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Publication - Publication

Scotland's Budget: Draft Budget 2017-2018

Published: 15 Dec 2016
Part of:
Economy
ISBN:
9781786526342

The Scottish Government's draft spending plans for 2017 to 2018.

186 page PDF

3.0MB

186 page PDF

3.0MB

Contents
Scotland's Budget: Draft Budget 2017-2018
Chapter 9 Communities, Social Security and Equalities

186 page PDF

3.0MB

Chapter 9 Communities, Social Security and Equalities

PORTFOLIO RESPONSIBILITIES

The portfolio is focused on our overarching aims to create a fairer Scotland, support inclusive growth, and promote community empowerment and the participation of people in all aspects of Scottish life. We have continued to prioritise funding to support a major expansion of affordable housing supply; to tackle fuel poverty and support our targets on climate change; to support the planning system; to regenerate and strengthen our communities; to support the third sector and develop social enterprise; to promote equality; to tackle poverty and develop our plans for a fairer Scotland; to mitigate the worst impacts of the UK Government's welfare changes; and continuing to develop policy and operational plans for our new social security powers.

The portfolio also incorporates the Scottish Government's funding for local authorities in Scotland, allowing them to deliver the full range of services, from education and social care to transport and planning.

OUR PRIORITIES

Creating a Fairer Scotland

Achieving a fairer and more equal Scotland is at the heart of this Government's ambitions. In October 2016 we published our Fairer Scotland Action Plan ( FSAP) with the key message that it will take all of us to build a fairer Scotland.

There are five ambitions in the FSAP: a Fairer Scotland for all; ending child poverty; a strong start for young people; fairer working lives; and a thriving third age. The action plan takes forward these ambitions via 50 concrete actions. These include introducing a new Socio-Economic Duty on public bodies, bringing forward legislation to set ambitious targets to reduce child poverty and introducing two complementary programmes - one for third sector and the other for communities activity totalling £29 million in funding, including £12.5 million from the European Social Fund, which will look at innovative approaches to combating poverty and tackling inequality locally.

We know that accessible, affordable, energy-efficient housing can contribute significantly to tackling poverty and addressing health inequalities, building confidence and capacity in communities. We will continue to focus our investment on increasing the supply of good quality, affordable housing and on enhancing the energy efficiency and quality of existing homes.

This Government is ambitious for housing with a commitment of over £3 billion to deliver 50,000 affordable homes over the five years of this Parliament. Government investment in housing, in partnership with councils, housing associations and developers, will, on average, leverage economic activity in the region of £1.7 billion per year, supporting around 14,000 jobs in the construction and related industries in Scotland.

The Draft Budget 2017-18 will make available over £100 million for our Home Energy Efficiency Programmes for Scotland ( HEEPS) in 2017-18 to help improve the condition of Scotland's homes as part of our commitment to make half a billion pounds available to support Scotland's Energy Efficiency Programme ( SEEP) over the next four years.

Funding will again be made available in 2017-18 for SEEP pilot projects that demonstrate an integrated approach to delivering area-based heating and energy efficiency programmes. Pilots will build on the first round of activity and help identify economies of scale and locally-driven models that will help even more domestic households, public sector organisations and businesses to reduce their energy bills. We will issue a call for pilots early in 2017.

We will continue to take action to protect the poorest members of our society from the most damaging effects of the UK Government's austerity policies through a range of mitigation measures including supporting advice services to ensure people are receiving all the income they are entitled to. We will provide £47 million to continue to fully mitigate the 'bedroom tax' through Discretionary Housing Payments, and sustain funding for the Scottish Welfare Fund to help as many people as possible affected by emergencies, financial crises and the effects of the UK Government's welfare cuts. Since the fund was set up in April 2013, £107 million worth of grants have been given to around 217,000 households in Scotland.

We will also continue to tackle the effects of these cuts through other means such as our £1 million a year Fair Food Fund. The fund supports projects which promote dignity and develop sustainable solutions to food poverty.

