Save local council jobs and services by asking the UK Treasury to Drop the Debt on pre-devolution loans!
Local councils have faced increased cuts from both the UK and Scottish governments. This comes at a time when costs are rising in the form of caring for an ageing population, economic stagnation and resultant health problems, etc.
In order to meet these demands, councils have had to borrow more to sustain basic public service provisions (eg care facilities, schools, etc). And the UK Treasury is profiting from these loans as the Public Labour Works Board gains an extra 1% on top of the current gilt rate.
And that’s only the post-devolution rate! The rate is doubled on pre-devolution rate which currently lies at an 8% interest rate. 10% of local council tax is merely fulfilling pre-devolution debt liabilities. In total, this counts as approximately £2.45billion in 2016, with previous debt payments already accruing £3.3billion since 1998.
Unite the Union Scotland has called for a debt amnesty of all pre-devolution debts so that Scotland’s local councils can keep jobs and continue to provide public services to all who live here.