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Publication - Statistics Publication

Scottish local government finance statistics 2015-2016

Published: 28 Feb 2017
Part of:
Public sector, Statistics
ISBN:
9781786528261

Annual publication providing a comprehensive overview of Scottish local authority financial activity.

80 page PDF

2.7MB

80 page PDF

2.7MB

Contents
Scottish local government finance statistics 2015-2016
1. Local Government Revenue Expenditure and Funding

80 page PDF

2.7MB

1. Local Government Revenue Expenditure and Funding

Day-to-day expenditure of the local authority is referred to as revenue expenditure.

Net Revenue Expenditure is the element funded through General Funding (which is made up of General Revenue Grant, Council Tax and Non-Domestic Rates).

Gross Revenue Expenditure is the total expenditure less inter/intra-authority transfers.

Gross Revenue Expenditure on Services by Funding Type

Revenue Income and Funding

  • Gross revenue expenditure on services increased by 0.7% to £15.3 billion in 2015-16;
  • Net revenue Expenditure on services increased by 0.7% to £10.1 billion;
  • Net Revenue Expenditure on Education increased by 2.7% to £4.7 billion;
  • Net Revenue Expenditure on Social work increased by 1.9% to £3.2 billion;
  • Financing and Investment expenditure increased by 2.5% to £1.5 billion;
  • General Funding increased by 0.7% to £12 billion;
  • Service income increased by 0.9% to £5.2 billion.

1.1 Total Revenue Expenditure and Funding

The two main local authority accounts are the revenue account and the capital account. The revenue account is used for day-to-day costs, such as paying salaries, bills and rent. The capital account is used to fund expenditure that creates an asset, such as building schools or new roads. Capital income and expenditure are presented in Chapter 2.

Figures are presented in cash terms throughout the publication, i.e. they have not been adjusted for inflation. Where income is presented alongside expenditure, the convention of presenting income in (brackets) and expenditure without brackets is used.

Table 1.1 summarises revenue income, expenditure, funding and balances for 2015-16.

Total Gross Revenue Expenditure on services by Scottish local authorities in 2015-16 was £15,335 million, 0.7% higher than in 2014-15. Of this, £660 million was for the provision of housing through the Housing Revenue Account ( HRA).

Total service income raised by local authorities in 2015-16 was £5,230 million, an increase of 0.9% on the previous year. £1,150 million of this was raised through the Housing Revenue Account.

Net Revenue Expenditure is the element of expenditure on services to be funded by taxation and non-specific grant income (General Revenue Grant, Council Tax and Non-Domestic Rates), with any remaining expenditure to be met from reserves. Net revenue expenditure is calculated as gross service expenditure minus service income. This is sometimes referred to as the Net Cost of Service. Total Net Revenue Expenditure in 2015-16 is £10,105 million, which is an increase of 0.7% on 2014-15.

The largest service area is education with gross expenditure of £4,946 million and service income of £210 million in 2015-16, which gives a net revenue expenditure on education of £4,736 million, an increase of 2.7% on 2014-15.

The second largest service area is social work with gross expenditure of £4,044 million and £875 million of service income. Net Revenue Expenditure on social work is £3,169 million, 1.9% higher than in 2014-15.

Education and Social work account for three quarters of General Fund net revenue expenditure on services, with Education accounting for 45% and Social Work accounting for 30% of General Fund net revenue expenditure.

Total net Financing and Investment Expenditure for 2015-16 was £1,451 million, an increase of 2.5% on the previous year. Of this, £832 million was for paying interest on debt and £715 million was for repaying debt. Authorities received income from investments and trading operations of £96 million.

Total taxation and non-specific grant income available to authorities in 2015-16 was £12,003 million, 0.7% higher than in 2014-15. Of this, £7,147 million was General Revenue Grant, £2,791 million was Non-Domestic Rates and £2,055 million was from Council Tax with £10 million of other funding.

The surplus or deficit on the provision of services is calculated by taking the net revenue expenditure on services then adding to this financing and investment costs, then deducting funding from taxation and non-specific grant income, which gives a revenue surplus of £448 million in 2015-16. £340 million of this was used to finance capital expenditure and £34 million was transferred to other reserves (see Chapter 3 for more detail). The remaining £74 million was added to General Fund and HRA reserves which increased from £1,265 million on the 1 st April 2015 to £1,339 million on the 31 st March 2016.

(Surplus)/Deficit on Provision of Services:

(Surplus)/Deficit on Provision of Services

General Fund and HRA Revenue Reserves:

General Fund and HRA Revenue Reserves

Table 1.1: Revenue Expenditure, Income and Balances, 2015-16

£thousands

Gross Expenditure Gross Income Net Expenditure
Expenditure on Services
Education Services 4,945,624 (209,836) 4,735,788
Culture and Related Services 690,792 (92,615) 598,177
Social Work Services 4,044,181 (874,836) 3,169,345
Roads and Transport 620,464 (202,187) 418,277
Road Bridges 1,427 (1,404) 23
Environmental Services 816,944 (132,809) 684,135
Planning and Development Services 424,310 (181,394) 242,916
Central Services 685,713 (217,646) 468,067
Housing Services (Non- HRA) 2,398,253 (2,104,025) 294,228
Trading Services 46,778 (63,308) (16,530)
General Fund 14,674,486 (4,080,060) 10,594,426
Housing Revenue Account 660,183 (1,150,011) (489,828)
Net Cost of Services 15,334,669 (5,230,071) 10,104,598
Financing and Investment
Interest Payable and Similar Charges 831,736
Interest Receivable and Similar Income (56,035)
Statutory Repayment of Debt 714,878
(Surplus) or Deficit from Trading Operations (40,002)
Financing and Investment Income and Expenditure 1,450,577
General Funding
General Revenue Grant (7,146,854)
Non-Domestic Rates (2,791,322)
Council Tax (2,054,823)
Other (9,727)
Total Funding (12,002,726)
Surplus (-) / Deficit on Provision of Services (447,551)
Reserves
Balance at 1 April 2015 (1,265,418)
(Surplus) or Deficit for the year (447,551)
Capital Expenditure Funded from General Fund/ HRA 339,864
Movement in Reserves 34,033
(Increase) or decrease in reserves (73,654)
Balance 31 March 2016 (1,339,072)

1.2 General Fund Revenue Expenditure and Income

Chart 1.1 provides a breakdown of General Fund net revenue expenditure by service. The HRA has been excluded from this analysis as it is a separate, self-financing account. Education and social work account for three quarters of General Fund net revenue expenditure. The largest is Education with 45% (£4,736 million) of General Fund net revenue expenditure. Of this, £1,834 million was spent on primary education and £1,865 million on secondary education with the remainder spent on pre-primary, special and community education.

