Fiscal framework between Scottish Government and local government: progress report December 2023

Introduction

The Verity House Agreement, signed on 30 June 2023 as part of the New Deal with Local Government, committed to concluding a Fiscal Framework which establishes early and meaningful budget engagement, the simplification and consolidation of the Local Government Settlement, and establishes a clear process for exploring local revenue raising powers and sources of funding. The Framework should also, wherever possible, provide multi-year funding certainty to support strategic planning and investment.

Discussions on a fiscal framework have taken place alongside the development of the Verity House Agreement, with some sections nearing completion. There remains work to be undertaken to complete the drafting and reach agreement on a final draft. Nevertheless, both parties are committed to acting in accordance with those parts of the framework which have provisionally been agreed.

The following sections summarise the areas of work which have made the most progress and identifies those areas which are for further development.