Title

FINANCE

Scottish councils' debt is one-and-a-half times funding

The debt of councils in Scotland is more than one-and-a-half times the latest local government funding settlement, the Scottish Conservatives have found.

The debt of councils in Scotland is more than one-and-a-half times the latest local government funding settlement, the Scottish Conservatives have found.

Local authority debt in the devolved nation has reached £21.8bn, compared to around £14bn allocated to councils for 2024-25.

Scottish Conservative shadow finance secretary Liz Smith said the situation was ‘eye-watering' and ‘unsustainable'.

She warned Holyrood's recent council tax freeze meant debt was likely to grow.

Ms Smith said: ‘It's only a matter of time before a Scottish council goes bust unless the SNP Government finally agrees to a fair funding deal.'

A Scottish Government spokesperson said: ‘Ministers are aware that many councils are under financial pressure, which is why the 2024-25 Scottish Budget provides record funding for local government of over £14bn.'

FINANCE

Shifting the presssure

By Martin Ford | 07 August 2025

With consultation set to close on the fair funding review, Martin Ford looks at the challenges faced by those tasked with ensuring the new system helps strug...

FINANCE

Fears fair funding could trigger section 114 notices

By Martin Ford | 07 August 2025

Fears councils may be forced into issuing section 114 notices by the fair funding review have been voiced as the consultation deadline approaches.

FINANCE

Leaders call for councils to get £400m sports funding

By William Eichler | 05 August 2025

Council leaders have urged ministers to ensure the £400m announced in the Spending Review for grassroots sports is targeted towards leisure centres and swimm...

FINANCE

Home Office recommits to closing asylum hotels

By Joe Lepper | 31 July 2025

The Government has insisted it ‘remains committed’ to ending the use of hotels for asylum accommodation after growing public anger.

Popular articles by Ellie Ames