Public Finance Magazine
Here's a report by David Scott in Public Finance magazine - the additional borrowing funds have been made available by the Scottish Government.
"Councils can borrow £65m to fund equal pay claims
Scottish councils have been given the go-ahead to borrow almost £65m to fund the costs of equal pay deals.
The funding has been approved following a decision by Holyrood to relax rules preventing councils from using capital borrowing to fund rising equal pay settlements. These are normally paid from revenue expenditure.
Details of the consents – awarded to nine of Scotland’s 32 councils for borrowing in 2010/11 – emerged as the Scottish Parliament local government committee was told that more than 44,500 claims had been lodged with employment tribunals.
At a meeting on March 17, members of the all-party committee were concerned at the delay in settling claims and in implementing a single-status agreement drawn up more than a decade ago.
One committee member, Scottish National Party MSP John Wilson, said it was a ‘scandal’ that claims had still not been settled 11 years after an agreement had been made.
Convener Duncan McNeil added: ‘There seems little, or no, momentum or impetus to settle the claims… that is our disappointment.’
Michael Cook, human resources spokesman for the Convention of Scottish Local Authorities, told the committee it was up to individual claimants and local authorities to take forward the cases.
Councils had sought more than the sum granted, he said, but the ability to borrow to fund settlements would aid progress.
The largest sum – £25.7m – has been awarded to the City of Edinburgh Council."
"Councils can borrow £65m to fund equal pay claims
Scottish councils have been given the go-ahead to borrow almost £65m to fund the costs of equal pay deals.
The funding has been approved following a decision by Holyrood to relax rules preventing councils from using capital borrowing to fund rising equal pay settlements. These are normally paid from revenue expenditure.
Details of the consents – awarded to nine of Scotland’s 32 councils for borrowing in 2010/11 – emerged as the Scottish Parliament local government committee was told that more than 44,500 claims had been lodged with employment tribunals.
At a meeting on March 17, members of the all-party committee were concerned at the delay in settling claims and in implementing a single-status agreement drawn up more than a decade ago.
One committee member, Scottish National Party MSP John Wilson, said it was a ‘scandal’ that claims had still not been settled 11 years after an agreement had been made.
Convener Duncan McNeil added: ‘There seems little, or no, momentum or impetus to settle the claims… that is our disappointment.’
Michael Cook, human resources spokesman for the Convention of Scottish Local Authorities, told the committee it was up to individual claimants and local authorities to take forward the cases.
Councils had sought more than the sum granted, he said, but the ability to borrow to fund settlements would aid progress.
The largest sum – £25.7m – has been awarded to the City of Edinburgh Council."
