Title

FINANCE

Scottish councils' debt is one-and-a-half times funding

The debt of councils in Scotland is more than one-and-a-half times the latest local government funding settlement, the Scottish Conservatives have found.

The debt of councils in Scotland is more than one-and-a-half times the latest local government funding settlement, the Scottish Conservatives have found.

Local authority debt in the devolved nation has reached £21.8bn, compared to around £14bn allocated to councils for 2024-25.

Scottish Conservative shadow finance secretary Liz Smith said the situation was ‘eye-watering' and ‘unsustainable'.

She warned Holyrood's recent council tax freeze meant debt was likely to grow.

Ms Smith said: ‘It's only a matter of time before a Scottish council goes bust unless the SNP Government finally agrees to a fair funding deal.'

A Scottish Government spokesperson said: ‘Ministers are aware that many councils are under financial pressure, which is why the 2024-25 Scottish Budget provides record funding for local government of over £14bn.'

FINANCE

Cambridgeshire 'bunfight' looms

By Neil Merrick | 22 September 2026

Cambridgeshire councils waiting for a decision on reorganisation are heading for a ‘bunfight’ over the debts of a development company set up by the county, a...

FINANCE

MJ Regeneration: The council homes push needs solid foundations

By Jackie Sadek | 21 September 2026

If councils are to come close to the targets to build new homes, amid the flurry of other Burnham policies, they will need serious support to deliver, says J...

FINANCE

Government faces possible legal challenge over funding cuts

By Martin Ford | 18 September 2026

The Conservative Party has instructed lawyers to look into mounting a legal challenge over cuts to council funding.

FINANCE

MJ Regeneration: A Budget to build from

By David Blackman | 17 September 2026

Chancellor John Healey’s commitment to regional economic growth predates the Burnham Government by about 30 years, says David Blackman. His Budget will need ...

Popular articles by Ellie Ames

-->