Edinburgh Council leader warns of cuts after McKee cabinet appointment

The City of Edinburgh Council Leader, Jane Meagher, has said the new Scottish cabinet caused her a “huge amount of concern” because of the potential for cuts for struggling local authorities.

She believes that that Ivan McKee’s new remit as Cabinet Secretary for Public Service Reform, which tasks him with streamlining and reforming the public sector, could result in funding being taken away from Edinburgh Council and the public sector.

The City of Edinburgh Council already has the least amount of funding per capita in Scotland, and there was extensive debate in the City Chambers on Thursday about how the new Scottish cabinet, confirmed today by Parliament and HM The King will respond to this inequity.

She also referred to the £5 billion funding “black hole” which McKee and the new cabinet have been tasked with dealing with. Meagher believes these two factors could result in funding being “further diminished” for local authorities.

After fielding a question about this funding gap at a full council meeting in the City Chambers, Cllr Meagher said: “When I saw the extent of the black hole – so to speak – I was very alarmed, not only for The Scottish Government, but, more importantly, for local government, and for this council in particular.”

She added: “When I saw the ministerial lineup for the new Scottish Government, it caused me a huge amount of concern that one of the things that this Scottish Government intends to do is diminish even further Scottish local government finances as a way of filling the gap that has been brought about by their own failings.

“I’m extremely worried about it, and I expect that there will be many others in this chamber are worried about it.”

Meagher later confirmed to Deadline News that she was referring to Ivan McKee’s appointment as Cabinet Secretary for Public Service Reform.

Meagher will write to First Minister John Swinney to outline this and other concerns.

Mr McKee used to be Business, Trade and Tourism Minister, but was elevated to the cabinet on Wednesday by First Minister, John Swinney. He will be in charge of reforming public service in Scotland “in a way that is fiscally sustainable”.

When asked by journalists whether “reform” here is a euphemism for cuts, Swinney said: “It’s about changing the way in which we deliver public services, and that’s exactly what we’re going to do.”

Funding from central government grants, local taxation, and non-domestic rates is allocated based on a collaborative process between the Scottish Government and the Convention of Scottish Local Authorities (COSLA).

There was no mention of cutting funding for local government in the SNP’s manifesto, and Swinney has maintained that any reform to public service is about “change” rather than cuts. The SNP manifesto also outlined a pledge to “develop and progress” funding models.

McKee was appointed by Swinney on Tuesday and confirmed by parliament on Thursday.

The full list of new cabinet members is as follows:

John Swinney – First Minister

Jenny Gilruth – Deputy First Minister, and Finance and Local Government

Ivan McKee – Public Service Reform

Angela Constance – Health and Care

Mairi McAllan – Education, Culture and Gaelic

Neil Gray – Justice

Shirley-Anne Somerville – Social Justice and Housing

Gillian Martin – Climate Action and Rural Affairs

Stephen Flynn – Economy, Transport and Tourism

The overall number of Cabinet Secretaries and Junior Ministers has been reduced from 28 to 20.

Following confirmation by parliament, Swinney’s cabinet must now receive royal assent from the king.

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