Scottish Local Government Financial Statistics 2009-10

2 LOCAL GOVERNMENT INCOME - WHERE THE MONEY COMES FROM

KEY SUMMARY FACTS

• Total Revenue income in 2009-10 was £17.9 billion.
• Total Capital income in 2009-10 was £1.1 billion.
• Council Tax income was £1.9 billion.
• There were 2,377,474 Council Tax chargeable dwellings in September 2010.
• The Scotland average Council Tax band D level was £1,149 in 2009-10.
• Distributable Non-domestic rate income in 2009-10 was £2.2 billion.
• There were 213,311 properties on the Valuation Roll at 1 April 2010 with a total rateable value of £6,612 million.
• Total capital grants in 2009-10 were £875 million.
• Total capital receipts in 2009-10 were £229 million.
• General Revenue Funding ( GRF) income in 2009-10 was £7.8 billion.
• Total Revenue Funding ( TRF) in 2009-10 was £10.8 billion.

The main sources of Local Government income are ¹:

• Grants from the Scottish Government consisting of Revenue Grants and Capital Grants
• Local Taxes consisting of Council Tax and Non-domestic Rates
• Sales, Fees and Charges
• Other Revenue Income
• Capital Receipts from asset sales
• Other Capital Income
• Investment Income

Table 2.1 - Summary of Local Government Income by Source

£ Million

	2005-06	2006-07	2007-08	2008-09	2009-10
Revenue Income
Revenue Grants 1	8,862	9,284	9,834	10,377	10,845
Council Tax 2	1,720	1,812	1,890	1,909	1,910
Non Domestic rates	1,897	1,884	1,860	1,963	2,165
Sales, Rents, Fees & Charges	1,959	2,047	2,132	2,262	2,287
Other income 3,4	1,153	1,001	883	770	676
Total revenue income	15,591	16,027	16,599	17,281	17,883
Capital Income
Capital Receipts	366	451	514	230	229
Government Grants	210	520	707	595	760
Other Grants and Contributions	72	93	142	155	115
Other Income	3	2	.	.	.
Total capital income	651	1,066	1,362	979	1,105
TOTAL INCOME	16,242	17,094	17,961	18,260	18,988

1. Includes Council Tax Benefit ( CTB)
2. Excludes CTB
3. See section 2.5 for more detail on what is contained under other revenue income.
4. No longer includes Superannuation Fund income. For this figure, see Table 5.3.

Chart 2.1 - Summary of income by source, 2009-10

2.1 Revenue Grants

The main sources of revenue income for local government are General Revenue Funding, formerly referred to as the Revenue Support Grant, and Ring-fenced Revenue Grants, formerly referred to as Specific Grants. Together with non-domestic rates income, these sources of income constitute Total Revenue Funding ( TRF), formerly referred to as Aggregate External Finance.

General Revenue Funding ( GRF) is paid by the Scottish Government in support of local authorities' general net revenue expenditure. It is the residual element after non-domestic rates income and ring-fenced revenue grants have been deducted from TRF. Unlike ring-fenced revenue grants, no conditions are imposed on how the money is spent.

Ring-fenced revenue grants are made to local authorities for a specific named purpose, or with the intention of achieving a specific policy objective. The relevant policy division of the Scottish Government allocates each local authority's share of ring-fenced revenue grants.

The total amounts of ring-fenced revenue grants within TRF are determined in advance as part of the local authority finance settlement. As well as the ring-fenced revenue grants which form part of TRF, local authorities can receive other grants in addition to TRF. These grants are demand led and generally do not have an established means of distribution that can be applied in advance. Table 2.2 below shows a breakdown of the Revenue Grants received by local authorities and their growth over time.

Table 2.2 - Revenue Grants

£ thousands

	2005-06	2006-07	2007-08	2008-09	2009-10
General Revenue Funding 1	5,567,902	5,777,204	6,169,645	7,425,884	7,756,689
Ring-fenced Revenue Grants 2	756,874	888,171	869,938	723,776	757,818
Council Tax Benefit Subsidy	354,067	359,159	354,030	351,165	368,381
Other Grants and Subsidies 3	2,183,263	2,259,326	2,440,774	1,875,863	1,962,249
Total Revenue Grants	8,862,106	9,283,860	9,834,387	10,376,688	10,845,137

1. Prior to 2008-09 this was Revenue Support Grant
2. Prior to 2008-09 this was Specific Grants
3. Decrease in 2008-09 due to rolling up of previously ring-fenced grants

In the 2008-09 local government finance revenue settlement, many formerly ring-fenced revenue grants were rolled up into GRF. A few examples ² of these rolled up grants include the Supporting People Grant, the Strategic Waste Fund and the National Priorities Action Fund. These formerly ring-fenced grants would have been recorded as either Ring-fenced Revenue Grants or Other Grants and Subsidies for the financial years up to and including 2007-08. From 2008-09, the rolled up grants have been recorded as part of GRF. As a result of this change to grant distribution and recording, the level of GRF is showing a much larger than usual increase from 2007-08 to 2008-09, while both Ring-fenced Revenue Grants and Other Grants and Subsidies are showing corresponding decreases in their level of funding from 2007-08 to 2008-09.

