Let’s work together

Local government workers from Edinburgh and Glasgow city councils are calling on Holyrood MSPs to work with them in tackling an estimated £15bn billion debt crisis across Scotland’s councils.

City of Edinburgh Council and Glasgow City Council hold debt liabilities to HM Treasury and private banks worth ÂŁ1.6 billion and ÂŁ1.7 billion respectively.

Both plan budget savings of £141 million and £120 million over the next three years, figures which would see a minimum of 5,000 jobs cut across Scotland’s two biggest cities.

Amnesty proposed

In response, Unite’s local government sector is proposing an amnesty on interest payments for an estimated £2.5 billion worth of debt which predates the devolved parliament in Edinburgh.

Action on this debt, owed by Scottish local authorities to the Public Works Loans Board, would potentially alleviate the need for huge cuts to revenue budgets and widespread compulsory redundancies.

Collaborative effort

“Government can no longer bury its head in the sand over the funding crisis affecting Scottish local authorities and we need a collaborative political effort to try and avert a disaster,” said Unite deputy Scottish secretary Mary Alexander.

“Edinburgh and Glasgow are merely the tip of the iceberg and we estimate the equivalent of 44 pence in every £1 of council tax collected in Scotland over the last year was spent just meeting the cost of servicing debts.

Breathing space

“A debt amnesty, alongside other measures, could create breathing space in revenue budgets to mitigate the need for compulsory redundancies and cuts to local services, helping to keep jobs and services in public hands,” she said.

“No one apart from the trade unions is offering any solutions other than a cut and gut programme of extreme austerity that will decimate many of the services we currently take for granted,” Alexander added.

“How we fund, protect and re-shape local government is going to be a key issue in the Scottish Parliamentary elections and we are saying ‘let’s work together’ to save jobs and services for the next generation.”