The UK Government and the Chancellor Sajid Javid have decided that the budget will take place on 11 March 2020. This date has a knock on effect on both our national finances and the budget which The City of Edinburgh Council will set for the coming year.
The council get a block grant from Holyrood but the amount of this will not be set until The Scottish Government reorganise a date for their own budget. This was to be 12 December 2019 and had to be postponed because of the General Election.
The Chancellor was due to provide the Cabinet with an economic update before updating Parliament during Treasury oral questions today.
In March Mr Javid says that he will set the finances for the new decade ahead with a ‘new chapter for the UK’s economy’, make good the government’s promises on tax and investing billions of pounds across the UK to ‘level up and spread opportunity’. The budget is expected to prioritise the environment, public services and tackling the cost of living. The government also promises to make the biggest cash increase to the National Living Wage.
Individuals, interest groups and representative bodies can now submit a Budget representation to HM Treasury to comment on government policy and/or suggest new policy for inclusion in the Budget.
Councillor Alasdair Rankin, Finance and Resources Convener of The City of Edinburgh Council, said: “As with all Scottish local authorities, we face rising demands for our services at a time when the funding we receive from Government is reducing. This requires us to continue to reform our services and deliver significant savings over the coming years.
“We have a strong track record of managing our finances well, but this relies upon having a clear understanding of our financial settlement from Government, at the right time. In the absence of a timely settlement being announced we will need to make prudent assumptions about where we will continue to invest or to reduce the funding we allocate to services, to enable us to set a balanced budget for the coming financial year.
“The UK Government must provide certainty for The Scottish Government’s budget at the earliest opportunity to allow them – and us – to make assumptions around how we might spend, save and invest in the years ahead. Failure to do so could have significant consequences in Scotland.”
Finance Secretary Derek Mackay said: “The UK Government gave no prior notice before announcing their budget date, showing complete disrespect for the Scottish Parliament and our budget process. I received no response to our repeated calls for clarity on the budget date, including the most recent letter sent to the Chancellor just two weeks ago.
“The UK Government’s approach to the Scottish budget is completely unacceptable – the delay of over four months since their original planned date cannot be blamed on the general election, and suggests a disregard for devolution and a lack of fiscal responsibility.
“The failure of the UK Government to publish its budget at an earlier time means we do not have clarity on the funding available for our schools, hospitals and other vital public services. Despite this, we remain focused on introducing a Scottish budget for 2020-21 at the earliest practical opportunity.
“We will continue to engage with the Scottish Parliament and the Scottish Fiscal Commission over how best to respond to what are exceptional circumstances, and an announcement on the proposed date for introduction of the new Scottish Budget will be made in due course.”
The Convention of Scottish Local Authorities (COSLA) warned the Chancellor today of the deep risk facing Scotland’s Councils as a result of delaying a UK Budget until 11 March 2020 – describing the decision as “extremely worrying”.
Local Government is a devolved matter in Scotland, but COSLA asserts that the significant delay to the UK budget puts the essential services which Scotland’s Local Authorities provide to communities at risk. Traditionally the Scottish Budget would follow the UK Budget setting out the money available for Scottish Local Government.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said: “By delaying the UK budget until mid-March, the UK Government is putting thousands of essential public services at risk of going without funding. COSLA is calling for the Scottish Government to do all it can to mitigate this risk.
“Local authorities carry out a complex and hugely important role in our society. As the employer for 10% of Scotland’s workforce and a procurer of over £6.3bn in goods we are the key economic driver for communities across the country. Any delay to our budgets means that these services are put at risk.”
“The UK Government’s decision runs the risk of delaying the Scottish Government’s budget. This significantly impedes the ability for local authorities to formulate their own budgets meaning Scotland’s communities are disadvantaged.
“COSLA is calling on the UK Government to provide Scotland with an increased settlement so that the Scottish Government can provide Councils with enough funding to deliver the vital services that our communities rely on.”
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