Scottish councils with responsibility for residents living in differing geographical areas must be given more flexibility over how they target funding to help those struggling with the cost-of-living crisis, a think tank has said.
Research conducted by the Centre for Progressive Policy (CPP) has found higher food and fuel prices are causing the most problems for people in remote areas, while in the cities rising rent and interest rates are taking the heaviest toll.
The economic thinktank found rural and island communities are particularly exposed to higher food prices, which are compounded by the added costs of transporting goods to their areas.
Its research also found an acute issue with fuel poverty exists in remote places in Scotland, with Na h-Eileanan Siar, Highland, and Argyll and Bute having the highest rates of fuel poverty.
READ MORE: A quarter of Scots parents say their kids are worried over finances
Meanwhile, in Scotland’s biggest cities, higher housing costs were found to add the most pressure to household budgets, with private rents equivalent to 39.7% of median take-home pay in Midlothian and 34.5% in Glasgow.
In East Lothian and the City of Edinburgh, private rents are equivalent to 34.0% and 31.3% of median take-home pay respectively.
Glasgow from the air
High mortgage burdens are also a major concern in the cities as interest rates continue to rise, with some households in Edinburgh now having ratios four times their income.
CPP is calling for the devolved governments in Scotland, Wales and Northern Ireland to allow more flexibility in how councils target funding to support residents with the cost of living.
READ MORE: More Scottish homeowners falling behind on mortgage payments
Last year, the Scottish Government is said to have spent £351 million on council tax reductions but did not allocate funding to local authorities to use at their own discretion.
CPP is also calling for better national data collection and legislation to improve data sharing by councils and other local partners during times of crisis.
It also recommends the UK Government conducts geographic analyses to measure the impact of crisis policy interventions to ensure they provide adequate support that meets the needs of different communities.
Ross Mudie, research analyst at CPP and the report’s author, said: “Rising living costs are adding pressure to virtually all households in Scotland, but our analysis reveals significantly different pressures in different parts of the country.
“For remote rural and island communities, already faced with steeper food costs pre-crisis, persistently high food and fuel inflation are adding yet more pressure.
“Households in Edinburgh that have recently taken out a mortgage are disproportionately likely to be feeling the squeeze from rising interest rates, with almost a third of all mortgages recently taken out in the capital being four times the size of homeowners’ incomes.
“Local authorities know their communities best and the UK and Scottish Governments alike must give them the funding and flexibility to target future support where it is most needed.
“Both Governments must also commit to evaluating the impact of crisis support in different places so that it can ensure support is reaching those who need it.”
The Scottish Government has been approached for comment.
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