2.2 Council Tax

Council Tax was introduced in Scotland on the 1 ^st April 1993 to replace the Community Charge system. It is a tax system based on dwellings. A dwelling is classified as any kind of flat or house that is used as a place of residence. Each dwelling is placed into one of the 8 council tax bands (A to H) depending on the market value of the dwelling as at the 1 ^st April 1991. Table 2.3 details the band boundaries, the ratio to band D council tax (the multiplier) and the number of chargeable dwellings in each band by local authority.

Table 2.3 - Chargeable Dwellings ¹ by Council Tax Band & Local Authority (as at 6 September 2010)

	Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H	Total
Valuation band ranges	Under 27,000	27,001 to 35,000	35,001 to 45,000	45,001 to 58,000	58,001 to 80,000	80,001 to 106,000	106,001 to 212,000	Over 212,000
Ratio to band D	6/9	7/9	8/9	1	11/9	13/9	15/9	18/9
Scotland	517,443	567,337	378,367	305,885	312,142	173,300	111,230	11,770	2,377,474
Aberdeen City	19,517	25,873	16,655	11,784	13,048	7,751	6,926	789	102,343
Aberdeenshire	19,589	15,334	13,400	16,135	19,431	14,015	8,481	514	106,899
Angus	14,417	12,202	6,687	7,794	6,940	2,817	1,472	144	52,473
Argyll & Bute	7,305	9,353	8,712	5,713	6,920	3,880	2,631	208	44,722
Clackmannanshire	6,065	6,973	1,906	2,384	3,080	1,744	788	41	22,981
Dumfries & Galloway	10,705	22,029	11,218	9,319	9,891	4,645	2,252	154	70,213
Dundee City	25,275	15,361	7,799	7,969	6,163	2,165	977	33	65,742
East Ayrshire	25,657	9,189	4,652	6,211	5,795	2,732	828	41	55,105
East Dunbartonshire	1,130	3,539	7,928	6,986	10,711	6,588	5,843	536	43,261
East Lothian	1,127	8,818	14,053	5,395	5,588	4,333	3,487	595	43,396
East Renfrewshire	1,212	4,992	3,803	6,060	7,854	5,843	5,734	670	36,168
Edinburgh, City of	20,166	42,806	39,509	33,112	34,819	22,012	19,350	3,458	215,232
Eilean Siar	4,482	3,569	2,667	1,622	1,041	154	31	4	13,570
Falkirk	21,456	18,758	6,317	8,095	8,027	4,711	2,117	59	69,540
Fife	39,050	46,632	20,596	18,308	21,109	11,786	5,718	367	163,566
Glasgow City	62,373	73,713	60,254	36,004	25,179	11,189	5,745	604	275,061
Highland	18,638	22,021	21,360	16,884	16,652	8,045	3,813	307	107,720
Inverclyde	19,233	5,228	3,100	3,120	3,308	1,754	1,358	202	37,303
Midlothian	948	11,834	9,954	4,158	4,019	2,373	1,624	155	35,065
Moray	11,318	9,873	5,870	5,541	4,997	1,776	545	51	39,971
North Ayrshire	21,293	17,880	6,350	6,308	8,477	3,380	1,140	50	64,878
North Lanarkshire	52,475	36,204	18,110	14,776	14,668	6,905	2,415	118	145,671
Orkney Islands	2,312	2,632	2,038	1,555	1,090	224	18	3	9,872
Perth & Kinross	8,509	14,161	10,976	9,787	10,867	6,757	5,238	618	66,913
Renfrewshire	12,354	25,018	13,064	10,657	9,920	5,522	3,197	180	79,912
Scottish Borders	15,745	12,189	6,305	5,453	5,915	4,244	3,822	410	54,083
Shetland Islands	2,893	1,726	2,550	1,645	1,176	216	54	0	10,260
South Ayrshire	6,972	12,229	8,362	7,964	9,255	4,504	2,868	259	52,413
South Lanarkshire	34,975	28,617	23,945	18,353	17,581	9,943	5,300	389	139,103
Stirling	5,459	8,147	3,918	4,030	5,780	4,820	4,547	618	37,319
West Dunbartonshire	7,683	16,584	7,212	5,446	4,095	1,517	564	41	43,142
West Lothian	17,110	23,853	9,097	7,317	8,746	4,955	2,347	152	73,577

1. Excludes dwellings exempt from council tax

Each local authority determines its own level of council tax as part of their budget setting process, and is responsible for its billing and collection. Council tax is used as a source of funding to make up the difference between the amount of money a local authority wishes to spend, and the amount of funding it receives from other sources (such as GRF and ring-fenced revenue grants). The Scotland band D council tax level, and its change over time, can be seen in table 2.4.

