referred them to his report. Damian Doran-Timson, the Conservative group leader pointed to jobs lost, higher prices and an economy in free-fall. The SNP leader, Janet Campbell criticised Westminster's refusal to pay the shortfall to the Scottish Government to meet the NIC costs. There was dispute over how much the Westminster government was prepared tp ut in to save Grangemouth compared with the money to spent at Scunthorpe to save the steel mill and likewise at Port Talbot in Wales. Labour's Tom Conn pointed to the economy the Labour government had inherited from the Tories and suggested that the SNP refused to take difficult decisions. It outlined the situation on the potential NIC shortfall. Mr Ribbons said that the Treasury confirmed to the Scottish Government the compensation that would be provided to cover the extra cost of the Employer NICS tax increase for public sector workers. However he indicated that doubts on how much remain. The report added: 'The Finance Secretary, Shona Robison has stated that the Scottish Government would be receiving 'a little more than £300 million', and that the shortfall between the funding and the cost would need to be found 'within public service budgets'. 'The Fraser of Allander [Institute], in an article published on 28 March 2025, stated that the exact amount of compensation hasn't been published anywhere but they believe it to be in the region of £330 million. 'In an article published following the autumn budget, the Fraser of Allander estimated the cost to the devolved public sector for the employer NICS tax increase to be around £507 million, slightly lower than the Scottish Government estimate of £550 million (or £700-800 million if the increased cost of delivering contracted out services is included).' Mr Ribbons added: ' Whatever figure is correct, the compensation received will not cover the full cost and the Scottish Government have not set aside any money in contingency for this scenario. This will put even more pressure on future settlements from the Scottish Government, especially for unprotected services.' He concluded: 'The Spring Statement does not have an immediate impact on the level of funding confirmed for West Lothian Council. 'In line with other local authorities, the council continues to face substantial budget challenges. A budget gap of £9.7 million remained for 2026/27 and 2027/28. 'The UK economy's performance has deteriorated compared to the OBR's October forecast. This along with global uncertainty with regards to trade tariffs, inflation, interest rates and political conflicts means that it remains a challenging position for the UK economy and public sector spending.'
Edinburgh Reporter
29-04-2025
- Business
- Edinburgh Reporter
West Lothian Council may have to find millions to meet increase in NI contributions
West Lothian may yet have to find millions to meet the increase in National Insurance Contributions introduced last month, it has emerged. An update on the Chancellor's Spring Statement and its effects on West Lothian's finances delivered to councillors at the Executive suggested some of the cost would be met but there was no clarity as to how much. And while certainties were in short supply there was no shortage of political flak around the chamber. Asked directly political questions by Conservative and SNP group leaders, Finance director Kenneth Ribbons referred them to his report. Damian Doran-Timson, the Conservative group leader pointed to jobs lost, higher prices and an economy in free-fall. The SNP leader, Janet Campbell criticised Westminster's refusal to pay the shortfall to the Scottish Government to meet the NIC costs. There was dispute over how much the Westminster government was prepared tp ut in to save Grangemouth compared with the money to spent at Scunthorpe to save the steel mill and likewise at Port Talbot in Wales. Labour's Tom Conn pointed to the economy the Labour government had inherited from the Tories and suggested that the SNP refused to take difficult decisions. It outlined the situation on the potential NIC shortfall. Mr Ribbons said that the Treasury confirmed to the Scottish Government the compensation that would be provided to cover the extra cost of the Employer NICS tax increase for public sector workers. However, he indicated that doubts on how much remain. The report added: 'The Finance Secretary, Shona Robison has stated that the Scottish Government would be receiving 'a little more than £300 million', and that the shortfall between the funding and the cost would need to be found 'within public service budgets'. 'The Fraser of Allander [Institute], in an article published on 28 March 2025, stated that the exact amount of compensation hasn't been published anywhere but they believe it to be in the region of £330 million. 'In an article published following the autumn budget, the Fraser of Allander estimated the cost to the devolved public sector for the employer NICS tax increase to be around £507 million, slightly lower than the Scottish Government estimate of £550 million (or £700-800 million if the increased cost of delivering contracted out services is included).' Mr Ribbons added: 'Whatever figure is correct, the compensation received will not cover the full cost and the Scottish Government have not set aside any money in contingency for this scenario. This will put even more pressure on future settlements from the Scottish Government, especially for unprotected services.' He concluded: 'The Spring Statement does not have an immediate impact on the level of funding confirmed for West Lothian Council. 'In line with other local authorities, the council continues to face substantial budget challenges. A budget gap of £9.7 million remained for 2026/27 and 2027/28. 'The UK economy's performance has deteriorated compared to the OBR's October forecast. This along with global uncertainty with regards to trade tariffs, inflation, interest rates and political conflicts means that it remains a challenging position for the UK economy and public sector spending.' By Stuart Sommerville, Local Democracy Reporter Like this: Like Related
