Scottish councils raise bankruptcy threat over SNP demand to maintain teacher numbers
‘Risk’ councils could go bust in the same way as several English authorities
Scottish council chiefs have warned the SNP’s determination to maintain teacher numbers could help push local authorities to the brink of bankruptcy.
Umbrella body Cosla highlighted the Scottish Government’s policy on teacher numbers as it admitted there was “a risk” that Scottish councils could effectively go bust. It comes as talks continue between Cosla and the Scottish Government over a £145.5 million pot of funding set aside by SNP ministers to maintain teacher numbers.
Councils are refusing to agree to the Government’s demands, leaving a question mark over what will happen to the money.
Glasgow City Council has already ignored requests made by Education Secretary Jenny Gilruth by going ahead with a cut of 172 teaching posts, despite the prospect of potentially losing out on its £16.5m share of the fund.
Cosla, along with council chief executive organisation Solace and CIPFA finance directors, have highlighted the issue in a new submission to Holyrood’s local government committee.
They said: “Scottish Government spending decisions that run counter to the VHA [Verity House Agreement] agreement, such as the council tax freeze and maintaining arbitrary teacher numbers, will prevent councils from achieving better outcomes for their communities.
“Such policy and spending decisions put further pressure on councils who are legally required to set a balanced budget. This means councils are forced to make even tougher decisions and, as reflected within this response, will only lead to further service cuts and job losses.”
The bodies were also asked if there was a risk that Scottish local authorities might face similar financial difficulties to those experienced by some English councils, such as Nottingham, Croydon, Thurrock and Slough, which have all effectively declared bankruptcy in recent years.
They responded: “There is a risk that Scottish local authorities will face similar difficulties to those faced by some English councils.
“While some of the factors affecting English councils do not apply in Scotland [namely risks relating to commercial investments], many of them do [equal pay claims] and Scottish councils face constraints and pressures that do not exist in England, for example requirements to maintain teacher numbers.”
Concerns about the potential impact of the next teachers’ pay deal on local authority finances are also thought to be influencing the reluctance of councils to agree to the terms set by the Government on teacher numbers, while falling school rolls have also been highlighted. The warning from Cosla came as Finance Secretary Shona Robison was due to outline to the impact on Scotland of what was described as a “new era of austerity”.
A Scottish Government spokesperson said: “The Scottish Government is making record levels of investment in Education and Skills, with the budget growing to over £4.8 billion for 2024-25.
“This includes offering £145.5 million to local authorities to protect teacher numbers. Talks are continuing with COSLA to reach an agreement that ensures teacher numbers are maintained. We would strongly encourage any council planning teacher cuts to reconsider, given the clear conditionality associated with this funding."
In May, Ms Gilruth told The Scotsman: “I'm very hopeful [of a resolution] because maintaining teacher numbers in Scotland's schools is good for our children and young people, it's good for attainment, it's good for responding to things like behaviour, responding to things like Pisa, and I don't think any parent or carer in Scotland would agree with a policy for the Government to move away from maintaining teacher numbers.”
The Scottish Government confirmed earlier this month that ministers remained determined to protect teacher numbers.
Comments
Want to join the conversation? Please or to comment on this article.