Labour councillors will bid to block an SNP motion that would see the Scottish Government bypassed by the UK government in meeting national insurance increases being introduced as part of its latest budget.
A motion to be proposed by council leader Councillor Cecil Meiklejohn calls on the UK Government to fully reimburse over £500 million costs faced by the public and third sectors
It adds that if Chancellor Rachel Reeves does not fully reimburse these costs it will have a detrimental impact on services and risks the livelihoods of staff across sectors, with a cost in Falkirk of up to £8 million.
The motion is due to be debated at a full council meeting on Thursday. But the council’s Labour Group has submitted a counter motion.
It welcomes the uplift in funding from the UK Government to Scotland and from the Scottish Government to local authorities to fund the national insurance costs for the public sector. It also welcomes the Scottish Government and CoSLA commit to working constructively with the UK Government to ensure the availability of the funding necessary to support public services, recognising it will be allocated under the terms of the Devolution Settlement.
Labour Group leader Councillor Anne Hannah said the SNP motion reveals a lack of understanding of the Devolution Settlement.
She said: “Powers and responsibilities have been devolved to the Scottish Government including local government and health and social care. Funds are allocated to them and the Scottish Government then decides what to do with them, either in the way they have been used south of the border or on other priorities. I often disagree with the priorities they choose but I don’t question their right to make those decisions.
“Local Government in Scotland must negotiate, either directly or through CoSLA, with the Scottish Government over allocations,
“One of the concerns I have raised in the past is that while UK Government grants to the Scottish Government have risen year on year, the grants to Scottish local authorities have not even kept pace with inflation.
“I may not like it but I have never said UK Government funding should be allocated directly to local authorities, bypassing the Scottish Government and I am astonished this motion
She went on: “Some decisions made in Scotland mean that when Barnett Consequentials are calculated on population proportions some of these payments may not meet the full costs. Scotland must deal with the consequences. You can’t have your cake and eat it.”
“The SNP motion asks for over £500 million, not a very specific amount. CoSLA has estimated the costs to local government as £265 million and for adult care as £85 million, a total of £350 million. The Scottish Government calculated the figure at £500 million in October but for some reason is now claiming it to be £700 million.”
“Falkirk Labour certainly wants the Scottish Government to fund employer national insurance costs for councils, but in a way that is under the terms of the Devolution Settlement.”