Social work is the next largest service with net revenue expenditure of £3,169 million (30% of General Fund net expenditure). Data on social work expenditure is collected on the basis of client groups. Of the client groups identified in the Local Financial Returns ( LFRs), older persons has the highest expenditure with £1.344 million followed by children and families with £900 million and adults with learning disabilities with £527 million.

A full breakdown of expenditure by sub-service is available in the accompanying excel tables.

Chart 1.1: General Fund Net Revenue Expenditure on Services: 2015-16

Chart 1.1: General Fund Net Revenue Expenditure on Services: 2015-16

Table 1.2 provides a time series of net revenue expenditure by service. Education and Social Work are the only service areas that have shown increases in expenditure each year since 2011-12. Roads and Transport is the only service area where expenditure has decreased each year since 2011-12.

Over the period from 2011-12 to 2015-16, net revenue expenditure on Social Work increased by 10% from £2,871 million in 2011-12 to £3,169 million in 2015-16. Planning & Development Services showed the largest percentage fall (16%) from £289 million in 2011-12 to £243 million in 2015-16.

Table 1.2: Net Revenue Expenditure by Service, 2011-12 to 2015-16

£millions

2011-12 2012-13 2013-14 2014-15 2015-16
Education 4,538 4,571 4,579 4,612 4,736
Cultural & Related Services 613 609 614 643 598
Social Work 2,871 2,959 3,031 3,110 3,169
Roads & Transport 460 457 436 420 418
Environmental Services 646 644 659 666 684
Planning & Development Services 289 279 279 278 243
Central Services 1, 2 428 386 484 439 468
Non- HRA Housing 323 306 321 342 294
Trading Services (13) (4) (2) (5) (17)
General Fund Net Expenditure 10,156 10,208 10,400 10,504 10,594
Housing Revenue Account (389) (425) (439) (465) (490)
General Fund + HRA Net Revenue Expenditure 9,767 9,783 9,961 10,039 10,105
Police 1 516 517
Fire 1 280 291
Central Services (Police & Fire) 1, 2 (22) (50)
General Fund + HRA Net Revenue Expenditure 10,540 10,540 9,961 10,039 10,105

1. Police and Fire Board expenditure has been separated out of the General Fund to allow for time series comparison. Previous publications will have included Police and Fire board expenditure as General Fund Expenditure; however the Police and Fire Reform (Scotland) Act 2012 replaced Police and Fire Boards with Police Scotland and the Scottish Fire and Rescue Service which are classified as Central Government.
Source: Local Financial Returns - LFR 00

Type of Expenditure

The element with the highest gross revenue expenditure is operating costs (which includes property costs, supplies and services costs, transport and payments to agencies and other bodies) which account for £6,723 million of expenditure. The second largest element was employee costs which account for £6,284 million.

Transfer payments are those made to individuals for which no goods or services are received in return by the local authority. The majority of transfer payments are housing benefits which make up around £1,875 million of the total of £2,077 million.

An adjustment for Inter Account and Inter Authority Transfers is made to the gross expenditure to take account of transfers between local authorities and between different services within an authority. This adjustment ensures that expenditure is not counted twice.

Support services include Finance, Legal, Human Resources, IT, Internal Audit, Procurement and Asset Management.

Local authorities can receive service income from a variety of sources.

The largest element of service income is Customer and Client Receipts, with £2,423 million of income. Of this, £1,141 million is from the Housing Revenue Account, the vast majority of which will be rent income.

The second largest element of service income is Government Grants (excl General Revenue Grant) with £2,036 million, however £1,835 million of this is under Non- HRA Housing which will mostly be a grant from the DWP to be used by authorities to pay out Housing Benefit.

Table 1.3: Net Revenue Expenditure by Service and Type of Income / Expenditure, 2015-16

£thousands

Education Culture and Related Services Social Work Roads and Transport Environmental Services Housing (non- HRA) Central and Other Total General Fund Housing Revenue Account Total General Fund plus HRA
Expenditure
Employee Costs 3,380,917 217,699 1,319,072 181,213 303,719 103,945 647,311 6,153,876 130,278 6,284,154
Operating Costs 1,377,107 445,456 2,473,921 579,852 480,190 414,952 505,059 6,276,537 446,948 6,723,485
Transfer Payments 38,266 16,758 101,802 (17,958) 7,291 1,875,136 32,348 2,053,643 23,269 2,076,912
Support Services 186,747 41,032 201,633 37,319 55,198 30,838 239,350 792,117 75,016 867,133
Adjustment for Inter Account and Inter Authority Transfers (37,413) (30,153) (52,247) (158,535) (29,454) (26,618) (267,267) (601,687) (15,328) (617,015)
Gross Expenditure 4,945,624 690,792 4,044,181 621,891 816,944 2,398,253 1,156,801 14,674,486 660,183 15,334,669
Income
Government Grants (excl GRG) (47,330) (5,461) (85,098) (4,440) (1,878) (1,834,648) (50,293) (2,029,148) (6,553) (2,035,701)
Other Grants, Reimbursements and Contributions (40,029) (18,326) (525,659) (12,322) (7,106) (109,738) (51,618) (764,798) (2,738) (767,536)
Customer and Client Receipts (122,477) (68,826) (264,079) (182,978) (123,825) (159,635) (360,153) (1,281,973) (1,140,720) (2,422,693)
Other Income 0 (2) 0 (3,851) 0 (4) (284) (4,141) 0 (4,141)
Total Income (209,836) (92,615) (874,836) (203,591) (132,809) (2,104,025) (462,348) (4,080,060) (1,150,011) (5,230,071)
Net Revenue Expenditure 4,735,788 598,177 3,169,345 418,300 684,135 294,228 694,453 10,594,426 (489,828) 10,104,598

Chart 1.2: Gross Expenditure by Service, 2015-16, £thousands

Chart 1.2: Gross Expenditure by Service, 2015-16

Chart 1.3 shows net revenue expenditure on services per head of population by council. Valuation Joint Boards, Tay Road Bridge and Regional Transport Partnerships have been excluded from the figure here. The chart shows that on average in Scotland local government spent £1,881 per person in 2015-16, up slightly from £1,877 in 2014-15.

Chart 1.3: Net Revenue Expenditure per Head Population by Local Authority, 2015-16 (£)

Chart 1.3: Net Revenue Expenditure per Head Population by Local Authority, 2015-16 (£)

Source: Local Financial Returns - LFR 00 and NRS Mid-Year Population Estimates (2015)

1.3 Funding Revenue Expenditure

Revenue expenditure by local authorities is funded by three main sources:

  • Grants from Central Government
  • Local Taxation (Council Tax and Non Domestic Rates)
  • Sales, fees and charges for services (Customer and Client Receipts)

The main source of revenue income for local government is General Revenue Grant, (formerly referred to as the Revenue Support Grant). General Revenue Grant ( GRG) is paid by the Scottish Government to support the delivery of local services.

