Scottish councils face cuts even if they hike council tax by 5 per cent, IFS warns – The Scotsman

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Local authorities face funding cuts even if they hike council tax by 5 per cent in each of the next two years, new analysis has found.

Research by the Institute for Fiscal Studies (IFS) said areas such as housing support, libraries, leisure centres, road maintenance and waste collection could all feel the squeeze.

It comes after a leaked document revealed councils estimate around 7,100 full-time equivalent jobs could be lost over the next three years as a result of the Scottish Budget.

The calculations were contained in a Convention of Scottish Local Authorities (Cosla) finance document that surveyed councils on the impact on the 2023/24 Budget projections.

The IFS said the Government’s grant funding for Scottish councils is set to fall by 0.8 per cent in real terms this April. Even if local authorities were to increase their council tax rates by 5 per cent, their overall funding would still fall by about 0.3 per cent in real terms, the think-tank said.

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