In 2017-18 we will invest over £75 million in regeneration activity that stimulates inclusive economic growth and tackles inequality in disadvantaged communities. This investment will support regeneration projects which respond to local circumstances, and increase opportunities to attract investment and jobs to disadvantaged and fragile areas and improve the wellbeing of communities.

In 2017, we will introduce a Social Security Bill setting out the over-arching legislative framework for newly-devolved powers over social security, drawing on the responses received to our recent consultation. We are committed to using these powers to create a fair social security system based on dignity and respect. This will include the reform of assessments for disability benefits, the extension of winter fuel payments to families with severely disabled children, a new enhanced Best Start Grant to replace the current Sure Start Maternity Grant, and an increased Carer's Allowance.

In addition, we want Scotland to be an open, welcoming and inclusive country, and will continue to give priority to tackling inequality and to promoting equality by investing over £20 million in organisations working to advanced equality in 2017-18. This resource will support the progression of human rights, progress work to prevent violence against women and girls, and strengthen community engagement. In order to advance equality, it is vital to empower groups experiencing discrimination and disadvantage to have a voice and influence as this will assist us in our aim to deliver true equality of opportunity for all.

Empowering People and Communities

Building on the recommendations of the Christie Commission, regeneration activity seeks to devolve power to communities, empowering them and involving local residents in the process because, most of all, regeneration is about people themselves.

People's life chances and opportunities are directly affected by inequalities in the power and influence they have over matters that affect their lives, and in the way that public services help them to achieve what they need. The 'Programme for Government' aims for a fairer Scotland and to support economic growth through empowering people and achieving greater democratic equality.

As part of our approach to prevention, we want communities across Scotland to be able to participate in, and make decisions on, the priorities that matter most to them. In 2017-18 we will continue to invest in the Empowering Communities Fund, to ensure that communities are well equipped and supported to deliver long-term solutions that tackle poverty and inequality on their own terms.

We will better align Scottish Government funding for communities to simplify accessibility and improve our support for communities in their efforts to deliver on the priorities that matter to them.

We will be working with local government and communities on the commitment for councils to ensure at least one per cent of their budget is used for Community Choices budgeting, backed by our Community Choices Fund. This means that thousands of people will have a direct say in how millions of pounds are spent by their councils on their communities and on their priorities.

Local Government

Local government is an integral and essential element of the overall good governance of Scotland and continues to be a key partner in the Scottish Government's transformative programme of public service reform. This funding package builds on the priorities laid out in the 2016 'Programme for Government', and continues to be focused on delivery of our joint priorities to deliver sustainable economic growth together with protecting frontline services and the most vulnerable in our society.

In 2017-18 we will make available to local government a total funding package amounting to £10,131.1 million. This figure includes both the general revenue and capital grant funding, specific revenue and capital grants as well as the Government's estimate of non-domestic rate income to be collected during 2017-18, which local authorities collect and retain. The economic determinants underpinning the non-domestic rates income estimates have been agreed by the Scottish Fiscal Commission. The Scottish Government guarantees each local authority their formula share of the combined general revenue grant and non-domestic rate income funding allocations.

In addition to this direct funding to local government we see health as being about all the services that help people to maintain their wellbeing, not just frontline NHS services. In view of this, £107 million will be transferred from NHS Boards to Integration Authorities to support continued delivery of the Living Wage, sustainability in the social care sector, disregarding the value of war pensions from financial assessments for social care for those in receipt of war pensions and pre-implementation work in respect of the new carers legislation. This is additional to the £250 million added in the 2016-17 Budget, bringing the total support available through the Integration Fund to £357 million. This brings our total additional NHS contribution to social care to almost £500 million. NHS contributions to Integration Authorities for delegated health functions will be maintained to at least 2016-17 cash levels. The £10 million included for sleepovers will be reviewed in year to consider its adequacy with a commitment to discuss and agree how any shortfall should be addressed. To reflect this additional support, local authorities will be able to adjust their allocations to Integration Authorities in 2017‑18 by up to their share of £80 million.

We will also continue to take forward our ambitious programme of educational reform, drawing on the widest range of performance information ever gathered on Scottish education through the National Improvement Framework. We will continue to implement the key improvement activities highlighted in our National Improvement Plan, in particular those related to reducing bureaucracy in our schools and freeing teachers to teach. Our governance review will conclude early in 2017 and its conclusions will inform the system changes required to deliver our commitments to empower schools. In recognising that teachers are central to achieving our ambition of delivering excellence and equity in Scottish education we will continue to commit an overall funding package of £88 million in the local government finance settlement to support both maintaining the pupil to teacher ratio at a national level and ensuring that places are provided for all probationers who require one under the teacher induction scheme. In order to support delivery the Scottish Government will work with local government to monitor these commitments at an agreed mid-point in the year.

Every council area will also benefit from the additional funding through the Attainment Scotland Fund, which we have allocated from the resources available to the Scottish Government at a national level, and which will be targeted at closing the attainment gap. We have gone further than our 'Programme for Government' commitment and will increase the additional resource to be used at the discretion of schools through the Attainment Scotland Fund from £100 million to £120 million in 2017-18, as part of the £750 million investment over the life of the Parliament. This will be paid as a ringfenced grant as part of the local government settlement. This is on top of the existing £50 million Attainment Scotland funding, which is outwith the local government finance settlement, that will continue to provide targeted support for those authorities and schools supporting children and young people in greatest need.

The individual local authority fair shares of this total funding package are now the subject of consultation with local government before being put to the Scottish Parliament for final approval.

For 2017-18 each of Scotland's 32 local authorities will be required to formally agree to the joint priorities agreed between the Scottish Government and local government and in return will receive the full funding package. These include:

  • a £357 million transfer from the NHS to Integration Authorities to ensure improved outcomes on health and social care;
  • the additional £88 million to maintain the pupil to teacher ratio nationally at 2016 levels and secure places for all probationers who require one under the teacher induction scheme; and
  • flexibility for local authorities to increase council tax levels by up to 3 per cent, worth an estimated £70 million.

Business Rates

The Scottish Government remains committed to competitive business rates, underlined by proposals in this Draft Budget in the context of the 2017 revaluation. We propose matching the English poundage, representing a 3.7 per cent drop in the tax rate. We will expand the Small Business Bonus Scheme by significantly raising the eligibility threshold, so that the scheme lifts 100,000 properties out of rates altogether and continues to provide better support for SMEs than elsewhere in the UK. Other rates reliefs will continue, with renewables and rural reliefs being expanded. This improved package of reliefs will mean that over half of rateable properties pay nothing. The large business supplement will continue at the current rate, but will be applied at a higher threshold so that fewer properties (under one in ten) will be affected. We are not proposing transitional arrangements to phase in changes in liability due to the revaluation, as this would benefit a few large utility companies at the expense of smaller ratepayers. Further details are set out in Local Government Finance Circular No. 9/2016, published alongside the Draft Budget, and Assessors' provisional revaluations are also now available at www.saa.gov.uk. A separate report on the revaluation will be published in due course. Looking forward, we have committed to respond quickly to the ongoing external review of business rates, led by Ken Barclay, once it concludes in Summer 2017.

Council Tax

The Government's reforms to council tax, that build on the recommendations of the Commission on Local Tax Reform, are set in legislation now approved by Parliament. The reforms will protect household incomes, make local taxation fairer and ensure local authorities continue to be properly funded while becoming more accountable.

From April 2017, there will be moderate increases to council tax for properties in bands E, F, G and H. Households on lower incomes living in these higher value properties will be entitled to apply for relief from these changes. The package of reform also includes a 25 per cent increase to the child allowance within the Council Tax Reduction Scheme, benefiting up to 77,000 households by an average of £173 per year and helping nearly 140,000 children.

All of the additional council tax income, estimated at £111 million in 2017-18, raised by the reforms we have implemented, will be retained in full in each local authority area and decisions on the allocation of that funding will be for councils themselves to take based on their own local needs and priorities. Additionally, councils will have the option of offering no discount to the council tax charged for second homes, arming them with another lever to encourage better use of housing stock in their areas.

2016-17 was the ninth consecutive year of the council tax freeze. This will be lifted from 2017-18, when councils may choose to increase council tax up to a maximum of three per cent. This local discretion will preserve the financial accountability of local government, whilst potentially generating up to £70 million.

These are the first steps, and the Scottish Government is committed to further engagement as it seeks to make local taxation as a whole fair and progressive.

Table 9.01: Spending Plans (Level 2)

Level 2 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Housing 707.2 715.2 739.0
Social Security 74.3 1.4 95.9
Social Justice & Regeneration 56.5 60.5 59.2
Scottish Housing Regulator 3.7 3.7 4.0
Equalities 20.3 20.9 20.3
Third Sector 24.5 24.3 24.5
Office of the Scottish Charity Regulator 3.0 3.0 3.0
Governance, Elections & Reform 1.7 1.5 1.2
Planning 4.1 4.4 4.1
Local Government 9,935.0 10,094.4 9,786.7
Central Government Grants to Local Authorities 217.3 218.7 344.4
Total Level 2 11,047.6 11,148.0 11,082.3
of which:
DEL Resource 6,959.6 7,034.2 6,991.4
DEL Capital 1,064.0 1,089.8 1,225.6
Financial Transactions 255.5 255.5 259.5
AME 2,768.5 2,768.5 2,605.8

Table 9.02: Spending Plans (Level 2 real terms) at 2016-17 prices

Level 2 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Housing 707.2 715.2 728.4
Social Security 74.3 1.4 94.5
Social Justice & Regeneration 56.5 60.5 58.4
Scottish Housing Regulator 3.7 3.7 3.9
Equalities 20.3 20.9 20.0
Third Sector 24.5 24.3 24.1
Office of the Scottish Charity Regulator 3.0 3.0 3.0
Governance, Elections & Reform 1.7 1.5 1.2
Planning 4.1 4.4 4.0
Local Government 9,935.0 10,094.4 9,646.6
Central Government Grants to Local Authorities 217.3 218.7 339.5
Total Level 2 11,047.6 11,148.0 10,923.6
of which:
DEL Resource 6,959.6 7,034.2 6,891.2
DEL Capital 1,064.0 1,089.8 1,208.1
Financial Transactions 255.5 255.5 255.8
AME 2,768.5 2,768.5 2,568.5

Housing

Table 9.03: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
More Homes 583.1 581.7 583.6
Fuel Poverty/Energy Efficiency 103.3 103.3 114.1
Housing Support 17.7 26.9 38.0
Communities Analysis 3.1 3.3 3.3
Total Level 2 707.2 715.2 739.0
of which:
DEL Resource 26.2 35.2 45.5
DEL Capital 430.5 429.5 439.0
Financial Transactions 250.5 250.5 254.5
AME - - -

What the budget does

This year's capital budget, along with the Transfer of Management of Development Funding ( TMDF) budget in the local government settlement, will enable us to deliver more quality affordable warm homes that people and our communities need. This maintains our ambitious commitment to deliver 50,000 affordable homes over the life of this Parliament, including 35,000 for social rent.

We will continue to tackle fuel poverty through our Home Energy Efficiency Programmes for Scotland ( HEEPS), with grants to local authorities to deliver Area Based Schemes and support available to vulnerable households through our Warmer Homes Scotland scheme. Funding for a further round of SEEP pilots will also be made available. A total of £74 million capital funding will help over 14,000 households heat their homes more affordably. We will also make available a total of £30 million loan funding through our interest-free HEEPS: Loans and Help for Homes schemes.

We will undertake a range of other housing and regeneration activities, including funding for adaptations for older and disabled Registered Social Landlord ( RSL) tenants and projects which promote best practice in dealing with homelessness and other housing issues. This budget also supports the research and analytical programme which underpins our work on housing, regeneration, social security and social justice.

In 2017-18 we will:

  • invest to deliver more affordable homes, the majority of which will be for social rent, and work with delivery partners to further develop plans to increase the supply of affordable homes;
  • continue to support home ownership through our Help to Buy and Open Market Shared Equity schemes;
  • maintain funding for the Rural and Islands Housing Funds;
  • continue to fund local authorities to provide homelessness services including temporary accommodation for homeless people (with this funding now transferred from Westminster);
  • help tackle infrastructure blockages through a flexible grant and loan fund;
  • continue to work with industry to grow the emerging Build to Rent sector in Scotland through attracting increased investment;
  • maintain funding to tackle fuel poverty and improve the energy efficiency of Scotland's homes through our Home Energy Efficiency Programmes for Scotland ( HEEPS); and
  • implement the Private Tenancies Act's provisions to give tenants in the private rented sector increased security and stability, while giving landlords, lenders and investors the confidence to continue investing in the sector.

Social Security

Table 9.04: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Scottish Welfare Fund 38.4 0.5 38.0
Discretionary Housing Payments* - 'bedroom tax' mitigation 35.0 - 47.0
Social Security Programme Costs 0.9 0.9 -
Discretionary Housing Payments* - other - - 10.9
Total Level 2 74.3 1.4 95.9
of which:
DEL Resource 74.3 1.4 95.9
DEL Capital - - -
Financial Transactions - - -
AME - - -

* In 2017-18 the Scottish Government will assume devolved responsibility for Discretionary Housing Payments ( DHPs) and a baseline transfer for £18.5 million has been agreed with the UK Government. This allows the Scottish Government to present this more transparent picture of the total spend in Scotland on mitigating the 'bedroom tax' and on other DHPs.

What the budget does

This provides funding to support some of the poorest members of our society, to mitigate the negative impacts of welfare changes and cuts as well as tackle poverty. Funding for the Scottish Welfare Fund (including administration) remains at £38 million in 2017-18, following the implementation of new review mechanisms by the Scottish Public Services Ombudsman. The budget also supports the continued mitigation of the 'bedroom tax' as well as protecting funding for Discretionary Housing Payments ( DHPs) to help those who are affected by other UK Government welfare reforms such as the Local Housing Allowance ( LHA) rate and the Benefit Cap. This follows the devolution of DHPs under the Scotland Act 2016. We are expecting further spend in 2017-18 on the developing social security programme, and this is planned to be funded from the centrally-held budget relating to Scotland Act 2016 non-tax implementation. We will also introduce our Social Security Bill following the outcome of the recent consultation.

In 2017-18 we will:

  • provide £47 million of funding to allow local authorities to fully mitigate the effects of the 'bedroom tax' with additional funding for DHPs for those affected by LHA rates and benefit cap; and
  • sustain funding to the Scottish Welfare Fund.

Social Justice and Regeneration

Table 9.05: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Fairer Scotland 8.0 6.8 6.9
Regeneration 48.5 53.7 52.3
Total Level 2 56.5 60.5 59.2
of which:
DEL Resource 25.0 29.0 24.2
DEL Capital 26.5 26.5 30.0
Financial Transactions 5.0 5.0 5.0
AME - - -

What the budget does

The budget allows us to deliver a range of actions to tackle social justice and mitigate against UK Government welfare cuts.

The budget also enables us to continue to support regeneration initiatives which respond to local circumstances, involve local people in identifying the issues and co-create solutions, address market failure, and increase opportunities to attract investment and jobs in disadvantaged areas.

In 2017-18 we will:

  • match fund £1 million for the STV appeal on child poverty;
  • support advice services in Scotland;
  • provide nearly £55 million to invest in the regeneration of disadvantaged communities;
  • invest a total of £20 million in the Empowering Communities Fund directly supporting the aspirations of the Community Empowerment (Scotland) Act 2015;
  • stimulate activity under the Town Centre Action Plan and support the implementation of the Town Centre First Principle;
  • continue to deliver the £1 million a year Fair Food Fund to develop sustainable and dignified approaches to tackling food poverty; and
  • deliver the Aspiring Communities Fund as part of the European Social Fund strategic intervention to accelerate the design and delivery of sustainable community-led solutions to poverty and exclusion.

Scottish Housing Regulator

Table 9.06: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Scottish Housing Regulator 3.7 3.7 4.0
Total Level 2 3.7 3.7 4.0
of which:
DEL Resource 3.7 3.7 4.0
DEL Capital - - -
Financial Transactions - - -
AME - - -

What the budget does

The Scottish Housing Regulator ( SHR), the independent regulator of social landlords ( i.e. local authority landlords and registered social landlords), has the statutory objective of safeguarding and promoting the interests of:

  • nearly 600,000 tenants of social landlords;
  • around 40,000 people and their families who may be homeless and seek help from local authorities;
  • around 90,000 home owners who receive services from social landlords; and
  • over 500 Gypsy/Traveller families who live on sites provided by social landlords.

In 2017-18 the SHR will:

  • regulate the housing services that social landlords deliver for tenants, homeless people and other service users; and
  • regulate the standards of financial health and governance of registered social landlords.

Equalities

Table 9.07: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Equalities 20.3 20.9 20.3
Total Level 2 20.3 20.9 20.3
of which:
DEL Resource 20.3 20.9 20.3
DEL Capital - - -
Financial Transactions - - -
AME - - -

What the budget does

Our spending on equality and human rights activities supports the drive for social justice, economic and inclusive growth, and community empowerment. In addition to supporting work on interfaith equality, religious tolerance and advancing equality for older people, this budget helps address issues of social isolation and loneliness. It also provides resource to help tackle hate crime, strengthen community cohesion, and to support the integration of asylum seekers and refugees. A significant proportion of the Equalities Budget provides resource for frontline services to tackle violence against women and girls and will support activity to address discrimination and inequality across the protected characteristics. It also builds on work in areas where Scotland is already considered to have a progressive approach, for example around growing women's representation, addressing violence against women and girls, and increasing inclusion of LGBTI communities. Following the EU Referendum, it is more important than ever that people's human rights are protected, and resource will be used to raise awareness and understanding of human rights.

In 2017-18 our budget will:

  • take forward the Gender Balance on Public Boards Bill and establish an Advisory Council on Women and Girls;
  • contribute to the implementation of Equally Safe, the Disability Delivery Plan, the British Sign Language ( BSL) National Plan and the Race Equality Framework; and
  • support engagement with communities on their priorities to continue to advance equality in Scotland.

Third Sector

Table 9.08: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Third Sector 24.5 24.3 24.5
Total Level 2 24.5 24.3 24.5
of which:
DEL Resource 24.5 24.3 24.5
DEL Capital - - -
Financial Transactions - - -
AME - - -

What the budget does

This budget helps in the drive to tackle poverty, reduce inequality and create a fairer and more prosperous Scotland. It will invest in the capacity and growth of social enterprises across Scotland, as part of the new 10-year strategy for social enterprise. It also supports the local and national third sector infrastructure, which helps to support third sector organisations in their work with individuals and communities, and local volunteering.

Scotland has a strong and dynamic third sector and this budget is maintaining our level of support to the sector. We will also work with the sector to ensure the support we provide continues to be effective, and will enable better planning for the longer term. The third sector will also have access to resources through other programmes.

In 2017-18 we will:

  • maximise the impact of the sector in reducing inequality, working with communities to tackle tough social issues at source; and giving pace and innovation to public service reform;
  • provide support to social enterprise, social finance and social investment; and
  • support work to tackle poverty and inequality through the new European Social Fund programmes.