Local taxation contributed almost £4.8 billion to the funding of local government in 2015-16 and further information on these taxes is set out in the following sections. General Revenue Grant and local taxation combined together are referred to as "Taxation and non-specific grant income". Other income is mostly composed of grants and subsidies received from central government and other parts of the public sector.

Table 1.4: Revenue Income by Source, 2011-12 to 2015-16

£millions

2011-12 2012-13 2013-14 1 2014-15 2015-16
General Funding: 12,483 12,543 11,724 11,923 12,003
General Revenue Grant 7,790 7,782 7,225 7,167 7,147
Non-Domestic Rates 2,203 2,297 2,436 2,656 2,791
Council Tax 2 2,301 2,319 1,978 2,022 2,055
Other Funding 189 145 85 78 10
Service Income: 5,704 5,777 5,066 5,185 5,230
Government Grants (excl GRG) 2,561 2,640 1,974 1,984 2,040
Other Grants, Reimbursements and Contributions 856 807 774 833 768
Customer and Client Receipts 2,287 2,330 2,317 2,368 2,423
Total Revenue Income 18,188 18,320 16,790 17,108 17,233

1. Figures for 2013-14 and later are not comparable with prior years due to changes to the way that Police and Fire are funded following the formation of Police Scotland and the Scottish Fire and Rescue Service. See section 5.2 for more details.
2. Pre-2013-14 Council Tax figures are not comparable with later years as Council Tax Reduction ( CTR) was introduced from 1 April 2013 to replace Council Tax Benefit ( CTB), which was abolished by the UK Government as part of its welfare reform programme. Due to differences in the administration of the two schemes, Council Tax figures before 2013-14 include CTB, whereas figures from 2013-14 onwards do not include CTR.
Source: Local Financial Returns ( LFRs): LFR 00

Chart 1.4: Revenue Income and Funding, 2015-16

Chart 1.4: Revenue Income and Funding, 2015-16

Source: Local Financial Returns ( LFRs): LFR A0 and 00

1.4 Council Tax

In 2015-16, Council Tax bills were issued to 2.46 million dwellings in Scotland. Over £2 billion of Council Tax revenue was raised across all local authorities in Scotland in 2015-16.

Council Tax was introduced in Scotland on the 1 st April 1993 to replace the Community Charge. It is a tax system based on dwellings and is used as a source of funding in addition to that received from other sources (General Revenue Grant, Non-Domestic Rates, ring-fenced revenue grants and other locally raised income from rent, fees and charges).

There are three factors that determine the amount of Council Tax that a dwelling is liable for. These are:

1. The market value of the dwelling as at the 1 st April 1991. Each dwelling is placed into one of eight bands from A to H, with Band A dwellings liable for the lowest rates of Council Tax and Band H attracting the highest.

2. The Band D rate which is set by the local authority, with other bands calculated as a ratio to Band D. These ratios will change after 2016-17.

3. A range of exemptions, discounts and reductions that are available in certain circumstances, or in some cases an increase in Council Tax due to the application of a levy.

The valuation range and ratio for each band is given in Table 1.5.

Table 1.5: Council Tax data by band

Valuation band ranges as at 1 st April 1991 Ratio to Band D (to 2016-17) No. of chargeable dwellings as at September 2016 Proportion of chargeable dwellings
Band A Under £27,000 6/9 504,715 21%
Band B £27,001 to £35,000 7/9 571,217 23%
Band C £35,001 to £45,000 8/9 397,023 16%
Band D £45,001 to £58,000 9/9 328,309 13%
Band E £58,001 to £80,000 11/9 329,682 13%
Band F £80,001 to £106,000 13/9 189,367 8%
Band G £106,001 to £212,000 15/9 122,158 5%
Band H Over £212,000 18/9 12,936 1%
Total 2,455,406 100%

Collection and Potential Yield of Council Tax

Local authorities are responsible for billing and collecting Council Tax. Before the start of each financial year, local authorities issue Council Tax bills to householders in each dwellings. Each bill is calculated by applying the appropriate band rate for the local authority, then applying any discounts, exemptions, reductions or increases: further details are provided in Tables 1.10 and 1.11. Chart 1.4 illustrates the breakdown of the gross Council Tax potential yield into Council Tax billed and the amounts not billed due to Council Tax Reduction ( CTR), discounts and exemptions.

Chart 1.5: Council Tax Potential Yield (£ millions), 2015-16

Chart 1.5: Council Tax Potential Yield (£ millions), 2015-16

Local authorities collect Council Tax relating to these bills over the year, and also continue to collect late amounts from previous billing years. The provisional in-year Council Tax collection rate for 2015-16 was 95.7 per cent and the total amount collected for Scotland as a whole (after CTR) was £2.055 billion, including late amounts for previous years. Table 1.6 shows the amount of Council Tax collected by each local authority in 2015-16. More information about bills issued in 2015-16 and the provisional amounts collected are available in the statistics publication 'Council Tax Collection Statistics, 2015-16' which is available at: http://www.gov.scot/stats/bulletins/01224

Table 1.6: Council Tax income after CTR by local authority, 2015-16 a

Local Authority Net Council Tax income (£'000s)
Aberdeen City 106,170
Aberdeenshire 117,755
Angus 42,549
Argyll & Bute 43,373
Clackmannanshire 18,658
Dumfries & Galloway 56,228
Dundee City 47,596
East Ayrshire 41,444
East Dunbartonshire 50,364
East Lothian 42,790
East Renfrewshire 41,966
Edinburgh, City of 216,351
Eilean Siar 9,376
Falkirk 54,384
Fife 135,955
Glasgow City 186,803
Highland 104,358
Inverclyde 27,730
Midlothian 35,364
Moray 35,447
North Ayrshire 47,718
North Lanarkshire 101,644
Orkney Islands 7,879
Perth & Kinross 69,494
Renfrewshire 66,148
Scottish Borders 46,593
Shetland Islands 8,492
South Ayrshire 46,566
South Lanarkshire 112,413
Stirling 41,564
West Dunbartonshire 30,714
West Lothian 60,937
Scotland 2,054,823

a Figures relate to income collected in financial year 2015-16, which can include amounts that were billed in previous years.

Source: Local Financial Returns, 2015-16

Chargeable Dwellings

Table 1.7 shows the number of dwellings in Scotland for each September from 2011 to 2016. There was a total of 2.575 million dwellings in Scotland in 2016, of which 120,000 dwellings were exempt for Council Tax purposes. This gave 2.455 million chargeable dwellings in 2016: an increase of around 2.8 per cent (66,000 dwellings) since 2011.

