Pay deal: Labour/Tory council has billions in reserves

As Anas Sarwar hides off-screen, refusing to pose beside rubbish, as he was happy to do at Glasgow Cop26, Edinburgh City Council tries to get more out of the Scottish Government:

“As the lowest funded council in Scotland, it’s time for the Scottish government to properly fund our capital city and its services.”

The First Minister commented that it was:

“really disappointing” that £140m of extra Scottish government funding had not resolved the pay row.

In 2020/21, Edinburgh City Council reported £360 million in ‘usable reserves’ and £2.9 billion in ‘unusable reserves.’ Glasgow City Council only has £137 million in usable reserves and less than £1 billion in unusable reserves.

https://www.edinburgh.gov.uk/downloads/file/28722/annual-accounts-2020-21-summary

£2.1 billion of the Edinburgh unusable reserves are for ‘revaluation.’ Any reader able to comment on this?

10 thoughts on “Pay deal: Labour/Tory council has billions in reserves

  1. The last time I checked a Labour councillor told me that Aberdeen City council was the lowest funded council in Scotland. Now its a Labour Councillor from Edinburgh who’s at it!

    Liked by 2 people

  2. Setting aside the petty party politicking going on here, being the capital in which many national organisations – e.g The National library of Scotland, etc – and historic buildings – e.g the Castle, Holyroodhouse – are located, Edinburgh is funded in ways different from other cities. Glasgow, for example, has to fund the Art Galleries and The Burrell Collection. So, there are reasons why Edinburgh Council is lower funded, in terms of funds from the SG.

    There is a wider question of local government finance, including the regressive Council Tax, which really has to be examined. It has to be put of a more transparent basis and Councils need to be empowered to raise a greater amount of funding by a range of ways, including land and property taxes, room taxes, workplace parking, etc.

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    1. I do try to keep up so here’s my current thinking

      National library of Scotland
      Not sure but think it should be Holyrood funded

      Historic Buildings
      Historic Scotland’s problem

      Castle
      Brittish Military problem, but any time they want to hand it back, I’m sure we could come to a suitable arrangement on the back rent and any causal repairs required.

      Holyroodhouse
      Lizzie’s problem, her holiday hoose, but again back rent and repairs can be taken into account on handing back the keys.

      Land and Property taxes
      Currently under review, again don’t think Lizzie and her pals will be happy aboot it.

      Room taxes
      Bedroom Tax, currently unacceptable to the majority of the Scottish public. Forced in by Westminster Presently disavowed by Holyrood.

      Workplace parking
      Forced in by Westminster Currently available, Holyrood legislation allows each local authority to enforce it or not as they see fit.
      Need to keep a close eye on this one, to see who controls the council’s who implement this Westminster tax.

      Sorry but that does not leave much of your list for the council to pay for out of their income and reserves. Maybe they should just pay the people the money they were allocated to cover this.

      Always remembering what their masters at Westminster seem incapable of learning that, Foreign generated edicts and concepts rarely go down well in Edinburgh. In fact across Scotland you will be able to find a fare few Jenny Geddes attitudes.

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  3. From Audit Scotland Annual Audit Report 20/21 – “The Council carries out a rolling programme of revaluations that
    ensures all property, plant and equipment required to be measured at
    fair value is revalued at least every five years.
    The valuation provided by the valuer as at 31 March 2020 recognised
    a material uncertainty, indicating that lower confidence could be
    attached to the valuation than otherwise would be the case given the
    unprecedented impact of COVID-19 on global markets. We included
    an emphasis of matter paragraph in our independent auditor’s report
    on the 2019/20 annual accounts to draw attention to this.
    There is a risk of material misstatement to the financial statements
    relating to asset valuations.
    Risk assessment: High.”
    Definitely need an accountant to explain what it means in terms of affects on day-to-day finances though.

    Liked by 2 people

  4. Labour HQ’d in London, the party of privatisation and scams, they had ten years in power at Holyrood and sent £billions back to Westminster and via their PFI scams they plunged Scottish councils into £billions of ‘debt’ to private companies. Labour did NOTHING whatsoever good for Scotland in that TEN years.

    Edinburgh is a mess, litter everywhere, graffiti, bins overflowing, and if you walk along main streets in the city centre, there are lots of ‘to let’ signs. It looks like a downtrodden disney world, and yes the SNP were lead party for a couple of years, no time to put Labours’ wrongs to rights, until independents scuppered that, Labour, Tory and others have wrecked the city.

    You just have to look at the TURD building it’s an absolute bloody disgrace, Labour obviously allowed that to be built, it’s an abombiNATION and ruins the skyline in all directions. My take on the BritNats’ tactics in Scotland, is that they want the capaital of Scotland to be a mess, and substandard, as it reflects badly on the parliament. Look at the English civil servants building next to the Edinurgh council building slap bang in the centre, the butchers apron is plastered all over it. The English parties, Labour and Tory, are determined to wreck Scotland, dismantle our parliament and remove democratically elected government by hook and by crook.

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  5. Unusable reserves include a Revaluation Reserve, where increases in the value of fixed assets are recorded. This reserve is not usable as an increase in value of an asset will not be realised until the asset is sold.

    I’ve no idea which assets are involved!

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  6. Maybe some of those assets could be sold, which would increase the useable reserves. I think that’s what they did to find the money to pay the women that Richard Murphy and the GMB had failed to support for years. There’s a list somewhere of assets they sold and leased back. Did they lease them all back? Anyway, that seemed to generate enough cash to fund the recurring cost of increasing the women’s pay and the recurring leaseback cost – somewhat surprising? How many other assets are in that category?

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  7. P. Charles pays 10% income tax. No corporation tax or capital gains tax. Income over £20Million a year plus massive assets. Royals cost £400Million a year. They paid not tax for years. Kept secret under the Official Secrets Act.

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  8. Councils would have a deficit. Then sell off assets to cover it.

    ACC (Labour) refused a gift of £80million for UTG Project supported by the electorate. It would have cost £20Million of public money. Instead they under took the Muse Project. High rise instead of pedestrianisation and open spaces. Cost £7Million over 30 years. £200Million+. Now spending £20Million making UTG a mud pit. A total disgraceful mess.

    Labour (expelled) councillors illegally in with the Tories. Kept in power by a two job Tory, a Libdem who immediately became an Independent. A Tory offender. Spent £300Million on a conference centre used less than once a month.

    The Council is now SNP majority/LibDem. Last council election, They will have to clear up the mess. The only time the Council was run properly and the books were balanced. A five year SNP/LibDem administration.

    The SNP Gov built the AWPR, expanded the airport, built health and sporting facilities, constructed turbines in the Bay and extended the harbour. (Mr Salmond). All the improvements funded by the Scottish Gov. The council mismanaged administration. Wasting £Billion of public monies. Getting into debt. Then sold the City illegally on the stock market.

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