“North Ayrshire Council expresses its extreme disappointment with the budget settlement for local government and with its presentation which the Labour Group believe is both unethical and dishonest and is in no way consistent with a partnership approach.
Council notes that most of the supposed £550m additional funding is for existing commitments and that the £71m of uncommitted funding goes no way towards meeting the identified budget gap in council funding of £612m due to inflation, energy prices and demand pressures, and the requirement for more than £400m likely to be needed for pay settlements in the coming year to address recruitment and retention issues and avoid understandable industrial action by trade unions.
This budget settlement means another massive real terms cut in councils’ core funding, after more than 10 years of real terms cuts, and will lead to socially harmful cuts to vital local services and the loss of jobs within local authorities and from local companies that rely on councils for their employment.
Council further notes the additional burden on council finances from revaluation of non-domestic properties and condemns the threat by the Scottish Government to cut grant funding if councils were to be successful in appealing against redeterminations.
For North Ayrshire Council, the initial assessment of the local government settlement by the Council’s finance team estimates a budget gap of over £10million in 2023/24.
Council therefore agrees:
1.That the Council should make a robust public response to the budget statement, challenging in the strongest possible terms the presentation of the supposed £550 additional funding and highlighting the massive real terms cut in funding for vital local services;
2.That the CEO writes a letter to the First Minister and the Deputy First Minister on behalf of the Council that rejects that this is a fair settlement; highlighting the massive real terms cut to the council's funding and the impact this budget settlement will have on vital local services and demanding a fair settlement to defend vital local services and jobs;
3.That the Council undertakes an assessment of the likely job losses within the council and local economies that will result from this budget settlement; and
4.The Council agrees to offer a meeting of group leaders with the local government trade unions to set out our assessment of the impacts of this budget settlement and seek to undertake joint action to defend vital local services and jobs.”