Table 1.7: Total number of dwellings in Scotland, 2011 to 2016

Total Dwellings Exempt Dwellings Chargeable Dwellings
2011 2,500,769 111,740 2,389,029
2012 2,515,042 113,173 2,401,869
2013 2,526,703 116,372 2,410,331
2014 2,540,330 112,525 2,427,805
2015 2,557,365 116,847 2,440,518
2016 2,575,495 120,089 2,455,406

Source: CTAXBASE Return

Chart 1.5 shows the distribution of chargeable dwellings across Council Tax bands in each local authority. Across the whole of Scotland, just under three-quarters of all chargeable dwellings are in Bands A to D. The distribution varies across local authorities due to variations in property market values. Eilean Siar has the largest proportion of dwellings in Bands A to D (90 per cent), whereas East Renfrewshire has the lowest proportion in Bands A to D (44 per cent). Dwellings in Band E to H, just over a quarter of the total, will be subject to revised ratios, and therefore higher charges, from 2017-18.

The three local authorities with the highest number of chargeable dwellings were Glasgow, Edinburgh and Fife, with over a quarter of the chargeable dwellings in Scotland between them. Further data on the number of chargeable dwellings by local authority and Council Tax band can be found in the supplementary tables.

Chart 1.6: Percentage of chargeable dwellings by Council Tax band for each local authority as at September 2016

Chart 1.6: Percentage of chargeable dwellings by Council Tax band for each local authority as at September 2016

Council Tax Rates & Average Bills

Each local authority determines their own Band D rate of Council Tax as part of their budget setting process. The rate for other bands is then calculated as a set ratio of the Band D rate: the ratios up to and including 2016-17 can be found in Table 1.5. As a result, each local authority has different Council Tax rates. The Band D Council Tax levels for each local authority are shown in Chart 1.6, and range from £1,024 in Eilean Siar to £1,230 in Aberdeen City.

Chart 1.7: Band D Council Tax rate by local authority, 2015-16 (£)

Chart 1.7: Band D Council Tax rate by local authority, 2015-16 (£)

Since 2007-08, Scottish Government and local government have worked in partnership to freeze Council Tax rates each year. The one exception is Stirling, where the council reduced the Band D rate from £1,223 in 2007-08 to £1,209 in 2008-09, and subsequently to £1,197 in 2012-13. The Council Tax freeze has caused the Scotland average Band D Council Tax rate to remain steady at £1,149 since 2007-08 - a fall in real terms.

Table 1.8 shows how the average Band D Council Tax bill for Scotland has changed each year from 2010-11. The average Council Tax bill per dwelling in 2015-16 was £991. This differs from the average Band D rate due to the distribution of dwellings across Council Tax bands, as can be seen in Table 1.5 and Chart 1.5, and the application of discounts.

Table 1.8: Average Council Tax bills, 2010-11 to 2015-16

Average CT bill per dwelling
Before CTB/ CTR After CTB/ CTR
2010-11 £985 £827
2011-12 £984 £826
2012-13 £985 £830
2013-14 £988 £838
2014-15 £989 £846
2015-16 £991 £856

Source: CTAS, CTAXBASE Returns and Local Financial Returns ( LFR 12)

Council Tax Reduction ( CTR)

Scotland's CTR scheme was introduced in 2013 following localisation of Council Tax support and the UK Government's abolition of Council Tax Benefit ( CTB). The CTR scheme reduces the Council Tax liability of vulnerable people in Scotland, including people on low incomes, pensioners and lone parents. The impact of CTB/ CTR on the average Council Tax bill is also shown in Table 1.8. After taking these reductions in liability into account, the average bill per dwelling for 2015-16 reduced by £135 from £991 to £856.

Scotland's CTR scheme is funded by the UK Government, Scottish Government and local government. In 2015-16, CTR funding from government totalled £343 million (£320 million from UK Government and £23 million from Scottish Government). Local authorities agreed to contribute up to £17 million additional funding from their own budgets to the cost of the scheme, as part of the joint commitment between Scottish Government and local government to mitigate the 10% funding cut by the UK Government.

The amounts distributed to each local authority and the final total costs are shown in Table 1.9. The total cost of the CTR scheme across Scotland in 2015-16 was around £330 million. This figure is £13 million less than the £343 million funding provided by the UK Government and Scottish Government.

Table 1.9: CTR funding and final liability for local authorities, 2015-16

Local Authority UKG and SG funding (£'000s) Final total reduction in liability (£'000s)
Aberdeen City £9,239 £9,051
Aberdeenshire £7,251 £7,072
Angus £5,185 £5,153
Argyll & Bute £5,485 £5,269
Clackmannanshire £3,520 £3,428
Dumfries & Galloway £8,497 £8,326
Dundee City £12,359 £11,898
East Ayrshire £9,479 £8,988
East Dunbartonshire £4,537 £4,378
East Lothian £5,291 £5,156
East Renfrewshire £3,744 £3,590
Edinburgh, City of £26,621 £24,927
Eilean Siar £1,498 £1,387
Falkirk £8,259 £7,882
Fife £20,465 £20,036
Glasgow City £68,628 £66,245
Highland £12,099 £11,675
Inverclyde £6,693 £6,457
Midlothian £5,183 £4,887
Moray £3,742 £3,638
North Ayrshire £11,397 £11,267
North Lanarkshire £24,309 £23,052
Orkney Islands £741 £733
Perth & Kinross £6,628 £6,287
Renfrewshire £13,180 £12,623
Scottish Borders £5,539 £5,179
Shetland Islands £638 £616
South Ayrshire £8,481 £8,123
South Lanarkshire £20,659 £20,076
Stirling £4,355 £4,186
West Dunbartonshire £9,384 £8,907
West Lothian £9,913 £9,387
Scotland £343,000 £329,879

Source: Local Financial Returns, 2015-16

Changes to Council Tax Liabilities

Not all dwellings are liable to pay the full rate of Council Tax; discounts, exemptions and increased rates can be charged for certain types of dwellings, and the CTR scheme is available to support vulnerable people in meeting their Council Tax liabilities. Table 1.10 summarises the range of discounts, exemptions and reductions available and the change in liability that applies to each type. Please note that, in some cases, more than one type of discount, exemption or reduction may apply. The examples given in Table 1.10 are typical but not exhaustive. For a full explanation of Council Tax discounts and exemptions, go to: www.gov.scot/Topics/Government/local-government/17999/counciltax/Secondhomes.

Table 1.10: Council Tax discounts, exemptions, reductions and increases

Type of Support Typical dwellings that are exempt Reduction in liability
Discounts
Single Person Discount Occupied by only one CT liable adult 25%
Second Homes Occupied by those living in tied accommodation (e.g. farm workers, members of the clergy), when they are contributing to the local economy. 10 - 50% 1
Long Term Empty (6 - 12 months) Empty and unfurnished for > 6 months. 50%
Long Term Empty (> 12 months) Empty and unfurnished for > 12 months. 10 - 50% or an increase 1
Occupied entirely by disregarded adults Dwellings occupied entirely by disregarded adults 50%
Exemptions
Occupied Persons who are exempt from Council Tax 100%
Unoccupied Empty for < 6 months; cannot be occupied because in need of repair; residents have moved out due to care needs. 100%
Reductions
Disability Reduction Homes that have been adapted for a disabled person. One CT band 2
CTR - Passported In receipt of Pension Credit (Guarantee), JSA (income based), ESA (income related) or Income Support. 100%
CTR - Not passported Low income household Up to 100% 3

1 The actual change in liability depends on local authority policy. In 2013-14, local authorities gained the discretionary power to remove the empty properties discount or set a Council Tax increase of 100% on properties which have been empty for more than 12 months.
2 For example, an eligible Band D rate property would be charged the Band C rate.
3 The exact change in liability is dependent on a means-test.

