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Islands Cost Crisis Emergency Fund 2023/24

Argyll and Bute Council · 10 August 2023
Back to Policy and Resources Committee — 10 August 2023 and its agenda

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ARGYLL AND BUTE COUNCIL  POLICY AND RESOURCES
COMMITTEE 
DEVELOPMENT AND ECONOMIC
GROWTH 
10 AUGUST  2023 
ISLANDS COST CRISIS EMERGENCY FUND 2023/24 
1.0 EXECUTIVE SUMMARY 
1.1 The Island Cost of Crisis Emergency funding, which aims to help island
authorities take urgent action to support households through the cost of living
crisis, was set up in December 2022. In 2022/23 £1.4 million funding was
allocated. This year an additional £1 million funding has been identified for the
2023-24 financial year: Financial support for islanders - gov.scot
(www.gov.scot). The funding will be distributed to the six Local Authorities
with responsibility for islands through the 2023/24 Local Government
Revenue Grant. It brings the total support provided by the fund to £2.4 million. 
1.2 This funding is for 2023/24 financial year only, and will be allocated via a grant
offer across the six local authorities using 100% population basis as
recommended by the joint Scottish Government/COSLA settlement
Distribution Group approved by the COSLA political Leaders. 
1.3 The allocation to Argyll and Bute for 2022/23 was £197,000 and the funds
were distributed as detailed in Table 1 below. The allocation for 2023/24 is
£141,000 however at the time of writing formal notification is still awaited in
regard to any details of the fund.   
1.4 Local authority decisions on where funding will be directed should be based
on their local knowledge and understanding of the impacts of the cost crisis
on their islands. The fund should be used to target island areas only, by
providing immediate help to those who are struggling most, either through
existing schemes and/or other new support where need is greatest. 
1.5  Given the critical nature of the fund it is important that the funding reaches
communities as quickly as possible. In regard to this members may be
minded to support the same initiatives as were agreed last year focusing on
Love Local cards, free school meal top ups and grants to 4 island foodbanks
as detailed in Table 1.  It should however be noted that this year there is
£56,000 less available to distribute and therefore there will need to be
reduction made in one or more of the 3 areas of support or a change in the
focus. In addition, the formal letter of offer has still be received and details
checked in regard to any specific requirements.

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2.0 RECOMMENDATIONS 
It is recommended that the Policy and Resources Committee:- 
a.   Note the funding announced by the Scottish Government as part of its
Emergency Budget Review for 2023/24 financial year for Local
Authorities with responsibility for islands; and 
b.   Agree that arrangements for the fund be based on funding to support
similar initiatives to those agreed for 2022/23 and detailed in Table 1 but
that the specific details and funding split be delegated to the Executive
Director with responsibility for Development and Economic Growth in
consultation with the Leader, Depute Leader, Leader of the largest
Opposition Group and the Policy Lead for Islands to ensure that the
support reaches communities as quickly as possible.   
3.0  DETAIL 
3.1 The Scottish Government has announced that there will be an allocation of £1
million Island Cost of Crisis Emergency funding for 23/24 and this will be
distributed across the six Local Authorities with responsibility for islands. 
3.2  The funding is for the 2023/24 financial year only. The fund of £141,000 to Argyll
and Bute will be paid as a redetermination of the General Revenue Grant
during the last 2 weeks in March 2024. The formal letter of grant has still be
received. 
3.3  As members will recall the Scottish Government first provided Island Cost of
Crisis Emergency funding in 2022/23. The allocation for Argyll and Bute in
22/23 was £197,000. Policy and Resources Committee in December 2022
agreed to delegate the arrangements for Argyll and Bute’s allocation of the
22/23 funding to the Executive Director with responsibility for Development
and Economic Growth in consultation with the Leader, Depute Leader, Leader
of the largest Opposition Group and the Policy Lead for Islands the allocation
was agreed as detailed in the table below:-   
Table 1 ICCEF 2022/23 Distribution 
Argyll and Bute Council Love Local
Giftcards 
£149,280
Argyll and Bute Council Love Local
Giftcards Fee
£5,832.85
Food Bank Grants  £27,550.75
Free School Meal Top Ups £14,336.40
TOTAL IECCF 22/23 £197,000

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3.4 Members may wish to support the same initiatives as last year however as there
is a reduction in the funding allocation for 2023/24 of £56,000 changes will need
to be made in regard to each specific allocation or a change to the focus. In this
regard a delegation is sought that would allow sufficient time to determine what
is possible with the funding available and the details of the allocation as well as
allow receipt of the formal letter of offer and check any additional requirements. 
4.0 CONCLUSION 
4.1 The £1 million Islands Cost Crisis Emergency allocation will support those on
islands facing even more significant cost of living challenges.  Estimates indicate
that Islands are facing around 20% to 66% higher costs of living than the UK
average.  High fuel costs, a colder climate and the lack of consumer choice is
also intensifying the impact of the cost crisis.  Argyll and Bute Council’s share of
the fund is £141k based on our island population.  The delegation
recommended will ensure that the Council can distribute this funding as quickly
as possible, once Argyll and Bute’s allocation has been formally confirmed by
letter with all relevant criteria provided by the Scottish Government.   
5.0 IMPLICATIONS 
5.1  Policy – The Scottish Government’s £1 million Islands Cost Crisis Emergency
allocation will support those on islands facing even more significant cost of living
challenges. 
5.2  Financial – Argyll and Bute’s allocation of the £1 million fund will be £141,000. 
5.3  Legal – None.
5.4  HR – None. 
5.5  Fairer Scotland Duty: 
5.5.1 Equalities – None 
5.5.2  Socio-Economic Duty – None 
5.5.3  Islands – The Islands Cost Crisis funding announced by the Scottish
Government will help support our island communities who are facing a higher
cost of living than the UK average.  
5.6  Climate Change – If the option to continue using Love Local cards is taken
spend will be restricted to premises within Argyll and Bute.  
5.7  Risk – None. 
5.8  Customer Service – This funding will ensure the Council are supporting our
island communities and households across Argyll and Bute. 
Executive Director with responsibility for Development and Economic Growth: 
Kirsty Flanagan 
Policy Lead for Islands and Business Development: Councillor Liz McCabe

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For further information contact: 
Fergus Murray, Head of Development and Economic Growth
Fergus.Murray@argyll-bute.gov.uk 
August 2023