Ring-fenced money is essential, say campaigners
By Judith Duffy and Rob Edwards

PLANS to allow local authorities to decide on their own spending priorities could create inequalities in services across Scotland, politicians and campaigners have warned.

As part of the Scottish government's concordat agreement with local authorities - which delivered a key SNP manifesto pledge to freeze council tax - traditional "ring-fencing" of money for certain areas has been scrapped to allow councils more flexibility.

But the move has prompted charities to voice concern over the equitable future provision of mental health and domestic abuse services across Scotland. It is also feared that targets to boost recycling could be breached and more incinerators be built, because council spending on waste will no longer be ring-fenced.

Professionals, politicians and environmental groups - and ministers' own green watchdog - are all worried that the success of Scotland's fivefold increase in recycling municipal waste could be lost as council leaders opt to spend money on education, transport or social work instead.

"There is widespread concern over the loss of ring-fenced funding for local authority waste," said John Ferguson, waste manager with the Scottish Environment Protection Agency.

"This concern relates to the potential loss of momentum in local authority performance figures for recycling and diverting waste from landfill."

The Chartered Institution of Wastes Management (CIWM), which represents more than 7000 waste professionals in the UK, has expressed similar fears. "Our concern is that the new funding arrangement could result in a substantial drop in funding for recycling and sustainable waste management," said CIWM's Scottish chairman, Professor Jim Baird.

The Scottish government has said that it is committed to a "zero waste" strategy, but has yet to decide on targets for increasing recycling. The Sunday Herald understands that a target of 70% recycling by 2020 is under consideration.

Labour's environment spokeswoman, Sarah Boyack MSP, accused Scottish Nationalist ministers of failing to think the policy through.

"How will the SNP government be able to meet its recycling targets in the future when money for waste projects is competing with schools and roads for funding?" she asked.

Stuart Hay, policy head at Friends of the Earth Scotland, said: "Without ring-fencing council managers will have to fight extremely hard to hang on to money to improve recycling services."

Scotland's leading mental health charity has also raised concerns over the decision. Charlie McMillan, director of research, influence and change at the Scottish Association of Mental Health, said that most of its 83 community-based services had been funded through ring-fenced money known as Mental Health Specific Grants and Supporting People Grants.

"We are not saying that these will all go come April next year, but by throwing it into a pool of money, it means that the funding we rely on to provide our services may come under much more pressure," he said.

"Mental health and mental health problems already struggle to get the priority we believe they deserve."

Margaret Curran, Labour's shadow health secretary, said that the mental-health-specific grants had funded vital community services that helped to build people's confidence and self-esteem.

"It is not a case of national government versus local government, but there is a place for national programmes and we need to make sure there is a minimum service throughout Scotland," she added.

Ring-fencing is also being removed from a stream of funding that has provided a range of specialist domestic abuse housing support services, including refuge accommodation and assistance to resettle women into a new home. Lily Greenan, manager of Scottish Women's Aid, said work that had taken place in the past decade to ensure a more equitable distribution of services could be under threat.

"We are concerned that the removal of ring-fencing could potentially open up the possibility of going back to the position of having some really good services in some areas and a reduction of services in others," she said.

Councils, however, have denied that the removal of ring-fencing will negatively impact on services that had previously been "protected".

Pat Watters, president of umbrella body Cosla, said: "The only difference now is that the decision for funding will be taken at a more local level, and in my opinion local politicians are more sensitive to local circumstances than national politicians."

Health secretary Nicola Sturgeon said that mental health was receiving "more attention than ever before".

"The budget outcomes for the next three years will ensure continuity of approach and investment on mental health by NHS and local authority partners, where spend on services and improving mental wellbeing remains at record levels."