Table 1.11 shows the number of dwellings eligible for Council Tax discounts and reductions. Of the 2.46 million chargeable dwellings in Scotland, around 1 million were eligible for a discount in 2016. The most common type of discount was the Single Person Discount, with around two-fifths of chargeable dwellings entitled to the discount in 2016. The CTR scheme supports half a million dwellings, or around one-fifth of chargeable dwellings, in meeting their Council Tax liability.

Around 62,000 dwellings are classified as second homes or long term empty properties: further statistics on these are available at: www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/LTemptysecondhomes.

Table 1.11: Number of dwellings 1 in receipt of Council Tax discounts and reductions as at September

Type of Support 2011 2012 2013 2014 2015 2016
All chargeable dwellings 2,389,029 2,401,869 2,410,331 2,427,805 2,440,518 2,455,406
Disability reduction 13,999 13,994 13,791 13,736 13,505 13,463
Single Person Discount 945,515 948,208 952,251 953,612 955,505 963,297
Second Homes 2 39,250 40,599 35,734 27,879 27,317 26,140
Long Term Empty (empty > 6 months) 25,356 25,454 27,327 31,884 36,419 35,725
Occupied entirely by disregarded adults 1,910 1,809 1,579 2,802 1,378 1,411
Dwellings not subject to a discount 1,376,998 1,385,799 1,393,440 1,411,628 1,419,899 1,428,833
CTR/ CTB 3 565,730 560,880 548,070 533,980 512,340 495,660

1 Some dwellings may be eligible for more than one type of support, in these cases the dwelling will be counted under each type of support it is eligible for.
2 It is not possible for some councils to separately identify second homes and long term empty dwellings. For these councils, the total number of second homes and long term empty dwellings have been recorded under second homes
3 CTB figures to 2012 were published by DWP and are available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229795/hbctb_release_may13_revised.xls
Source: CTAXBASE Return, CTR Extract and DWP CTB figures

1.5 Non-Domestic Rates

Non-Domestic Rates ( NDR) is a property tax paid by the owner/occupier or tenant of a non-domestic property.

In 2015-16, the income raised from NDR was £2.581 billion.

The principles of non-domestic rates were established in the Lands Valuation (Scotland) Act of 1854. This act also provided for the appointment of the Scottish Assessors, who are responsible for determining the classification and valuation of non-domestic and domestic properties, and are independent of both the Scottish Government and local authorities. A non-domestic property is an individual property used for non-domestic purposes. Examples include business premises and third and public sector properties.

The value given to a property for NDR purposes is called its rateable value ( RV).

The RV of a property is a legally defined valuation provided by the Assessor, broadly based on the rental values the property could achieve. As such it is not necessarily a reflection of the profitability, turnover or output of the business. It is established at revaluation where the Scottish Assessors assess rateable values for all non-domestic properties in Scotland, taking account of the type and nature of the property. All non-domestic properties and their corresponding RVs are listed on the Valuation Roll, which is maintained by the Scottish Assessors. Rateable values are periodically updated at non-domestic rate revaluations. Scottish Assessors will undertake a non-domestic rates revaluation in 2017, assigning updated rateable values to all non-domestic properties in Scotland.

NDR bills are calculated using the rateable value ( RV) of non-domestic properties, multiplied by a poundage set nationally by Scottish Ministers, less any relief or exemption entitlement.

Mathematical Equation

For properties with a rateable value greater than £35,000, the Large Business Supplement ( LBS) applies in addition to the poundage (the poundage is effectively increased slightly by adding the LBS). From 2017/18, the Large Business Supplement will apply to properties with rateable value greater than £51,000.

Table 1.12 shows the composition of properties (and associated RV) on the Valuation Roll by property type. As at 1 st April 2016, there were 225,259 properties with a total RV of £6.8 billion. Shops were the most prevalent type of property on the valuation roll, making up nearly a quarter (24%) of the number of properties and RV on the roll. Industrial subjects and offices are the next two largest categories in terms of numbers and RV. Together, these three categories account for 63% of properties on the valuation roll, and 58% of the RV.

Table 1.12: Non-Domestic Rates Properties by Classification (as at 1 April 2016)

Number of properties Rateable value % of Properties on Valuation Roll % of RV on Valuation Roll
CATEGORY 1st April 2016 1st April 2016 1st April 2016 1st April 2016
Advertising 1,940 7,968,074 1% 0%
Care Facilities 2,994 107,649,054 1% 2%
Communications 357 22,955,960 0% 0%
Cultural 1,393 46,820,470 1% 1%
Education and Training 3,710 513,986,635 2% 8%
Garages and Petrol Stations 4,281 65,180,995 2% 1%
Health and Medical 3,196 207,582,765 1% 3%
Hotels 5,334 193,044,807 2% 3%
Industrial Subjects 48,153 1,153,575,289 21% 17%
Leisure, Entertainment, Caravans etc. 21,758 243,908,733 10% 4%
Not in Use 1 36,000 0% 0%
Offices 40,291 1,145,269,453 18% 17%
Other 13,198 97,744,138 6% 1%
Petrochemical 141 117,752,030 0% 2%
Public Houses 3,746 109,755,560 2% 2%
Public Service Subjects 10,011 321,714,128 4% 5%
Quarries, Mines, etc. 686 19,933,315 0% 0%
Religious 6,203 55,171,137 3% 1%
Shops 53,591 1,627,380,125 24% 24%
Sporting Subjects 3,371 17,895,000 1% 0%
Statutory Undertaking 904 720,634,607 0% 11%
Total All Non-Domestic Properties 225,259 6,795,958,275 100% 100%

Source: Scottish Assessors Valuation Roll, 1st April 2016

Table 1.13 provides a breakdown of properties on the Valuation Roll by local authority and RV band.

In terms of the Small Business Bonus Scheme and the application of the Large Business Supplement, £18,000 and £35,000 currently represent the rateable value thresholds for small and large businesses respectively [1] .

Around 78% of all properties (176,216 properties) have a Rateable Value less than or equal to £18,000.

