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Budget: Local Government funding

Published: 15 Dec 2016 14:15
Part of:
Economy

Public Services better off by up to £240.6 million in 2017-18

Local Government and local services will have over £240 million more available them next year, Finance Secretary Derek Mackay announced today, as he unveiled a package of increased investment in councils, schools, social care services and the potential for councils to raise additional revenue from the Council Tax.

Outlining the 2017-18 Local Government settlement as part of the Scottish Government’s Draft Budget, Derek Mackay said that the £111 million of additional Council Tax revenues expected to be raised from reform of the upper bands will be available to be spent locally. He announced the Scottish Government will use its own resources to fund £120 million going to schools to close the attainment gap.

The overall package includes total revenue support of £10,252.9 million, including £88 million to maintain the pupil to teacher ratio nationally and secure places for all probationers who require one under the teacher induction scheme. The Scottish Government will add additional funding and free up councils to raise additional revenue by:

  • Providing £107 million from the NHS to support Social Care Services and pay the Living Wage for Social Care workers
  • Allowing councils to retain £111 million from the reform of Council Tax multipliers for higher value homes
  • Provide the freedom to raise the Council Tax for all band homes by up to 3%, raising up to £70 million if councils choose to do so

In total this package will provide local government and local service with up to £240.6 million in additional funding and revenue.

Each of Scotland’s 32 local authorities will be required to formally agree to a set of joint commitments with the Scottish Government and in return will receive the full funding package.

Mr Mackay said:

“Today’s budget delivers a strong settlement for local government. The measures I have announced today mean that the total support from the Scottish Government and through local taxation provides an increase in spending power on local government services, not of £59.6 million, but of £240.6 million or 2.3 per cent.

“Local government will receive £120 million from central government to fund our shared ambitions to close the attainment gap.

“In addition we will maintain councils’ share of capital spending with an increase of £150 million compared to 2016-17.

“Councils will keep the full value of the revenue from Council Tax re-banding – every penny raised locally will be spent locally as councils see fit.

“And local authorities will also be free to increase the Council Tax generally by up to 3% next year, generating - if they so choose - a further £70 million.

“Last year, we transferred a quarter of a billion pounds from the NHS to support health and social care partnerships. I can announce today that on top of that transfer, we will provide additional funding of £107 million from the NHS next year.

“This additional funding will deliver the Living Wage for social care workers and protect overall investment in these crucial services.

“This will secure a total of £8bn for health and social care, ensuring that people have access to the right care, at the right time and in the right place.

“This additional investment in social care means that, in the coming year, there will not be an overall reduction in the funding provided by the Scottish Government to support Local Government services.

 “This is a settlement which invests in education, invests in social care and invests in local services.”

Background

 As part of the consultation process now underway adjusted allocations (tabled below) have been issued to local authorities * December 16, 2016.

Local Authority

Distributable Funding

2017-18 Additional Council Tax Reform Income

Total Support for Services

 

£m

£m

£m

Aberdeen City

342.775

5.911

348.686

Aberdeenshire

430.405

8.326

438.731

Angus

205.129

1.725

206.854

Argyll & Bute

203.887

2.376

206.263

Clackmannanshire

97.116

0.952

98.068

Dumfries & Galloway

297.343

2.479

299.822

Dundee City

308.555

1.425

309.980

East Ayrshire

233.189

1.568

234.757

East Dunbartonshire

187.301

4.576

191.877

East Lothian

176.410

2.854

179.264

East Renfrewshire

179.448

4.123

183.571

Edinburgh, City of

772.796

16.129

788.925

Eilean Siar

102.743

0.142

102.885

Falkirk

285.202

2.490

287.692

Fife

648.552

6.368

654.920

Glasgow City

1343.172

7.217

1350.389

Highland

464.102

4.816

468.918

Inverclyde

168.695

1.277

169.972

Midlothian

158.280

1.815

160.095

Moray

160.450

1.134

161.584

North Ayrshire

295.314

1.915

297.229

North Lanarkshire

625.256

3.874

629.130

Orkney

72.838

0.171

73.009

Perth & Kinross

256.185

4.533

260.718

Renfrewshire

313.429

3.321

316.750

Scottish Borders

214.891

2.809

217.700

Shetland

86.092

0.188

86.280

South Ayrshire

204.446

2.871

207.317

South Lanarkshire

568.784

5.750

574.534

Stirling

171.979

3.529

175.508

West Dunbartonshire

190.555

1.018

191.573

West Lothian

315.935

2.861

318.796

 

     
Scotland 10,081.253 110.543

 

10,191.796