Scotland’s local councils have splashed out £63 million on golden goodbye payments to departing high earners since 2022, even as they face severe budget pressures and push through steep council tax rises. This spending, revealed in recent annual accounts, highlights a stark contrast between lavish exit deals for top staff and the financial hardships hitting everyday residents and services.
Rising Costs Amid Financial Strain
Local authorities across Scotland are under immense pressure from funding shortfalls, leading to service cuts and higher taxes for households. Yet, figures show a sharp increase in exit packages, jumping from £12.6 million in the 2022-2023 financial year to £21.9 million in 2024-2025. Critics argue this money could have eased burdens on frontline services like education and waste collection.
Many councils blame the Scottish Government for inadequate funding, which has forced tough choices. For instance, some areas have frozen hiring or reduced community programs to balance books. Despite these claims, the golden goodbye totals raise questions about priorities in public spending.
The trend ties into broader economic challenges, including inflation and post-pandemic recovery costs. Recent reports indicate that council tax bills rose by an average of 5 percent in 2025, adding hundreds of pounds to family expenses in places like Glasgow and Edinburgh.
Top Spenders and Key Examples
North Lanarkshire Council led the pack with £15.4 million spent on these packages since 2022, affecting dozens of senior roles. Glasgow City Council followed closely, dishing out £11.3 million in similar deals. Other notable spenders include councils in Edinburgh and Aberdeen, each exceeding £5 million over the period.
These payments often include severance, pension boosts, and other perks for executives leaving due to restructuring or retirement. Public outcry has grown, with residents pointing out how such sums could fund essential repairs to roads or schools instead.
- North Lanarkshire: £15.4 million, highest total, linked to major staff overhauls.
- Glasgow: £11.3 million, amid city-wide budget cuts.
- Edinburgh: Over £6 million, despite collecting millions in overpaid council taxes that remain unrefunded.
In one case, a single exit package in North Lanarkshire topped £200,000, sparking debates on value for money.
Political Backlash and Public Reaction
Politicians from various parties have slammed the expenditures as tone-deaf. Scottish Conservative figures called it a slap in the face to taxpayers facing higher bills, while opposition voices demand stricter oversight on public sector pay.
Social media buzz reflects widespread anger, with users sharing stories of deteriorating local services. Posts highlight how councils claim poverty yet find funds for elite perks, fueling calls for transparency.
This issue echoes past controversies, such as severance deals for former government ministers. In 2025, similar payouts to exiting MSPs drew criticism for rewarding perceived failures, adding to the narrative of misplaced priorities in Scottish politics.
Experts suggest reforming exit rules could save millions, proposing caps on packages tied to performance metrics.
Impact on Households and Services
The financial strain shows in everyday life, with council tax hikes straining family budgets. In 2025, most Scottish households saw no freeze on rates, unlike brief pauses in prior years, leading to average increases of 4 to 6 percent.
Services have suffered too. Libraries have shortened hours, and road maintenance backlogs grow. A recent survey found 60 percent of Scots feel local services have worsened, linking it directly to funding gaps.
| Council | Total Golden Goodbye Spending (2022-2025) | Average Council Tax Increase (2025) |
|---|---|---|
| North Lanarkshire | £15.4 million | 5.5% |
| Glasgow | £11.3 million | 6% |
| Edinburgh | £6.2 million | 4.8% |
| Aberdeen | £5.1 million | 5% |
| Overall Scotland | £63 million | 5% average |
This table illustrates the disconnect between lavish payouts and the tax burdens on residents.
Calls for Reform and Future Outlook
Advocates push for immediate changes, including independent audits of exit deals. The Scottish Government has hinted at reviewing local authority finances in 2026, potentially introducing guidelines to curb excessive spending.
Looking ahead, with elections looming, this scandal could influence voter sentiment. Analysts predict tighter budgets in the coming year, making efficient use of funds even more critical.
What do you think about these golden goodbye payments? Share your views in the comments below and spread the word on social media to keep the conversation going.
