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Local Government, Housing and Planning Committee

Verity House Agreement and New Deal with Local Government

The Verity House Agreement is a partnership agreement between the Convention of Scottish Local Authorities (COSLA) and the Scottish Government “setting out our vision for a more collaborative approach to delivering our shared priorities for the people of Scotland.” It was published on 30 June 2023 and forms the first part of the new deal with local government.

The agreement can be found on the Scottish Government website.

Read the New Deal with Local Government: Verity House Agreement

Under the Verity House Agreement, COSLA and the Scottish Government have agreed three shared priorities:

  • tackling poverty;
  • just transition to net zero; and
  • sustainable public services

The Scottish Government committed to completing certain strands of work by the end of September 2023 and the Deputy First Minister wrote to the Committee on 3 October 2023 to update it as follows

Improved engagement on budgetary matters:

  • Pre-budget engagement, at both official and political level, is well underway, and will continue, in preparation for the Scottish Budget in December.

A Fiscal Framework between local and national government, of which regular budget engagement will be a key part:

  • Constructive further discussions took place in July and August, with options for different approaches being considered by COSLA, including at the COSLA Convention on 29 September.
  • Further work is expected up to the Scottish Budget with a view to reaching agreement as soon as possible.

A shared programme of activity underneath each of the three priorities:

  • This will focus on the period between now and the next Scottish Council Elections in 2027.
  • Wide-ranging and constructive discussions have taken place between local and national government officials throughout August and are continuing to be taken forward in key areas by policy leads.
  • Early conversations have taken place with Audit Scotland and the Accounts Commission Scotland to explore their role in this work.
  • Further work is expected over the coming months to deliver a robust shared programme with an outcomes and accountability framework as soon as possible.

Progress towards agreeing the fiscal framework and the outcomes and accountability framework has been slower than hoped. The Committee continues to monitor developments and intends to consider both frameworks when they become available.

Further information, including links to relevant meeting papers and correspondence can be found below.

Background

In December 2017, the Scottish Government and COSLA jointly launched the Local Governance Review and following a consultation in 2018, identified areas for the improvement.  Work on the Review was then paused due to COVID-19.

In May 2022, the Scottish Government confirmed that it would “work closely with COSLA and the Society of Local Authority Chief Executives (SOLACE) over the coming months to agree a new deal for Local Government in Scotland in advance of the next financial year.” Further information can be found in the Resource Spending Review.

Read the Resource Spending Review

The Scottish Government then wrote to the Committee in November 2022 stating that the New Deal for local government would include:

  • A Partnership Agreement which provides the framework for policy specific agreements, based on a shared value-based overarching agreement on outcomes and accountability.
  • A Fiscal Framework for local government, which is intended to establish agreed ways of working in the fiscal relationship, supporting greater transparency and accountability.
  • It also encompasses the Local Governance Review and a commitment to establish a working group to explore effective deliberative engagement on local government funding sources, including Council Tax.

In May 2023, the Committee jointly hosted an event with the Scottish Parliament’s think-tank, Scotland’s Futures Forum, to further consider the future relationship between central and local government in Scotland.

This conference brought together MSPs and a range of stakeholders from central and local government, academia, and the public, private and third sectors to explore what is required to improve the relationship between local and central government.

Central and Local Government: Building for the Future Event Report

In summer 2022, the Committee asked SPICe researchers to provide a briefing on Comparative research on local government and fiscal autonomy across Europe.

Comparative research on local government and fiscal autonomy across Europe


Verity House Agreement stocktake

The Scottish Government and COSLA jointly considered the first year of implementation of the Verity House Agreement and published a stocktake report on 21 November 2024.

Verity House Agreement: stocktake - one year on

Engagement

The Committee visited a range of local authorities to hear their views.

In June 2023 the Committee visited Orkney Islands Council.

Read a summary of the visit to Orkney (108KB, pdf) posted 31 October 2023

In October 2023 the Committee visited Highland Council.

Read a summary of the visit to Highland Council (208KB, pdf) posted 03 November 2023

In November 2023 the Committee visited Cumbrae, North Ayrshire.

Read a summary of the visit to Cumbrae (114KB, pdf) posted 19 September 2024

Correspondence

The Committee has sent and received the following correspondence during the inquiry:

Verity House Agreement

A letter from COSLA, 8 July 2024

Local Governance Review and Community Empowerment

A letter to the Minister for Public Finance, 28 June 2024

VHA and SLARC

A letter to the Cabinet Secretary for Finance and Local Government, 28 June

Community Empowerment and Local Governance Review

A letter from the Minister for Community Wealth and Public Finance, 22 February 2024

Local Governance Review and Community Councils

A letter to the Minister for Community Wealth and Public Finance, 22 January 2024

Verity House Agreement

A letter from the Minister for Local Government Empowerment and Planning, 18 July 2023

New Deal and the Review of Local Governance letter from Cabinet Secretary

A letter from the Cabinet Secretary for Social Justice, Housing and Local Government, 20 March 2023

New Deal for Local Government

Letter from the Minister for Social Security and Local Government to the Convener, 7 November 2022