Fiscal Framework between Scottish Government and Local Government
The Verity House Agreement committed to a robust Fiscal Framework(FF) between Scottish and Local Government. In line with positive progress, and to codify current good practice, Scottish Government and COSLA have jointly agreed the FF ahead of the 2026-27 budget.
Governance
Implementation and oversight
40. The Fiscal Framework is jointly owned by the Scottish Government and Local Government. Its implementation will be overseen by the Scottish Cabinet Secretary responsible for Local Government finance[1] and the COSLA Presidential Team.
41. Consideration of its implementation and whether it remains fit for purpose should feature on the agenda of at least one high level meeting between the parties per annum under the auspices of the Verity House Agreement strategic engagement. That consideration should be informed by a joint report led by Scottish Government Officials and COSLA Officers.
Review
42. Processes and mechanisms outlined in this framework will be reviewed and updated as necessary at the outset of each Scottish Parliament, and not less than within 18 months of the establishment of a new Parliament. The Forward Work Plan will be revisited annually following the conclusion of the Budget Bill process each year.
43. It is expected that issues arising under this Fiscal Framework will normally be resolved by detailed consultations between policy officials and COSLA officers, including those responsible for Local Government relations within the Scottish Government.
44. Where agreement cannot be reached by officials and COSLA officers and political escalation is required, the First Minister and COSLA President will be invited to consider the issues at their next biannual meeting, or earlier if required.
Contact
Email: lewis.james@gov.scot