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Budget: Local Government funding

Published: 16 Dec 2015 14:36
Part of:
Economy

New funding to support integration of health and social care.

Reform of social care will underpin Local Government spending, today's budget revealed, as Ministers launched a fundamental realignment of spending on this essential service backed by £250 million of new investment.

The move will see fewer people going to hospital to receive care and people spending less time in hospital.

Deputy First Minister John Swinney outlined the 2016-17 Local Government settlement in the Draft Budget announcement to Parliament.

Elements of the total package include:

  • A transfer of £250 million from NHS to local authorities to support integration of health and social care
  • £70 million to continue the council tax freeze in 2016-17 for the ninth consecutive year
  • £88 million to maintain teacher numbers at 2015 levels nationally and places for all probationers who require one under the teacher induction scheme.
  • Total revenue funding for local government of £9,545.4 million.

Deputy First Minister John Swinney said:

"Local government is an essential partner in the Scottish Government's transformative programme of reforming and improving public services.

"Despite ongoing cuts to our Budget as a result the UK Government's continuing austerity programme, the Scottish Government has always treated local government very fairly, with settlements maintained on a like for like basis over 2012-16. So local government in Scotland starts from a healthy base compared to the position in England where councils faced a real terms cut in funding.

"Local Government has been a founding partner with the Government in the reform of health and social care services.

"We are embarking on a radical reform to the way social care is paid for, which is why we will go further than the annual investment of £130 million in the Integration and Delayed Discharge Funds and are committing an additional £250 million of support from the health service to support health and social care partnerships.

"This fundamental realignment of resources will build the capacity of community-based services and enact the most significant reform in health and care since the creation of the NHS in Scotland in 1948.

"It will mean that fewer people need to go to hospital to receive care, but it will also ensure that where hospital care is necessary and appropriate, that they will spend less time in hospital and return home more quickly.

"And it reveals the underlying reality of social care and health integration. The old boundary between NHS and Local Government spending – the boundary that has stymied so many attempts to improve care over decades - ceases to exist from April this year.

"So while this budget delivers a strong but challenging financial settlement for local government, we must recognise that the substantial investment in social care will support the delivery of that essential service.

"The settlement also provides for an investment of £88 million to maintain teacher numbers at 2015 levels nationally and secure places for all probationers who require one under the teacher induction scheme

"And it makes £70 million available to continue the council tax freeze for a ninth consecutive year. This means council tax will be frozen for nine consecutive years, saving the average band D household, £1,500 in total on their bill.

"Our funding proposal protects shared priorities and maintains pace of reform. I fully understand the pressures on local government budgets and we will consult with Local Government over the terms and implementation of the local government finance settlement.

"The key to our discussions is the focus on reform. Local Government are essential partners in ensuring the reform agenda leads to the creation of sustainable public services and we will agree with them how best to deliver this realignment of resources."

Local Authority

2016-17 Local Government Finance Settlement

£m

Aberdeen City

346.398

Aberdeenshire

429.733

Angus

207.241

Argyll & Bute

204.101

Clackmannanshire

97.389

Dumfries Galloway

293.110

Dundee City

297.076

East Ayrshire

229.280

East Dunbartonshire

188.665

East Lothian

174.640

East Renfrewshire

180.493

Edinburgh, City of

781.519

Eilean Siar

103.100

Falkirk

282.000

Fife

645.449

Glasgow City

1,333.943

Highlands

460.861

Inverclyde

169.242

Midlothian

156.517

Moray

164.120

North Ayrshire

276.896

North Lanarkshire

626.165

Orkney

72.760

Perth and Kinross

255.574

Renfrewshire

313.367

Scottish Borders

211.943

Shetland

87.659

South Ayrshire

205.616

South Lanarkshire

567.957

Stirling

169.477

West Dunbartonshire

189.123

West Lothian

314.366

Notes to editors

Full budget document www.gov.scot/Publications/2015/12/9056