No sign of boost to council coffers from national budget

Wednesday January 21st 2026

West-Lothian-Civic-Centre

West Lothian Council headquarters

Written by Local Democracy Reporter, Stuart Sommerville

By Stuart Sommerville, LDR

West Lothian’s budget will be set next month, and as accountants work through the figures from Holyrood’s budget award it’s likely the council’s worries will only grow.

In a sit-down with the Local Democracy Reporting Service after last week’s announcement by the Scottish Government, Councillor Lawrence Fitzpatrick, the council leader, said the council: “still faces real terms funding cuts in coming years.”

And he stressed: “It’s important we be honest with the public.”

The Scottish Government hailed its 2026/27 budget coming in a Holyrood election year as “with the people of Scotland at its heart.”

It has promised more money for the NHS and local government.

However on the day the budget was announced West Lothian’s financial officers said in a report to the Executive: “The magnitude of the pressures faced, with constrained funding and cost and demand pressures, should not be underestimated.

“To ensure the ongoing financial sustainability of the council, urgent action is required including identifying, where possible, additional recurring budget saving measures.

“Work continues on finalising the revenue budget model, however based on the challenges faced it is expected that the previously reported gap of £9.7 million will increase.”

Councillor Fitzpatrick told the LDRS: “I am very disappointed in this year’s budget settlement from the Scottish Government.

“Full details are still to be confirmed, but it is clear that the settlement falls well short of covering the continuing rise in the cost of delivering essential services.

“Unfortunately, local government, and the vital services we provide, is clearly not a priority area for the Scottish Government, and are now facing real-terms funding cuts over the coming years.

“The Scottish Government provides 80% of our funding, so their grant has the biggest impact on what we can afford to deliver for local residents.”

In addition to inflationary pressures and the £7m hit from National Insurance increases West Lothian’s coffers have taken a massive hit from a £50m it has had to find to repair crumbling concrete found in its public buildings.

Its most recent call to the Scottish Government for £15m to meet the final costs of the rebuild of St Kentigern’s Academy in Blackburn remains unanswered.

Councillor Fitzpatrick said: “It’s sad to see that our pleas for support to deliver the new St. Kentigern’s Academy extension has fallen on deaf ears once again, with no specific funding to support us, or any other council, affected by RAAC.

“We already have a £15 million funding gap for this critical project, and the lack of backing will have long-term repercussions for local services.”

Details of West Lothian’s own budget are being worked out and councillors will attend a series of special meetings starting early in February to thrash out potential cuts for the next financial year to try to meet the £9.7m gap it faces.

More than 10,000 people responded to an in depth consultation on what spending priorities should be in the next year – the highest ever number to respond to a council consultation.

Councillor Fitzpatrick said: “It’s important we are honest with the West Lothian public about the scale of the ongoing challenge we continue to face, as it leaves local councillors with stark choices to make, which include increasing council tax further, or deeper cuts to services.

“We are legally required to set a balanced budget, so we must make tough decisions and focus on priorities.

“Our capital funding grant has also been reduced, which will make it even more challenging to invest in assets such as improving our school estate, or repairing roads, going forward.”

Announcing its Budget last Tuesday the Scottish Government said it was committed to investing in local authorities as well a reform of the Council Tax system in 2028.

Consultation on that has just gone out to local Scottish Councils.

It said: “This 2026‑27 Budget delivers a real terms increase in the Local Government Settlement to almost £15.7 billion. Following extensive engagement with COSLA and Councils throughout the year, the Budget honours the commitments made to support the local government pay deals, provides additional funding for the Real Living Wage in commissioned services across social care and childcare, and makes available further support to promote sustainable inter‑island connectivity.

The Budget also further consolidates the settlement by base-lining over £770 million in 2026‑27, taking the total funding base-lined to over £2 billion since the Verity House Agreement was signed. It also allocates £5 million in 2026‑27 towards a targeted Council Tax revaluation of properties worth over £1 million, to support the introduction of two new ‘high value property bands’ from 1 April 2028.

“As well as providing revenue raising in future years, this policy commitment recognises the reality that some multi‑million pound homes currently face bills not materially different from far more modest properties and seeks to address that unfairness.”

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