Table 1.13: Non-Domestic Rates Subjects by Local Authority (as at 1 April 2016) 1

Local Authority Rateable Value Band Total Non-Domestic Properties
<= £18,000 £18,001 to £35,000 > £35,000
Scotland 176,216 19,924 29,119 225,259
Aberdeen City 5,172 1,150 2,324 8,646
Aberdeenshire 10,041 831 1,107 11,979
Angus 4,055 345 405 4,805
Argyll & Bute 7,712 352 349 8,413
Clackmannanshire 1,284 126 144 1,554
Dumfries & Galloway 8,271 483 552 9,306
Dundee City 4,185 604 944 5,733
East Ayrshire 3,214 315 415 3,944
East Dunbartonshire 1,766 292 302 2,360
East Lothian 2,812 260 325 3,397
East Renfrewshire 1,296 214 225 1,735
Edinburgh, City of 13,918 2,411 3,910 20,239
Eilean Siar 2,221 112 117 2,450
Falkirk 3,689 484 676 4,849
Fife 10,559 1,199 1,618 13,376
Glasgow City 17,789 2,933 4,740 25,462
Highland 15,310 1,011 1,396 17,717
Inverclyde 1,819 208 303 2,330
Midlothian 2,293 245 369 2,907
Moray 4,019 259 364 4,642
North Ayrshire 4,140 396 500 5,036
North Lanarkshire 7,180 1,075 1,548 9,803
Orkney Islands 1,871 139 96 2,106
Perth & Kinross 7,191 572 720 8,483
Renfrewshire 4,700 585 963 6,248
Scottish Borders 6,399 406 421 7,226
Shetland Islands 1,741 111 146 1,998
South Ayrshire 3,822 428 564 4,814
South Lanarkshire 7,285 1,090 1,476 9,851
Stirling 4,022 420 571 5,013
West Dunbartonshire 2,184 269 415 2,868
West Lothian 4,256 599 1,114 5,969

1. Includes a small percentage of properties with zero rateable value.
Source: Scottish Assessors Valuation Roll, 1st April 2016

Table 1.14 shows a time series of annual NDR Income, total Rateable Value, and Poundage Rate. Revaluations typically take place on a 5-year cycle and are intended to be 'revenue neutral'. As a consequence of the 2010 revaluation, the poundage was reduced from 48.1p in 2009-10 to 40.7p in 2010-11 and the total RV of non-domestic properties (the tax base) increased from £5.3 billion in 2009-10 to £6.6 billion in 2010-11. The next revaluation was delayed, and is taking place this year and new rateable values come into effect in April 2017.

Table 1.14: Non-Domestic Rates Income, Total Rateable Values and Poundage Rate

2009-10 2010-11 1 2011-12 2012-13 2013-14 2014-15 2015-16
Non Domestic Rates Income (£m) 2 2,010 2,138 2,251 2,347 2,367 2,511 2,579
Total Rateable Value (£m) 5,299 6,612 6,678 6,718 6,716 6,681 6,719
Poundage Rate (pence) 48.1 40.7 42.6 45.0 46.2 47.1 48.0
Large Business Supplement (pence) 3 0.4 0.7 0.7 0.8 0.9 1.1 1.3

1. Revaluation occurred in 2010
2. All income figures, including 2015-16, are the final audited income collected by councils, and paid to SG. These figures are net of reliefs awarded by the SG, but gross of any local reliefs, or top-ups to discretionary reliefs that the councils award themselves.
3. The Large Business Supplement is applied in addition to the poundage for properties with a rateable value over £35,000
Source: NDR Income - Non-domestic Rate Income Returns, Rateable Value - Scottish Assessors Valuation Roll as at 1st April

Table 1.14 also shows that the total RV has increased slightly since the 2010 revaluation from £6.61 billion to £6.72 billion in 2015-16. This is due to the net impact of several factors including increases in the tax base from new properties or extension of existing properties and decreases as demolished properties are deleted from the valuation roll or as the RV is reduced as a result of appeals [2] . As Non-Domestic Rates bills in Scotland are directly related to the rateable values of individual non-domestic properties, changes in the total RV impact on the amount of NDR available for collection, along with other factors such as the poundage rate and backdated revaluation appeals losses which also affect the final income.

Inflation is a key driver of growth in NDR income as the poundage rate, set nationally by Scottish Ministers [3] , is typically tied to the Retail Price Index (other than in the first year of a revaluation). NDR bills are calculated by multiplying the RV of a property by the poundage rate, and then applying discounts and exemptions. Large business properties (those with a RV greater than £35,000) also pay a supplement to the poundage rate, known as the Large Business Supplement ( LBS), which is used to fund a portion of the Small Business Bonus Scheme ( SBBS). The LBS was 1.3p in 2015-16. For the period 2012-13 to 2014-15, large retailers with RV of £300,000 or more that sold both alcohol and tobacco also paid the Public Health Supplement ( PHS) - an additional 13p on the poundage rate in 2014-15. These supplements increase the amount paid in NDR bills. Conversely, exempt properties (which do not pay rates), and relief schemes such as the Small Business Bonus Scheme can significantly reduce the amount paid in NDR bills, and therefore the NDR income.

Table 1.15 summarises the total number of properties and rateable value as at 1 st April 2016 and the NDR income collected in 2015-16 by local authority (net of reliefs). This is net of reliefs paid by Scottish Government, but gross of all local reliefs and top-ups to discretionary reliefs paid by councils themselves. Consequently, it is slightly greater than the net amount actually paid by businesses.

Table 1.15: Non-Domestic Rates Properties, Rateable Values and Income By Local Authority 1

Authority Non-Domestic Properties 2
Apr-16
Non-Domestic Rateable Values
Apr-16
(£000s)
Non-Domestic Rate Income
2015-16 3
(£000s)
Scotland 225,259 6,795,958 2,578,770
Aberdeen City 8,646 479,314 199,123
Aberdeenshire 11,979 235,655 92,109
Angus 4,805 78,280 26,826
Argyll & Bute 8,413 89,955 31,364
Clackmannanshire 1,554 38,240 14,574
Dumfries & Galloway 9,306 118,827 43,961
Dundee City 5,733 187,521 66,710
East Ayrshire 3,944 80,981 27,710
East Dunbartonshire 2,360 67,872 23,515
East Lothian 3,397 68,688 22,457
East Renfrewshire 1,735 41,073 13,942
Edinburgh, City of 20,239 908,513 341,540
Eilean Siar 2,450 23,525 7,483
Falkirk 4,849 172,070 65,008
Fife 13,376 435,577 171,419
Glasgow City 25,462 999,479 360,621
Highland 17,717 316,759 117,390
Inverclyde 2,330 60,030 20,240
Midlothian 2,907 76,695 25,529
Moray 4,642 90,579 35,408
North Ayrshire 5,036 108,059 36,239
North Lanarkshire 9,803 298,898 109,654
Orkney Islands 2,106 26,326 9,136
Perth & Kinross 8,483 148,938 52,824
Renfrewshire 6,248 235,867 94,224
Scottish Borders 7,226 91,251 30,982
Shetland Islands 1,998 55,548 17,454
South Ayrshire 4,814 109,608 40,068
South Lanarkshire 9,851 649,089 281,787
Stirling 5,013 114,282 42,807
West Dunbartonshire 2,868 172,572 76,450
West Lothian 5,969 215,887 80,218

