Local governance review: joint statement March 2026

Since the launch of the Local Governance Review, Scottish Government and Local Government have worked in partnership to better understand what is required to strengthen local democracy through greater functional, fiscal and community empowerment to put influence and power in the hands of communities. 

As we face increasing uncertainty in society it has never been more important to focus on enhancing local democracy. This is central to how everyone in our communities can have their say, help make the right and sometimes difficult choices together and ensure we are collectively directing resources to priorities that communities set.  

This joint statement re-affirms our shared commitment to bringing decision-making closer to communities, sharing power and resources to ensure that services are designed and delivered to suit the needs and support the aspirations of Scotland’s communities. When people have a real say in decisions that affect them, services become more responsive, more trusted and can be preventative. Empowering and enabling community-led solutions is key to the reform of public services – outcomes improve when solutions are tailored to local needs and circumstances. 

In order to realise this vision, the way in which we make decisions has to change. Our commitment to the principle of subsidiarity means that we will support decisions to be made as close as possible to where they will have effect. This means that some decisions will be best taken by communities in the places they live and call home, decisions over the design of services have to be informed by local needs, and there are areas where decisions are best taken at a regional level through regional collaboration, for example to support inclusive economic growth. This commitment to subsidiarity reflects the Verity House Agreement, which underpins the relationship between Scottish Government and Local Government by establishing that decisions should be local by default and national by agreement. We will ensure that proposals for governance reform at community, local and regional levels are strategically aligned to achieve the changes we want to see and our collective ambition through the National Performance Framework of the type of Scotland we want to live in.   

Our engagement through Democracy Matters has demonstrated the strong desire that communities have for greater influence, and where possible control, over the decisions that affect them most. To progress this ambition, we have worked with community and equalities organisations as well as the wider public sector to design proposals that can enhance democratic participation and the role of communities in local decision-making. These proposed reforms, published alongside this statement in the Route Map to Reform, will strengthen the rights and powers communities have to take decisions for themselves; ensure that the design and delivery of public services and spending of public money responds to the ambitions of people locally; and ensure that community governance arrangements are accessible, inclusive and diverse.  

We are committed to ensuring continued joint work to develop local governance arrangements designed to facilitate deeper integration across key public services and with communities. Building on progress in developing models for single authorities in Argyll and Bute and the Western Isles, we will continue to work with Local Government and health partners in those geographies to support further work to develop and refine governance proposals that best suit the needs of those communities and will develop plans for implementation. We will also support partners in Orkney to develop and transition to delivery their place-specific approach to reform. The development of Memorandums of Understanding or other forms of written agreements will be explored where local leaders can demonstrate this would further enable them to proceed with confidence in implementing ambitious reforms. Lessons from this work will be shared to inform alternative local governance arrangements in other geographies.  

We will strengthen expectations of all Community Planning Partners to improve local outcomes through engaging meaningfully with communities, working across organisational boundaries, and supporting the pooling of resources. We will also drive forward place-based approaches by removing any barriers at a national level that prevent local partners from having the flexibility required to prioritise prevention, and to integrate and align services.  

Our joint commitment to reforming local governance is part of our wider ambition for greater devolution of power in Scotland including to Scotland’s diverse regions. We will unlock new powers that enable regions to drive inclusive economic growth through regional collaboration. Development of the approach will be collaborative with Local Government and wider public, economic, third and community sectors. We are proposing a flexible approach, in which regional partnerships can ask for different powers at a level that works best for them. This will create a dynamic model of implementation which recognises Scotland’s local and regional differences.  

Alongside this work the Scottish Government and COSLA published the Fiscal Framework between Local Government and Scottish Government in October 2025 and the European Charter of Local Self-Government (Incorporation) (Scotland) Bill has been approved at Reconsideration Stage on 3 March 2026. In addition, the Scottish Government will take forward secondary legislation to provide greater revenue generation; to enhance the ability of councils to innovate and explore opportunities to invest in areas such as renewable energy, tourism, regeneration, social care services, transport services and waste management services. This is the beginning of greater fiscal empowerment that helps drive place-based budgeting and decision-making that improves the outcomes for individuals, families and communities.    

Alongside this wider work on local empowerment, the Scottish Government and COSLA are taking forward a joint programme of engagement on broad council tax reform. This combines independent analysis, public consultation, town-hall events and stakeholder discussions, to build shared understanding of the issues and options for longer-term reform. The findings of this engagement will inform future consideration by the next Parliament on how council tax reform should be taken. 

Specifically, we will work together to progress the following shared priorities for the delivery of a joined-up approach to sharing power and place-based public service reform:   

• we will work with communities and public bodies in local areas to progress a phased empowerment pathway that enables the implementation of proposals outlined in the Democracy Matters Route Map for community decision-making at a pace that supports effective community and public sector transition

• we will agree a new national commitment to supporting the participation of communities within local democratic processes and decisions about public spending and service delivery, whilst continuing to provide the practical supports local authorities and the wider public sector need to put this in practice

• we will continue to support the development of place-specific alternative local governance arrangements such as Single Authority Models that support integration and the delivery of services that meet the needs of local communities. This will include working with Local Government and health partners to refine their proposals, confirming routes to implementation and shadow arrangements, and supporting a process of widespread engagement over 2026-27, in particular with local communities and relevant workforces  

• building on Scottish Government’s commitment to introduce enabling legislation in the next Parliament to allow regional partnerships to seek legal status and unlock new powers, we will work together and with wider regional stakeholders to design arrangements that are locally-led and help unlock the priorities of regions   

• strengthen Community Planning Partnerships by delivering a collaborative leadership offer and reviewing existing accountability mechanisms 

• enhance simplification and place-based flexibility for local partners  

• ensuring the implementation of, and compliance with, the European Charter of Local Self-Government (Incorporation) (Scotland) Bill provisions within six months following the Bill receiving royal assent  

• we will work with Local Government and sector stakeholder representation to develop effective legislative reforms to deliver Local Government aspirations for greater commercial and functional empowerment  

• we will complete and analyse our joint programme of engagement on council tax reform, having listened to communities and stakeholders and explored options for the future of council tax. The findings will support the Scottish Parliament in deciding next steps, and in building the political and public consensus needed for credible reform 

Related Documents:

• Democracy Matters: A Route Map to Reform
• Single Authority Models: Publication on Progress