Every council finance director in the country has warned the Scottish Government services may be stopped over a £1bn funding crisis.
In an “unprecedented” letter, they also claimed there is not a “path” for local authorities to deliver balanced budgets next year.
Acting Finance Secretary John Swinney will this month deliver what is expected to be one of the most difficult budgets in the history of devolution due to rising inflation and funding staff salary rises.
In a letter to Swinney signed by all 32 council finance directors, they flagged up the “significant and concerning” financial picture.
They said the current year was difficult enough due to pay deals and other factors, but warned 2023/24 would be even tougher.
“The situation for next year and beyond is unprecedented. Local Government is facing over £1bn of pressures in 2023-24 with Councils now facing tough choices that will impact the services that the public rely upon.
“Such considerations include those relating to schools, waste, roads, family support, public health, and social care.
“The choices come down to reducing services, stopping services and ultimately, reducing the number of jobs. This is bad news for individuals, families, communities and economies across Scotland.”
They added: “At our Directors of Finance meeting last week it was evident that there is not a path to delivering balanced budgets.”
The finance gurus said councils are crucial in tackling child poverty, the climate crisis, strengthening the public sector following the pandemic and growing the economy:
“It is therefore essential that funding for Local Government is fair, sustainable and flexible – without this, delivering on those priorities will be impossible.”
They also warned of “significant consequences” for the most vulnerable Scots if local government funding is not increased.
Labour MSP Daniel Johnson said: “This damning letter lays bare the damage the SNP have inflicted on local services.
“The SNP have been a conveyor belt of austerity for years, raiding local budgets to pay for their vanity projects – and now there is nothing left to cut."
Johnson added: “Local councils are at breaking point, and it is not just because of the current economic crisis – it is down to years of neglect and billions of pounds worth of cuts by this government.
"Councils have also faced a funding squeeze in recent years and senior figures in the sector fear another tight settlement could push them to the brink."
Scottish Liberal Democrat MSP Willie Rennie said: “Councils could not be clearer. The Scottish Government isn’t doing enough to support them in delivering core public services.
"Local government has never been a priority for the SNP. For years, Nicola Sturgeon has cut council budgets and now she is bulldozing ahead with a billion-pound bureaucracy that will take control over social care away from them too.
"We can’t allow this to continue. As a party that champions local voices, Scottish Liberal Democrats will give power back to communities and strengthen local government.”
The Scottish Government has been contacted.
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