Funding for councils needs a radical shake-up to divert cash from wealthier areas to those with the most poverty, according to Susan Aitken.

The leader of Glasgow City Council has written to Shona Robison, Scottish Government Finance Secretary, asking for resources to be allocated on the basis of where the need is greatest.

Aitken said it means there would be less money for the wealthier areas like East Dunbartonshire and East Renfrewshire to enable councils like Glasgow, West Dunbartonshire and Inverclyde to get more.  

Writing in today’s Glasgow Times in her fortnightly column the council leader said that despite targeted efforts to reduce poverty, Glasgow still has a greater need for extra funds than many other councils.

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The leader penned the request together with the City Treasurer and deputy leader, Richard Bell.

In their letter to Robison, they said: “While national policies such as the Scottish Child Payment are obviously making a real difference, it is clear that the rates and effects of child poverty vary considerably across Scotland.

“We believe therefore that there is also a pressing need for more place-based targeting of resource towards the parts of the country where generational poverty is most deeply embedded, if our shared aspirations to eradicate child poverty are to be achieved.”

The Glasgow council leader highlighted the difference between Glasgow with a child poverty rate of 32% and neighbouring East Renfrewshire with 14.4% and that the top six for child poverty has twice as many living in deprivation than the six lowest.

She added: “Yet there are currently very few mechanisms in the way that funds are distributed to local authorities – either through general allocation or specific funding pots – that recognise and respond to these disparities.”

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She added: “The time is right … for the Scottish Government to work directly with those local authorities containing the communities with the highest and most entrenched levels of child poverty, targeting resource towards place-based poverty in tandem with Scotland-side approaches.”

Aitken stated it will mean other councils losing cash, adding: “This will require an open acknowledgment of geographical inequality and what will no doubt be difficult decisions to match funding to the parts of Scotland where the need is greatest, which will mean more affluent local authorities receiving less.”

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A Scottish Government spokesperson said: “Tackling poverty and protecting people from harm is one of three critical missions for this government.

“As one of a range of actions in our Tackling Child Poverty Delivery Plan, the Scottish Government is working in partnership with Glasgow City Council and other partners on a city-wide child poverty project to support families in need.

“The Scottish Government has repeatedly asked the UK Government to do more to support those most impacted by increasing inflation, interest rates and living costs. The Deputy First Minister made this point again to the Chief Secretary to the Treasury after last week’s further interest rate rise.

“In 2023-24, Glasgow City Council will receive over £1.5 billion to fund local services, which equates to an extra £62.6m to support vital day to day services or an additional 4.2 per cent compared to 2022-23.”