1. Rates bills for specific utilities are collected by specified councils on behalf of all 32 councils, and appear on the valuation roll for those councils: South Lanarkshire (Electricity), West Dunbartonshire (Gas), Fife (Water), Falkirk (Docks and Harbours), Highland (Railways), Renfrewshire (Telecommunications). This increases the take for those authorities.
2. Includes properties with a zero rateable value
3. Audited income collected by councils. This is net of reliefs paid by Scottish Government, but gross of all local reliefs, and top-ups to discretionary reliefs paid by councils themselves.
Source: Number of Properties and Rateable Value - Scottish Assessors Valuation Roll 1st April 2016 NDR Income - Non-domestic Rate Income Returns provided by Councils

Table 1.15 shows geographical variations in the number of properties, rateable value and NDR income. It should be noted however that some councils have responsibility for collection of NDR for specific utilities as detailed in the footnote to the table. For these councils, the entries on the valuation roll and NDR income include Scotland-wide data for the specified utilities sectors. To avoid the need for revisions, only final (audited) NDR income figures are included in this publication. The deadline for NDR income returns was accelerated for 2014-15 and subsequent years to allow audited NDR income data to be included.

There are a number of types of NDR relief that reduce the NDR bill for qualifying properties. Table 1.16 shows the main types of relief available [4] and the amount of relief provided each year from 2010-11 to 2015-16. It should be noted that the reliefs here are both mandatory reliefs, and the element of discretionary relief paid by Scottish Government. Local reliefs and any top-ups to discretionary reliefs awarded by the local authorities themselves are not included.

Table 1.16: Amount of Non-Domestic Rates Relief Provided by Relief Type 1,2

£thousands

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2
Empty Property Relief 145,936 157,862 169,134 146,496 140,962 141,604
Charities 136,731 151,276 164,979 173,623 181,242 189,312
Sports Clubs 11,476 12,059 12,431 12,911 13,487 13,852
Disabled persons relief 51,901 54,372 57,580 58,299 59,648 60,599
SBBS 123,259 134,719 150,196 161,002 170,635 179,544
Religious Properties 24,016 22,960 24,573 25,205 26,113 26,625
Rural Rate Relief 4,129 4,218 4,305 4,323 4,244 4,235
Renewable Energy Relief Scheme 3 3,560 4,126 4,811 7,333 9,280 9,545
New Start 4 130 484 188
Fresh Start 5 189 536 573
Other 6 4 43 10 63 221 422
Gross Amount 501,013 541,635 588,018 589,574 606,852 626,497

1. Estimates include mandatory and discretionary elements of relief where applicable, but exclude backdated payments of relief
2. Reliefs for all years, including 2015-16, are final audited figures.
3. The Renewable Energy Relief Scheme was introduced at 1 April 2010.
4. The new start relief scheme was introduced at 1 April 2013 and will run for 3 years.
5. The fresh start relief scheme was introduced at 1 April 2013.
6. Other includes Hardship and Enterprise Areas.
Source: Non-domestic Rate Income Returns from Councils

The gross amount of relief provided has increased substantially from £501 million in 2010-11 to £626 million in 2015-16. Key reasons for this are increases in the poundage rate (due to normal annual inflation) and an increase in relief provided through the Small Business Bonus Scheme, with expansion of the scheme thresholds and greater awareness of the scheme likely to be contributory reasons. Other reasons for change are likely to include growth in the tax base over this period (i.e. an increase in the overall Rateable Value) and changes to amounts awarded for other reliefs (for example the introduction of the new relief schemes). Changes were made to Empty Property Relief ( EPR) in 2013, reducing the amount of EPR for non-industrial properties from 100% for 3 months and then 50% thereafter to 100% for 3 months then 10% thereafter, resulting in decreases to the cost of Empty Property Relief in the last three years.

Table 1.16a shows the amount of relief paid in each local authority area in 2015-16.

Table 1.16a: Amount of Non-Domestic Rates Relief Provided by Relief Type, by Local Authority, 2015-16 1,2

£thousands

Authority Empty Property Relief Charities Sports Clubs Disabled persons relief SBBS Religious Exemption Rural Rate Relief Renewable Energy Relief Scheme 3 Other 4 All reliefs
Aberdeen City 5,965 10,696 318 2,870 4,873 1,054 - - 20 25,797
Aberdeenshire 2,078 2,222 1,151 2,516 8,245 925 1,197 2,216 33 20,584
Angus 1,934 1,841 514 1,360 3,916 556 71 135 35 10,362
Argyll & Bute 568 2,197 238 623 5,280 441 245 737 3 10,332
Clackmannanshire 623 884 93 469 1,465 119 6 8 - 3,668
Dumfries & Galloway 2,068 2,019 352 1,053 6,346 478 254 371 7 12,947
Dundee City 5,074 9,121 123 2,278 5,060 726 - - 27 22,410
East Ayrshire 1,759 2,472 128 1,217 3,366 461 11 9 26 9,451
East Dunbartonshire 473 2,549 405 884 2,698 560 1 - 9 7,579
East Lothian 1,041 2,667 934 962 3,128 424 38 63 8 9,265
East Renfrewshire 688 1,328 241 782 1,785 466 - 111 1 5,403
Edinburgh, City of 20,248 33,833 1,477 7,297 18,092 3,769 - - 127 84,843
Eilean Siar 267 928 56 376 1,364 286 117 242 8 3,645
Falkirk 3,686 3,216 109 1,486 4,307 445 5 13 10 13,277
Fife 9,714 9,574 558 4,321 11,453 1,468 38 333 123 37,583
Glasgow City 36,142 44,300 645 8,195 21,593 3,325 - 36 204 114,440
Highland 3,981 8,410 328 3,629 12,001 1,300 1,184 1,231 40 32,104
Inverclyde 1,798 2,157 295 742 2,253 307 - - - 7,552
Midlothian 1,287 3,349 278 416 2,380 359 10 - - 8,078
Moray 635 1,507 213 914 2,954 435 146 503 7 7,313
North Ayrshire 3,048 2,715 290 1,546 4,061 485 54 425 67 12,692
North Lanarkshire 7,737 8,512 410 2,524 8,662 2,427 - 210 104 30,586
Orkney Islands 327 855 53 225 1,274 161 259 400 28 3,582
Perth & Kinross 1,453 5,093 383 2,448 6,920 803 101 766 9 17,975
Renfrewshire 6,987 5,024 302 2,374 5,416 769 - - 6 20,877
Scottish Borders 1,955 1,701 991 1,183 5,443 524 119 606 51 12,573
Shetland Islands 1,353 1,201 730 347 882 160 171 56 1 4,901
South Ayrshire 2,610 2,147 215 1,553 4,138 549 44 30 146 11,433
South Lanarkshire 5,553 7,779 503 3,241 8,664 1,544 52 889 40 28,264
Stirling 1,721 3,362 987 829 3,844 317 103 110 16 11,289
West Dunbartonshire 1,370 2,229 73 579 2,628 371 1 - 3 7,252
West Lothian 7,462 3,424 459 1,359 5,051 611 8 44 24 18,442
Scotland 141,604 189,312 13,852 60,599 179,544 26,625 4,235 9,545 1,183 626,497

1. Estimates include mandatory and discretionary elements of relief where applicable, but exclude backdated payments of relief. Figures exclude local reliefs, or top-ups to discretionary reliefs which the local authorities award themselves.
2. Figures are final audited figures.
3. The Renewable Energy Relief Scheme was introduced at 1 April 2010.
4. Other includes Hardship and Enterprise Areas, new start and fresh start.
Source: Non-domestic Rate Income Returns from Councils

Most of the NDR income collected by local authorities is pooled at the Scotland level and then redistributed back to local authorities. There are two exceptions to this.

