COUNCILS in Scotland are facing a £1 billion budget gap amid a financial crisis the scale of which they have never seen before, it has been warned.
Johanna Baxter, head of local government bargaining at the trade union Unison, insisted there is a "fundamental need" for more funding and greater power over how this money is used.
She made the comments while giving evidence at Holyrood's Local Government and Communities Committee.
Ms Baxter said councils were already facing a £205 million gap at the start of the financial year.
Council umbrella body Cosla has since estimated the coronavirus crisis will cost local authorities £739m.
Arms-length bodies will be hit by a further £121m, Ms Baxter said.
She told MSPs: "The financial crisis local government is now in is of a scale that we have never seen before."
She said councils require long-term financial stability from the Scottish Government and greater discretion over how they spend their funding.
Elsewhere, Callum Chomczuk, national director of the Chartered Institute of Housing, said local authorities are now owed more than £100m in rent arrears.
He told MSPs: "We saw rent arrears in the local authority sector increase by £12m over the last four, five months.
"That is significant. Local authorities are now managing over £100m of rent arrears.
"For every pound that we don't raise in rent, that's a pound that we can't use to keep rents low; that's a pound that we can't use to improve services; that's a pound that we can't use to actually build new homes.
"So £100m has a significant impact on local authority services that they are going to have to manage."
Mr Chomczuk also said there has been an increase in monthly homelessness applications since the pandemic began.
He said: "Back in April, we had a little under 2,300 applications for homeless services.
"In the most recent data set for August, there's a little under 3,000, so that's 700 more monthly applications in that time."
He said there was a "huge downward pressure" on homelessness applications due to eviction protections and the furlough scheme, meaning they may be "artificially low".
He added: "The policies in place are keeping homelessness applications down, but as the furlough scheme ends and the eviction scheme comes to an end at some point in the future – there's no absolute date on that – we are likely to see a big impact on services."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel