Frequently Asked Questions about our budget proposals
Frequently Asked Questions about council spending
Q. Where does the council get its money?
A. Most of the council’s money comes as grant funding from the Scottish Government. This currently makes up nearly three quarters (64%) of what the council has to spend on services. Council Tax pays under a quarter (22%) of what the council spends on local services.
Q. Why doesn’t the council have enough money?
A. The amount of grant settlement that the council gets to pay for core services has been reduced and is likely to be reduced further in future years. This is happening at the same time as demand for local services is increasing, as the result of a fast-growing and ageing population.
Q. Why is the demand for local services growing so fast?
A. Midlothian is the fastest growing council area in Scotland. According to the National Records of Scotland, between 2018 and 2028, the population of Midlothian is projected to increase from 91,340 to 103,945. This is an increase of 13.8%, which compares to a projected increase of 1.8% for Scotland as a whole. This puts extra demand on the council for services. For example, the number of school places stood at 12,528 in 2019/20 and will go up to 15,814 in 2026 and 22,758 by 2036.
The number of older people is also increasing, resulting in extra pressure on vital services such as health and adult social care. The number of people in Midlothian aged 65 or over in 2019 was 16,392. By 2026, this will be 20,236. The number over 75 is also expected to rise by around 40% over the same period.
Q. What about all the new houses in Midlothian that are paying council tax. Surely the council’s income should be growing?
A. While it is true that people moving to Midlothian to live in new homes provide more Cuncil Tax, what they pay doesn’t cover the services provided to them - such as schools and bin collections. Council Tax only pays for around 22% of council services. The majority of income (just short of 64%) comes from the grant settlement. A growing population is placing greater demand on our services but grant funding for core services continues to reduce in real terms.
Q. In 2018/19, the council’s spending was £204 million. Why does the council now need £300.7 million for the same or fewer services?
A. The council is spending more but much of that spending is ‘ring-fenced’ by the Scottish Government. This is money used to pay for new and additional national government commitments, such as expanding funded early learning and childcare hours. However, at the same time, funding for core council services is reducing while demand for our services is growing.
Q. Which council services get the most funding?
A. More than half (55%) of what the council spends pays for education, children, young people and partnerships. Over a fifth of all council spending (21%) is money delegated to the Integration Joint Board who are responsible for the delivering health and social care in Midlothian.
The remaining 24% meets the cost of all other council services including waste services, roads, libraries, parks and open spaces, sport and leisure, planning, and environmental health. This doesn’t include the costs of providing council housing, which is fully funded from rents paid by the tenants.
Q. If the increase in population is causing so much pressure on services, why do we keep building more houses in Midlothian?
A. The Scottish Government requires the council to identify sites for new housing development and sets the number of houses that need to be built over a given period. The council’s powers to reject applications for new housing are limited and refusals can be, and have been, overturned by Scottish Government ministers following appeals by the developers.
For Midlothian, the amount of new housing we are required to provide is significant, which is why we are the fastest growing area in Scotland. Inevitably, this housing and population growth leads to additional demands for local infrastructure, such as roads and transport and vital facilities such as schools and health centres.
The council is lobbying the Scottish Government seeking additional, specific funding for the area, given that rapid growth is increasing the demand for services in Midlothian.
Q. Why can’t house builders and developers help pay towards the cost of local services?
A. Building developers already pay to help fund the new buildings we need, such as schools, to serve a growing population. However, they don’t pay towards the cost of staffing and running schools or other council services. The council doesn’t have the power to change this.
Q. Can Council Tax go up more?
A. The council has still to decide any increase there might be in Council Tax for 2025/26 although the current projected budget gap of £9.406 million assumes a 5% Council Tax rise.
Q. Why can’t the council raise more money by introducing new sources of income?
A. The council is looking at new ways of bringing in income to help pay for the services it provides. However, this alone was not enough to fill the budget gap. The council is also having to make savings by changing the way some services are delivered, charging for some services, and reducing some existing services.
Q. How does the council set its priorities when it comes to spending on services?
A. As part of a key document known as the Midlothian Single Plan, the council and its partners have agreed four key priorities:
- Individuals and communities have improved health and skills for life, learning and work
- No child or household living live in poverty
- Significant progress is made towards net zero ambitions by 2030
The council’s political groups take these priorities into account when working on their budget proposals but the council’s financial challenges mean that they have to make difficult choices.
Q. What is the council doing differently to cut costs?
A. Last year councillors approved a new Transformation Blueprint and supporting Medium Term Financial Strategy outlining the actions the council will take under five key themes:
- ‘Follow the money’
- 21st century workforce
- Workplaces of the future
- Income generation and commercialisation
- Multi-agency transformation
Further details can be found on the 'our budget' consultation page but, examples under 'Follow the Money' include reviewing contracts, commissioned services and digital solutions to make sure they are the best value possible and will invest in preventative measures to support those most in need, including care-experienced children and young people.
Q. Are other council areas facing similar financial pressures to Midlothian?
A. Yes. For example, East Lothian Council is currently facing a £64.866 million five year budget gap, including IJB pressures.
Q. How can residents and community groups have a say on how the council spends its money?
A. Fill in our budget consultation.
Q. Why are you spending money on Destination Hillend when you need to make savings?
Destination Hillend has been funded from the capital budget (used to pay for outgoings like building projects) with the money largely coming from borrowing.
The Alpine Coaster is now up and running and fully booked until the end of November. However, further spending is on hold while we revise a business case to make sure all further development at the site is affordable.