A Business Rates Incentivisation Scheme ( BRIS) was introduced from April 2012 to incentivize councils to maximise existing business rates income and attract new economic growth by allowing all authorities that exceed their annual business rates target to retain 50% of any additional income. In 2015-16 the amount retained under this scheme was £1.9 million (£5.4 million in 2014-15).

The Scottish Government is also piloting Tax Incremental Financing ( TIF) which allows local authorities to fund public sector infrastructure, which unlocks private sector investment, contributing to sustainable and inclusive economic growth. This growth is funded from future incremental business rates that are generated as a result of attracting more businesses into the area because of upfront public sector enabling investment.

Six pilot TIF schemes were developed through secondary legislation under existing provisions of the Local Government Finance Act (1992). The pilot approach has allowed this model to be tested in Scotland, with four pilot projects currently in place, of which three have received full approval (Argyll & Bute, Falkirk and Glasgow) and one (Fife) has received approval in principle. In 2015-16 the amount of NDR retained by local authorities for TIF projects was £0.9 million (£0.9 million in 2014-15).

Each council reports to the Scottish Government the amount of NDR collected which is to be included in the central pool. The amount to be re-distributed to each authority from the pool is known as the Distributable Amount ( DA) and is set by the Scottish Government before the start of the financial year in question.

From 1 st April 2011, the distribution methodology sees Councils retain the amount estimated they will collect in business rates (the previous policy saw NDR redistributed on the basis of population shares). As the combined total of NDR income and General Revenue Grant ( GRG) provided to councils is guaranteed by the Scottish Government, any reduction in the amount of NDR collected is compensated for by a corresponding increase in GRG and vice versa. Any changes from the assumed collection amount in any year is paid out or recovered from Councils in the calculation of future years distributable business rates totals. The Distributable Amount is based upon an estimate of the NDR income made prior to the year start, and includes prior year adjustments. It will not therefore match exactly the income received by the Scottish Government in any year (as given in tables 1.14 and 1.15), nor the total eventual contributions to the pool for any year.

The calculation of the distributable amount for 2015-16 is given in Annex F and the 2015-16 distributable amount per local authority is shown in Table 1.17.

Table 1.17: Non-Domestic Rates Distributable Amount 1 by Local Authority, 2015-16

Non-Domestic Rate Distributable Amount
(£000s) 1
Scotland 2,788,500
Aberdeen City 210,116
Aberdeenshire 92,096
Angus 30,792
Argyll & Bute 27,840
Clackmannanshire 15,853
Dumfries & Galloway 50,827
Dundee City 60,431
East Ayrshire 32,850
East Dunbartonshire 25,188
East Lothian 26,079
East Renfrewshire 16,553
Edinburgh, City of 390,862
Eilean Siar 7,920
Falkirk 62,336
Fife 166,642
Glasgow City 382,435
Highland 127,403
Inverclyde 23,642
Midlothian 31,822
Moray 36,789
North Ayrshire 42,931
North Lanarkshire 122,426
Orkney Islands 9,490
Perth & Kinross 59,337
Renfrewshire 102,915
Scottish Borders 33,707
Shetland Islands 16,882
South Ayrshire 42,683
South Lanarkshire 315,984
Stirling 45,400
West Dunbartonshire 84,053
West Lothian 94,216

Source: Amendment Order Scotland (2015)

1. The Distributable Amount is the amount distributed to local authorities as part of the GAE; it is based upon an estimate of the NDR income, including prior year adjustments. It is not guaranteed to match the income eventually received by the SG that year (as given in tables 1.14 and 1.15)

1.6 Customer and Client Receipts

Local authorities receive income from sales, rents, fees and charges as a result of providing a range of services. The amount of income associated with each service is detailed in Table 1.18 below.

The total customer and client receipts received by local authorities has increased by 2.3%, from £2.37 billion in 2014-15 to £2.42 billion in 2015-16. In the General Fund this has increased by 2.1%, from £1.26 billion in 2014-15 to £1.28 billion in 2015-16. Almost half (47%) of customer and client receipts are attributable to the HRA which has seen receipts increase by 2.6% from £1.11 billion to £1.14 billion in 2015-16.

Table 1.18: Customer and Client Receipts - 2011-12 to 2015-16

£thousands

2011-12 2012-13 2013-14 b 2014-15 2015-16
Education 115,017 113,355 120,563 124,200 122,477
Cultural & Related Services 77,479 70,728 71,185 72,567 68,826
Social Work 268,101 276,450 276,012 275,301 264,079
Roads & Transport 171,756 154,197 175,384 182,690 182,978
Environmental Services 117,767 117,969 117,457 112,180 123,825
Planning & Development Services 118,518 116,541 121,077 120,161 134,682
Central Services 143,521 110,889 131,709 143,806 162,394
Non- HRA Housing 179,116 165,412 160,800 155,076 159,635
Trading Services 63,526 58,045 69,843 69,639 63,077
Total General Fund ( GF) Customer and Client Receipts excluding Police & Fire 1,254,801 1,183,586 1,244,030 1,255,620 1,281,973
Housing Revenue Account ( HRA) 1 965,920 1,034,306 1,073,362 1,112,210 1,140,720
Total GF + HRA Customer and Client Receipts, excluding Police & Fire 2,220,721 2,217,892 2,317,392 2,367,830 2,422,693
Police, Fire & Emergency Planning 66,575 111,992
Total GF + HRA Customer and Client Receipts 2,287,296 2,329,884 2,317,392 2,367,830 2,422,693

1. The Housing Revenue Account ( HRA) records income and expenditure relating to the provision of Local Authority housing.
b. The Police and Fire Reform (Scotland) Act 2012 created Police Scotland and Fire Scotland, which replaced the former Police and Fire Boards. These new bodies are classified as Central Government, rather than Local Government.
Source: Local Financial Returns ( LFRs)


Contact

Email: Euan Smith