Extra Covid-19 funding should go to councils, says Highland leader
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HIGHLAND Council leader, Margaret Davidson, has called for any additional Covid-related Scottish funding from the UK Government to be passed on to local councils.
She made the plea after it emerged only £1 billion of the £8.6 billion allocated to Scotland to help support the coronavirus pandemic has gone to local government. The remainder has gone to the Scottish Government. The money has been granted under the Barnett consequentials which is a format used by the UK treasury to adjust the amounts of public expenditure allocated to Scotland, Northern Ireland and Wales to reflect changes in spending levels in England.
Since the start of the pandemic crisis almost a year ago, Scotland has received an extra £8.6 billion, with Wales getting £5.2 billion and Northern Ireland £3 billion, making a total of £16.8 billion.
Mrs Davidson has written to the Scottish Cabinet Secretary for Finance. Kate Forbes and UK Chief Secretary to the Treasury, Steve Barclay, and pointed out the council passed a motion recently calling for "complete transparency" on the issue.
In her letter to Ms Forbes, councillor Davidson said: "The Barnett process is at best oblique and seems shrouded in mystery. It does not provide the transparency and clarity that should be expected from a modern democracy.
"Highland Council’s motion is asking both governments to commit to working together to improve the process, the understanding and the information that is made available in relation to Barnett consequentials."
She added: "It is worth noting that according to Cosla, to support the pandemic response, Scotland has had guaranteed additional funding from the UK Government of £8.6 billion, with the Scottish Government choosing to route £1billion through local government. The Scottish Government needs to be much more open about the rationale behind its decisions on the use of Barnett consequentials.
"Any additional Covid-related funding for 2020-21 from UK Government that is due to increased expenditure in local government in England should be passed on to local government in Scotland in full."
She also stressed that at the end of December 2020, there were 30 different ring-fenced/directed pots of funding. "All of these come with an additional administrative burden.
"This approach reduces councils’ ability to respond to local needs and demands. Funding has been 'drip fed' between April and December, creating uncertainty and instability.
"We need an end to small pots of ring-fenced, highly directed funding which is not within the core settlement and allow local government the freedom to act in the best interests of its citizens," added Mrs Davidson.
According to the UK government's website, the additional Covid-19 funding has been increased three times from a total of £14 billion in October last year to £16 billion in November and £16. 8 billion the following month.
The money went up to "reflect the changing situation" with the coronavirus, it was stated.
