Labour leader Marra accuses SNP of having ‘underfunded’ Glasgow City Council

The Government “underfunded” Scotland’s largest council by more than £350m last year, Labour has claimed.

The party said its analysis of the money given to Glasgow City Council showed the authority would be £357m better off if its allocation had risen in line with the block grant given to the Scottish Government.

Now Scottish Labour leader Michael Marra is calling for “clarity” from SNP ministers over whether reforms to Scotland’s councils will lead to “more funding for local communities”.

His comments came as Labour said Glasgow City Council’s funding allocation from the Scottish Government had gone from £1.66 billion in 2013-14 to £1.64 billion in 2025-26.

But it said the block grant to the Scottish Government grew by 20.3% in real terms over that period, adding that if funding for Glasgow City Council had kept pace with this the authority would have received £1.997 billion last year.

Labour’s attack came as ministers seek to make major changes to the way public services in Scotland are organised, which could see the country’s current 32 councils scrapped and replaced with between six and 10 larger regional bodies and up to 160 smaller local ones.

First Minister John Swinney has stressed however he is committed to “detailed dialogue with local authority leaders” on what the new system will look like.

But Mr Marra insisted that under the SNP “too much money, power and control in Scotland is centralised with the Scottish Government”, arguing that this “needs to change”.

He stated: “Councils have been underfunded and too often Labour councillors have been the last line of defence for local services in the teeth of cuts handed out from Holyrood.

“Now Scottish Government plans to reform local government with no understanding of why they are doing it or how they are going to achieve it. It’s a mess.

“We urgently need clarity from the SNP government about their reforms, and a commitment that it will mean more powers and more funding for local communities.”

Deputy First Minister Jenny Gilruth responded: “Despite a challenging financial settlement, the 2026-27 Budget provides Scotland’s councils with record funding of almost £15.7 billion, including more than £1.8 billion for Glasgow.

“In the face of high inflation and the impacts of global challenges on our economy, we are prioritising investment in frontline services and supporting those in need.

“Scotland continues to provide the most comprehensive package of cost-of-living support in the UK, and this year alone we will invest £160 million to mitigate shortcomings in the UK welfare systems.”

Ms Gilruth, also the Finance Secretary, added: “I have written to the UK Government to urge action on the cost of living in the upcoming Budget, to reverse damaging welfare policies and regarding Glasgow’s housing challenges and liability for equal pay.

“I have also called on the Prime Minister to demonstrate his commitment to devolution by providing us with the fiscal powers and commensurate funding to support investment and growth.”