Highland councillors agreed to increase the rates it pays for early learning and childcare (ELC) following a bitter clash in the chamber.
The administration issued a plea for prudence, with council leader Raymond Bremner warning that the rate must be affordable for the council.
They tabled proposals to boost the hourly rate by 32p for three to five-year-olds and 53p for two-year-olds. The current rate is frozen at £5.43.
Education chairman John Finlayson said “context is everything” and the council can’t afford to commit to recurrent funding.
However, it could help providers get through the next few months. Talking about an “ethos of partnership” he added a recommendation to pay providers £3 for each nursery meal, up from £2.30. All these increases will be backdated to August 2022.
Budget leader has ‘not a clue’ of money coming from Government
Opposition leader Alasdair Christie poured cold water on the idea of partnership. He reminded the chamber that it was only last month that the council administration voted to freeze the rate it pays Highland nurseries. Today’s increase was down to political pressure from his group, he said.
Members were largely divided along political lines. The independent and SNP administration spoke about the challenging financial situation facing the council.
The leader remarked that the UK Government has had “more cabinet changes than an Ikea showroom”. He said political disruption and an economy in freefall have had a huge impact on local government finance.
In the same vein, budget leader Derek Louden said he had “not a clue” how much money the council would get from the Scottish Government. This prevents Highland Council from making long-term financial commitments, he said.
Many members pointed out that Highland Council’s other partners do not enjoy the same additional support that was so hard-won by the nurseries sector.
Opposition calls for better partnership working
The opposition accused Highland Council of having double standards. Councillor Andrew Jarvie for the Conservatives said the council couldn’t run its own ELC services on £5.75 per hour.
He challenged the council to “apply a fraction of the pressure” to its own budgets that it applies to its partners. He further accused the council of using the partnership as a “lovely fuzzy phrase” but said Highland nurseries paint a different picture.
The issue of partnership working was a flashpoint for many members. Councillor Richard Gale said ELC providers feel more like contractors than partners, while Molly Nolan said “trust is utterly eroded“.
Councillor Helen Crawford said members had once again received a flurry of letters from ELC providers. She asked Highland Council leaders if they genuinely believe they have the informed consent of Highland nurseries.
Furthermore, Ms Crawford said the administration was operating behind closed doors. “Please start speaking to us,” she told the leader. Several members of the opposition said there was not sufficient collaboration between parties or outwardly with external partners.
Interim rate rise will help the sector, says administration
However, the administration insisted it had found a sensible compromise. The rate of £5.75 is “bang on the national average” said Calum Munro.
The increase would help ELC providers in the short term, with full proposals coming forward in the spring, said the education chairman.
Mr Bremner summarised the crux of the problem. “Our partners need to work with us,” he said. “Every penny we spend that we can’t afford puts our services at risk.”
Despite the heated debate, opposition parties did not table a formal amendment to Highland Council’s proposal for nursery rates.
As such, the council unanimously agreed to provide an enhanced hourly rate – plus extra meal allowance – until March 2023.
Mr Jarvie secured agreement for a review report to come to the education committee next month. A full and detailed paper on the ELC review is expected in the spring.
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