COSLA manifesto calls for historic Housing Revenue Account debt to be written off
COSLA president Councillor Shona Morrison and vice-president Councillor Steven Heddle
Scotland’s councils are calling on the next Scottish Government to write off historic Housing Revenue Account debt as part of urgent measures to tackle the nation’s housing crisis.
The demand forms a key part of an unprecedented joint manifesto from all 32 councils launching today, which warns that a £647 million funding gap is undermining their ability to deliver housing alongside other essential services.
Set to be unveiled ahead of the Convention of Scottish Local Authorities (COSLA) conference in November, the new national manifesto lays out a series of urgent asks from Scotland’s local authorities. At its core is a demand for a more balanced relationship between national and local government - backed by realistic, long-term funding.
On top of the national funding gap, COSLA points to an 11% reduction in workforce since 2013 and a continued increase in demand for education, housing, social care and other essential services.
The HRA debt write-off represents a significant intervention in the housing finance debate and aims to put pressure on all parties ahead of the 2026 election to address historic financial burdens that limit councils’ ability to invest in new housing.
Another central ask in the manifesto is a £750m immediate boost to social care funding, alongside fair, flexible and multi-year funding settlements to stop the decline of vital services.
Councillor Shona Morrison, COSLA’s president, said: “We cannot continue to ignore the vital role of local democracy in delivering better outcomes for the communities we are elected to represent. For many years, local decision making has increasingly shifted away from these communities, limiting their ability to shape local priorities. This at a time when Local Government has been left to do more with less.
“This manifesto is a turning point. It sets out the clear case for a new relationship with national government - one built on parity of esteem, trust and shared ambition.”
The manifesto calls for a full commitment to the principles of the Verity House Agreement, the cross-government pledge to treat councils as equal partners in decision-making. COSLA argues this principle must move from rhetoric to reality, warning that continued top-down governance is eroding public trust and weakening services.
It also seeks reform of council tax within the next parliamentary term, the devolution of new revenue-raising powers to councils, and the ability to make local choices based on local priorities recognising the legitimate democratic mandate every council in Scotland holds to work on behalf of their communities.
Shona said: “We cannot deliver for the people of Scotland if we do not allow for local flexibility and place trust in councils and their partners to work with local people, families and communities. Our councils must have the tools to make real decisions, the powers to raise income locally, and the respect to shape services without interference.”
The manifesto also challenges what it calls “restrictive, centralised targets”, including blunt measures such as teacher numbers and delayed discharge statistics, which COSLA says undermine local flexibility and hinder real improvement.
It warns against any return to “top-down” structural reforms of local government, insisting that any change must be driven by communities and focused on outcomes, not bureaucracy.
On the workforce crisis, COSLA flags a growing shortage of skilled staff in children’s services and social care, calling for a national recruitment campaign and proper recognition of its predominantly female workforce through fair, multi-year pay deals.
Other key service-specific demands include nationalising the currently precarious secure care system for vulnerable children, and accelerated delivery of Keeping The Promise reforms.
COSLA is also urging the development of a national strategy for community cohesion - a move it says is critical amid increasing social tensions.
Councillor Morrison addde: “This is not just about councils; it’s about the kind of country we want to be. Local government is the backbone of Scotland’s communities. If we want to tackle poverty, support families, grow the economy and create fairer futures, we must start by strengthening local democracy.
“This manifesto sets out a route map to get there. We are ready to work constructively with all parties, but we will not accept anything less than parity of esteem, fairness and the power to act for our communities.”



