Budget will force councils to make 'impossible choices', says Cosla

Cosla said the budget provides a 'very poor' settlement for local government, adding it was 'damaging' for social care.

Scottish Budget will force councils to make ‘impossible choices’, says CoslaiStock

Council leaders have warned that the latest Scottish Budget will force them to make “impossible choices” in the coming year.

Cosla, the representative body for Scotland’s 32 local councils, spoke out after the SNP Government at Holyrood set out its tax and spending plans last week.

The local authority group criticised the plans for providing a “very poor” settlement for local government, which “fails to address the dire financial situation”.

“The Scottish Budget – which Cosla leaders agree is very poor – undermines the foundations of a fair and sustainable care system and risks reversing progress toward a model that truly meets people’s needs,” said councillor Paul Kelly, Cosla’s health and social care spokesperson.

“Quite simply, this Budget is not just disappointing for social care, it is damaging.”

Government ministers announced that funding for councils would increase by 2% in real terms under their proposals.

However, Cosla said the settlement does not provide them with the £750m they need to protect and strengthen social care.

Council leaders said they believe that the Budget actually represents a cut to social care funding in the coming year.

“There is no dedicated, additional funding for social care, and the £160m allocated for paying the Real Living Wage to adult social care workers falls short of the estimated £175m cost of this policy commitment,” a statement from Cosla said.

“Without significant new resources, people will continue to face unacceptable delays for social work assessments and care packages. Services already under immense strain will be pushed even closer to breaking point, and councils will be forced into impossible choices.”

Cllr Kelly added: “Cosla remains committed to improving the design and delivery of social care and we would welcome the opportunity on offer to take forward focused joint working to support our shared ambition of ensuring those with complex needs are supported in the right setting. But without proper investment, that ambition cannot be realised.”

The Scottish Budget includes changes to income tax, increases for Scottish child payments, and separate taxes on mansions and private jets.

Western Isles Council warned this week that it is “once again in a challenging financial position” and facing a £4.1m budget gap following the Scottish Government’s budget announcement.

A Scottish Government spokesperson said: “The Budget delivers record funding of almost £15.7 billion for local authorities, a real terms increase of 2%. A response to Councillor Bell’s letter will be issued in due course.”

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Last updated Jan 22nd, 2026 at 16:33

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