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Row over council funding escalates Councils hit out at 'draconian' moves
(about 3 hours later)
The war of words between some councils and the Scottish government over cash has escalated. The Scottish government is taking fresh steps to try to stop local authorities breaking the council tax freeze.
Local government organisation Cosla claims councils heard about the new deadline for accepting this year's funding deal from the media. The government has given councils details of the sanctions they would face if they broke ranks and raised the tax for the first time since 2007.
Talks took place beforehand between senior councillors and the Finance Secretary John Swinney. Local government organisation Cosla said councils would now face "draconian" measures.
Many councils say they are facing bigger cuts and savings this year than they had expected. It said it was now hard to see how Scotland's 32 local authorities could afford to put up council tax bills.
The Scottish government has described the funding deal as challenging but fair. Further details of the offer being made to councils are still emerging.
It includes money to maintain the council tax freeze and £250m towards the integration of health and social care. But BBC Scotland understands it includes a bigger than usual stick to stop any council putting up the council tax.
However councils will still receive less overall from the government than this year. Cosla claims councils face £350m of cuts. BBC Scotland believes that any council which rejected the funding deal would lose money on three counts.
'Simply unacceptable' The three together are worth more than £408m to Scotland's councils.
Cosla president Councillor David O'Neill said the new deadline of 2 February for accepting the funding deal was useless. The local authorities had been working on the assumption that if they put up council tax, they would lose the money they would have got for freezing it - but not lost any other revenue.
The latest arrangements may mean that Moray's proposed 18% council tax rise may no longer be a practical option.
The council may now need to either abandon the idea or propose an even bigger increase.
Cosla president Councillor David O'Neill said; "Outrageous as it seems the effect of this draconian sanction regime is that any choice to put up council tax is now denied to any council.
"The sanction is so punitive that it is difficult to see how any council could run the risk of falling foul of it.
"For that reason it may well be that no council increases the council tax."
He added: "Make no mistake this is not a matter of choice for councils and this may be perceived as victory for Finance Secretary John Swinney but it is certainly not a victory for communities or democracy."
The deadline for councils to accept the funding deal has been extended to 2 February.
Councils were originally mean to tell the government what they were doing by 2 January.Councils were originally mean to tell the government what they were doing by 2 January.
Mr O'Neill said: "Hearing that the date for councils to accept the new deal via the media is simply unacceptable. 'Pressures on budgets'
"Cosla's political group leaders and I met with Mr Swinney yesterday (Tuesday) and not once did he mention this date. Yet he can tell the press within 20 minutes of our meeting ending. Following an earlier meeting with council representatives, Mr Swinney 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.
"That aside the fact that he has only given us an extra three days to accept the worst financial deal in over a decade simply demonstrates Mr Swinney's misunderstanding of local council processes - if a council has not met to set its budget already or does not have a council meeting scheduled for tomorrow or Monday, this extension is useless.
"Given Mr Swinney only furnished councils with the final proposals for the settlement today it is difficult to see how he expects any council to comply with this timescale.
"I would like to reciprocate and tell Mr Swinney via the media that the package of measures on the table for local government remains totally unacceptable to us."
Following the meeting, Mr Swinney 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."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.""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."
He added: "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."He added: "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."
Scottish Labour's Ken Macintosh said: "It must be beginning to dawn on John Swinney that his plan to force councils to accept half a billion pounds of cuts for local services like schools and social care is the wrong path.
"Scotland's councils have been treated by disdain by the SNP Government whilst being handed cuts which would devastate local services and cost up to 15,000 jobs.
Councils receive the vast bulk of their funding - including money raised from business rates - through the Scottish government.Councils receive the vast bulk of their funding - including money raised from business rates - through the Scottish government.
Independent researchIndependent research
The council tax is the only significant source of cash which they control, It has been frozen since 2007 through a carrot and stick approach - councils get cash specifically to compensate them for freezing the tax.The council tax is the only significant source of cash which they control, It has been frozen since 2007 through a carrot and stick approach - councils get cash specifically to compensate them for freezing the tax.
This means that any rise would need to be significant to be meaningful as they would lose this government cash.This means that any rise would need to be significant to be meaningful as they would lose this government cash.
The Scottish government cites independent research which found it had over-funded the council tax freeze - over five years the local authorities received £164.9m more than they would have by simply increasing council tax in line with the Retail Price Index.The Scottish government cites independent research which found it had over-funded the council tax freeze - over five years the local authorities received £164.9m more than they would have by simply increasing council tax in line with the Retail Price Index.
However, the issue for many councils is the overall amount they receive from the government rather than the money for freezing the council tax.However, the issue for many councils is the overall amount they receive from the government rather than the money for freezing the council tax.
Every council in Scotland expects to receive less in the coming year than they did this year, and many say they will get less than they anticipated.
Moray Council has proposed raising the council tax by 18% while Renfrewshire Council has dismissed the funding offer as "completely unacceptable".
The leaders of many councils are due to discuss funding at a Cosla meeting on Friday.