Chamber and committees

Do you mean a review of the council tax specifically or local government funding in the round?

Yes, as far as I am aware. I can confirm with the committee, but it is a Government priority and every Government priority is under consideration with the new deal, because local government is a key partner in not just delivery, but in development of how we move forward and deliver on both the priorities for the Scottish people and also what this Parliament sets as the agenda.

On climate change or more generally?

Thank you for the question. I will preface my answer by saying that I think that the committee’s work on this inquiry is really helpful as part of the wider challenge for us all to make progress on net zero and to work collaboratively with local government, as different spheres of government, all engaged in an important process of work to make a difference for the communities we serve.

On a point of detail, the Scottish Government disputes the 70 per cent figure. We argue that local authorities have discretion to allocate 93 per cent, or £11.8 billion of the current financial year settlement, of the funding that we provide. Plus they have discretion, of course, over all locally raised income.

However, the point on ring fencing and how we work together on shared progress and accountability for national outcomes that both local government and central Government, as different spheres of government, want to see progress on is all part of the discussions on the fiscal framework, which are continuing at pace. The discussions within that, at elected level and official level, are about how, in the next financial year, we get to a position where local government and central Government, having gone through a process of considering the current ring fencing, are working in an understanding of what the best scenario is for the financial year ahead and those thereafter.

The evidence that the committee has collected about the size of different funding allocations is helpful and will be part of the on-going consideration of the fiscal framework between finance ministers and the finance spokesperson for COSLA.

I will come to the new deal in a second, but I want to emphasise an important point that the deputy convener made at the start of her questioning to the cabinet secretary: local authorities are independent corporate bodies with their own powers and responsibilities. Councillor Gail Macgregor emphasised that point in her evidence last week. Local authorities need to be able to develop initiatives that work for their local areas.

The new deal is about how central Government and local government—recognising that both aspects of Government are important spheres of not just delivery but development of policy—get to a place where, from the next financial year onwards, we are working jointly on our shared priorities and the national outcomes that we both want to deliver. Of course, net zero is a cross-cutting policy area within that that is of the highest pertinence, just like local government is a cross-cutting consideration across the different spheres of portfolio responsibility within the Scottish Government.

The development of the new deal is going well. Through the summer, Government officials met COSLA officials over 10 times as part of their intensive collaboration on the fiscal framework. As the new deal develops, as you will know, it is the fiscal framework for local government that is intended to establish agreed ways of working on the fiscal relationship, greater transparency and, importantly, accountability. Alongside that is the partnership agreement, which provides the framework for specific policy agreements based on shared value-based overarching agreement on outcomes and accountability. It is in that partnership agreement space where considerations of how we work together on the net zero agenda are being developed. Then the resourcing is part of that within the fiscal framework.

This is about working with COSLA to make sure that, from the next financial year onwards, we have an agreed new deal settlement where we are focusing and where we collaborate on what we can do together, rather than the sometimes more polarised position that has been articulated in the public domain in years past. My experience, not just in this role but in others in government, is that when central Government and local government work together, what can be achieved is significant and makes such a constructive difference. As a Parliament and as a democracy, the more that we emphasise the good work that is going on between local and central Government, the more progress we can make together. This committee’s work on net zero has certainly shone a light on what has been done well and what more can be done together, and I look forward to working with local government colleagues in the presidential team to progress that. I am sure that colleagues across the different portfolio areas look forward to working with their COSLA spokespeople on the shared agenda.

The Scottish Government has always seen the two crises as of equal importance. Along with other considerations in the new deal discussions, it is absolutely, along with the net zero agenda, an important part of the wider Government agenda. Of course, that includes our engagement with local government around the new deal.

I think that that is a question for all of Government. I will bring in Ian Storrie on the point of ring fencing and the percentages to provide a bit more detail on that. The funding that is allocated and the considerations around ring fencing are all based on decisions, many of which this Parliament takes, on shared outcomes that we agree as a democracy that we want to see. The different spheres of government then work collaboratively to deliver those outcomes.

Local authorities have argued and engaged constructively in a process of how we get to a position where local authorities have the flexibility that they feel would be beneficial for them to meet those shared national outcomes and aspirations and targets that we want to see realised. How we consider the balance into the next financial year and going forward is at the heart of the discussions on the fiscal framework and the considerations around the new deal more widely.

There has been good constructive discussion on ring fencing—I will allude to that in a moment—but where the funding that is allocated to local government is ring fenced, so to speak, is around how we meet aspirations and policy targets and commitments that both spheres of government want to achieve. The discussions on the fiscal framework and the new deal are around where there is contention between local and central Government on what the optimal position would be. That is why we are engaged in this very constructive process of how we move forward. Ian Storrie may want to add something.

The cabinet secretary may want to add something afterwards. Local government and central Government work collaboratively on the delivery of the targets that the Parliament sets. In fact, local government told the committee last week that it wants, quite understandably, to be in a co-design relationship for how policy is developed and it obviously contributed to this Parliament’s target setting on climate change. In terms of how those targets are delivered, if you are just thinking about resourcing, and I think that you are, resourcing must be properly structured to deliver the targets. As part of the considerations around the fiscal framework and the new deal, as I have said and as the cabinet secretary has alluded to as well, considering how we give local authorities the flexibility that they need to do what is right in their communities is part of how we are developing the new deal. Of course, I cannot say more on the new deal because it is still in development, but it will be there for you to see as we go into the next financial year.

I do not have a huge amount to add to what the cabinet secretary said, except to say that, of course, local authorities and the Scottish Government work collaboratively around the national performance framework, which has place making and well-being encapsulated in the outcomes that we are seeking to achieve together. That is a key part of how we work collaboratively across Government with local authorities.

To pick up on the previous conversation related to this, building on the Community Empowerment (Scotland) Act 2015, in the previous parliamentary session there was a very good piece of work undertaken in the local governance review. Part of the work in the new deal will be to think and to act collaboratively between local government and central Government on how we progress the local governance review. That will involve considerations around engagement with communities and progress on the wellbeing agenda.

I am not saying that, because that is what the evidence shows happened for people going from DLA to PIP, but that is the evidence from the DWP’s undertaking of its process. We will see how that situation develops in our system. A key point of emphasis that members will appreciate is that we expect to get more decisions right first time. The split of a third, a third and a third comes from initial findings, but 65 per cent of PIP appeals are successful, so there is a different outcome in the end. We have those background situations that help us to consider how this process into the ADP will progress. Certainly, we would look to get decisions right the first time. That is a determination of ours so we are likely to see more success.