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I have a quick supplementary on teacher numbers. When I spoke to 31 local authorities, one of the issues that came up was ring fencing and teacher numbers, but I have also heard from COSLA and the Scottish Government that a piece of work is being done to have a look at that and see whether changes can be made. Are you aware of that work and, if so, can you give us an update on it?

My next question is for COSLA. Its submission blames the council tax freeze for the pressure on council budgets. How confident are the witnesses that the Scottish Government will not try to implement another council tax freeze next year? If it did so, what would be the financial implications for local government?

Thank you.

Good morning. Your submission states that the use of ring fencing puts further pressure on councils, which are

“legally required to set a balanced budget”.

Are councillors confident that we will see further reductions in ring fencing this year? Also, does COSLA believe that there are any good reasons for ring fencing of funding? Katie Hagmann said that good engagement is going on right now between the Scottish Government and local government, so it would be good to hear from you about whether there are good reasons for ring fencing, as well.

It does. Thank you.

Thank you, convener. Last week, it became public knowledge that the UK Government had opposed the £70 million rural growth deal for Argyll and Bute, which leaves it being the only part of Scotland without such a deal in place. The deal was of great importance to Argyll and Bute because it included housing, developments and facilities for business and tourism. What impact might the pausing of the deal have on the area? What steps do witnesses suggest the Scottish Government should take to mitigate that?

Good morning. It is the Mercat group’s view that the Scottish Government’s decision to freeze council tax had an impact on the financial sustainability of councils. I ask the witnesses to explain that statement. Local authority executives expressed concerns to me—I have met with 31 councils—that the freeze pushed their budgets to the limit. What would be the impact on local government finances if a similar policy were to be pursued next year?

I thank the witnesses for their responses. I have one more question. Last week, the Local Government Information Unit told us that ring fencing is a particular issue for Scottish local government. Should the Scottish Government continue with ring fencing in this year’s local government settlement?

Abdool Kara, I will touch on pay in England. Last week, we had evidence that councillor pay can be a barrier in Scotland, especially to ethnic minorities, women and people who have a disability. That means that they cannot be councillors and that we, unfortunately, sometimes do not have representation from all backgrounds.

Is there anything in England that can help? Should councillor pay be agreed yearly, three yearly or five yearly? Are you able to give us an example that we can work from? I mean a good example, obviously.

Last week, the committee took evidence about the fact that lower pay for councillors is a barrier to many people, including people from ethnic minorities, disabled people and women. Budgets are tight, so how do we balance high levels of public service and adequate council pay? Do you have a view on that, Jo Armstrong?