Council Leader calls for clarity on Barnett consequentials and end of ‘drip fed’ and ‘ring-fenced’ funding processes

The Leader of The Highland Council, Cllr Margaret Davidson has this week written to the Scottish Government Cabinet Secretary for Finance and UK Government Chief Secretary to the Treasury asking both governments to commit to working together to improve the process, understanding and information that is made available in relation to Barnett consequentials.

At a recent meeting of the Council, the following motion was agreed that:

“Highland Council requests that the UK and Scottish Governments work together to provide complete transparency to Scottish Local Authorities – and the Scottish people – on all matters pertaining to Barnett consequentials.”

In her letter to Kate Forbes MSP, Cllr Davidson says:

“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.”

Cllr Davidson adds: “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.

“In addition, COSLA have highlighted 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 & 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 local citizens.”