Office of the Scottish Charity Regulator

Table 9.09: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Office of the Scottish Charity Regulator 3.0 3.0 3.0
Total Level 2 3.0 3.0 3.0
of which:
DEL Resource 3.0 3.0 3.0
DEL Capital - - -
Financial Transactions - - -
AME - - -

What the budget does

The Office of the Scottish Charity Regulator ( OSCR) is responsible for the registration and regulation of Scotland's 24,076 charities. It has a statutory function to determine the charitable status of bodies, to keep the public register of charities, and to monitor and investigate apparent misconduct.

In 2017-18, OSCR will:

  • ensure public confidence in charities through effective regulation and sharing of information;
  • support charity trustees to understand and comply with their legal duties;
  • facilitate effective management via straightforward and proportionate reporting (increasing online services where appropriate); and
  • investigate apparent misconduct in charities, taking remedial or protective action as appropriate.

Governance, Elections and Reform

Table 9.10: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Local Governance 0.6 0.6 0.5
Local Government Boundary Commission* 0.2 - -
Public Services Reform and Community Empowerment 0.9 0.9 0.7
Total Level 2 1.7 1.5 1.2
of which:
DEL Resource 1.7 1.5 1.2
DEL Capital - - -
Financial Transactions - - -
AME - - -

* Local Government Boundary Commission has been baseline transferred to Finance & Constitution in 2017-18.

What the budget does

This budget supports public service reform and provides us with the opportunity to renew partnership working with local government around the empowerment of people and the importance of place, designing modern public services enabled by efficient support systems and governance. Public services which break cycles of disadvantage to enable everyone to live and work free from prejudice, discrimination and inequality, and which work closely with local communities and each other to deliver preventative interventions, make a vital contribution to inclusive growth and improving people's lives.

This budget also includes provision for a number of important activities in relation to local government, such as operation of the Council Tax Reduction scheme and a range of analytical and statistical work.

In 2017-18 we will:

  • develop ambitious proposals for a Bill to energise local democracy by decentralising council services and democratic oversight to local communities; and
  • continue our work to raise awareness and promote the new rights for community groups that are part of the Community Empowerment (Scotland) Act 2015.

Planning

Table 9.11: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
Planning 1.8 1.8 1.8
Building Standards 0.2 0.2 0.3
Architecture & Place 1.4 1.7 1.3
Planning & Environmental Appeals 0.7 0.7 0.7
Total Level 2 4.1 4.4 4.1
of which:
DEL Resource 4.0 4.3 4.0
DEL Capital 0.1 0.1 0.1
Financial Transactions - - -
AME - - -

What the budget does

By building on the programme of modernisation, the Planning budget supports inclusive economic growth and creates high quality places for the benefit of all of Scotland's communities, in particular increasing delivery of high quality housing developments.

In 2017-18 we will:

  • continue our programme of reform to deliver a high-performing Planning system that enables housing and infrastructure delivery;
  • modernise compulsory purchase orders to ensure vacant and derelict land can be brought into use for communities;
  • deliver a programme of planning and other appeals work, examination of local and strategic development plans and compulsory purchase orders, transport and energy and other infrastructure projects;
  • build on the success of the integrated online ePlanning and eBuilding Standards service and make greater use of IT; and
  • continue to help people and organisations involved in building and development in Scotland make better informed decisions to support the creation and renewal of energy efficient, safe and sustainable buildings that will stand the test of time.

Local Government

Table 9.12: Spending Plans (Level 3)

Level 3 2016-17 Draft Budget
£m
2016-17 Budget
£m
2017-18 Draft Budget
£m
General Revenue Grant* 6,685.9 6819.4 6,557.8
Non Domestic Rates* 2,768.5 2768.5 2,605.8
General Capital Grant 480.6 506.5 623.1
Specific Resource Grants** 91.0 92.5 211.0
Specific Capital Grants*** 126.3 126.2 133.4
Total Level 2 10,152.3 10,313.1 10,131.1
of which:
DEL Resource 6,776.9 6,911.9 6,768.8
DEL Capital 606.9 632.7 756.5
Financial Transactions - - -
AME 2,768.5 2,768.5 2,605.8
Other Sources of Support****
Council Tax Reform Income - - 111.0
Health and Social Care Integration 250.0 250.0 357.0

* The Scottish Government guarantees the combined General Revenue Grant plus the distributable Non Domestic Rates ( NDR) Income figures.

** Held within other portfolio chapters.

*** Held within other portfolio chapters. The 2016-17 capital allocations take into account the reprofiling of £150 million which will be added back to the local government allocation during the period 2018-20.

**** In addition to the core settlement, local authorities will also retain all of the increased income from the council tax reforms. Support for social care services from the NHS to Integration Authorities will increase in 2017-18.

Table 9.13: Specific Grant Funding and other Local Government Funding 2017-18 (Level 3)

Level 3 2016-17
Draft
Budget
£m
2016-17 Budget
£m
2017-18
Draft
Budget
£m
Justice
Resource Specific
Criminal Justice Social Work 86.5 88.0 86.5
Communities, Social Security and Equalities
Capital Specific
Vacant and Derelict Land 7.8 7.8 9.8
Transfer of Management of Development Funding ( TMDF) 96.5 96.5 96.1
Rural Economy and Connectivity
Capital Specific
Regional Transport Partnership 16.0 16.0 20.1
Cycling, Walking and Safer Routes 5.9 5.9 7.4
Education and Skills
Resource Specific
Education Attainment Fund - - 120.0
Gaelic 4.5 4.5 4.5
Total Specific Revenue Grants ( DEL) 91.0 92.5 211.0

Total Specific Capital Grants

126.3

126.3

133.4

What the budget does

Local Government's Spending Plans 2016-17

For information purposes only, Scotland's local authorities have budgeted to spend the total resources available to them from the Scottish Government's funding and income raised locally through the council tax on services as set out in Table 9.14.

Table 9.14: Local Government Revenue Expenditure Plans 2016-17

2016-17 Budget Estimate - Net Revenue Expenditure 2016-17
Budget
£m
Education 4,825.6
Social Work 3,086.1
Roads and Transport 418.9
Environmental Services 667.6
Planning and Development Services 251.1
Culture and Related Services 560.0
Emergency Planning 3.6
Administration of Housing Benefits and Council Tax Reduction Scheme 38.6
Private Sector Housing Renewal 24.1
Housing Benefit: Rent Allowance and Rebates 18.3
Non Housing Revenue Account Housing 45.8
Homelessness 80.2
Housing Support Services 133.0
Welfare Services 10.4
Licensing (1.4)
Elections 12.2
General Grants, Bequests and Donations 5.8
Registration of Births Marriages and Deaths 5.2
Local Tax Collection (including Non Domestic Rates) 28.6
Council Tax and Non Domestic Lands Valuation 28.0
Non-Road Lighting 9.7
Corporate and Democratic Core 143.8
Statutory Repayment of Debt 1,223.1
Other Miscellaneous Services 16.7
Non Distributed Costs 84.6
Trading Services 4.2
Total Budgeted 2016-17 Net Revenue Expenditure 11,723.8

Note: Totals may not sum due to rounding.

In addition, Scotland's local authorities are planning a capital expenditure programme for 2016-17 as set out in Table 9.15. The capital resources available to them to fund this programme come from grants from the Scottish Government and its agencies, self‑financed borrowing, capital receipts from the sale of assets and other sources.

Table 9.15: Local Government Capital Expenditure Plans 2016-17

2016-17 Budget Estimate - Gross Capital Expenditure 2016-17
£m
Non Housing Revenue Account Housing 34.5
Roads and Transport 484.8
Education 830.7
Social Work 92.6
Environmental Services 154.4
Culture and Related Services 223.0
Planning and Economic Development 230.0
Trading Services 10.4
Central Services 218.7
Other Services 61.1
Capitalisation of Other Revenue Expenditure 233.3
Total Estimated 2016-17 Capital Expenditure 2,573.4

Note: Totals may not sum due to rounding.

These figures present the total budget allocated to projects in 2016-17. The final outturn figures are likely to be lower due to project slippage and expenditure being delayed into 2017-18.


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