Table 2.4 - Scotland Council Tax Levels

	2005-06	2006-07	2007-08	2008-09	2009-10	2010-11
Scotland Average Band D Council Tax (£) 1	1,094	1,129	1,149	1,149	1,149	1,149
Band D % increase (cash terms)	3.9	3.2	1.8	0.0	0.0	0.0
Band D % increase (real terms 2)	1.8	0.5	-1.2	-3.2	-1.5	-2.2
Average Council Tax Bill per Dwelling (£) 3	925	958	980	983	987	985

1. In 2010-11, Council Tax rates were frozen in all local authorities at 2007-08 levels.
2. Real terms figures are calculated using GDP deflators
3. This average is taken over all chargeable dwellings and is affected by a number of factors such as the distribution of dwellings across council tax bands, discounts and exemptions.

Each individual bill is calculated by applying the multiplier for each band (see table 2.3) to the band D level, (and then any discounts are applied). Therefore, bills vary according to council tax band, but also by Local Authority as shown in Map 2.1. The changes in Band D council tax levels by local authority over time are shown in table 2.5.

Table 2.5 - Band D Council Tax by Local Authority (£)

	2005-06	2006-07	2007-08	2008-09	2009-10	2010-11
Scotland	1,094	1,129	1,149	1,149	1,149	1,149
Aberdeen City	1,162	1,196	1,230	1,230	1,230	1,230
Aberdeenshire	1,065	1,113	1,141	1,141	1,141	1,141
Angus	1,037	1,072	1,072	1,072	1,072	1,072
Argyll & Bute	1,117	1,156	1,178	1,178	1,178	1,178
Clackmannanshire	1,074	1,127	1,148	1,148	1,148	1,148
Dumfries & Galloway	988	1,018	1,049	1,049	1,049	1,049
Dundee City	1,180	1,211	1,211	1,211	1,211	1,211
East Ayrshire	1,116	1,171	1,189	1,189	1,189	1,189
East Dunbartonshire	1,078	1,121	1,142	1,142	1,142	1,142
East Lothian	1,069	1,096	1,118	1,118	1,118	1,118
East Renfrewshire	1,053	1,105	1,126	1,126	1,126	1,126
Edinburgh, City of	1,126	1,152	1,169	1,169	1,169	1,169
Eilean Siar	956	999	1,024	1,024	1,024	1,024
Falkirk	999	1,045	1,070	1,070	1,070	1,070
Fife	1,050	1,091	1,118	1,118	1,118	1,118
Glasgow City	1,213	1,213	1,213	1,213	1,213	1,213
Highland	1,086	1,135	1,163	1,163	1,163	1,163
Inverclyde	1,176	1,206	1,198	1,198	1,198	1,198
Midlothian	1,176	1,210	1,210	1,210	1,210	1,210
Moray	1,045	1,096	1,135	1,135	1,135	1,135
North Ayrshire	1,075	1,125	1,152	1,152	1,152	1,152
North Lanarkshire	1,041	1,077	1,098	1,098	1,098	1,098
Orkney Islands	973	1,007	1,037	1,037	1,037	1,037
Perth & Kinross	1,088	1,136	1,158	1,158	1,158	1,158
Renfrewshire	1,091	1,143	1,165	1,165	1,165	1,165
Scottish Borders	1,019	1,064	1,084	1,084	1,084	1,084
Shetland Islands	981	1,017	1,053	1,053	1,053	1,053
South Ayrshire	1,063	1,111	1,154	1,154	1,154	1,154
South Lanarkshire	1,040	1,076	1,101	1,101	1,101	1,101
Stirling	1,149	1,201	1,223	1,209	1,209	1,209
West Dunbartonshire	1,113	1,138	1,163	1,163	1,163	1,163
West Lothian	1,074	1,101	1,128	1,128	1,128	1,128

Map 2.1 Band D Council Tax bill amount per local authority, 2009-10

Not all dwellings are liable to pay full council tax. A dwelling may be eligible for a discount or exemption dependent on the personal circumstances of the persons resident in the dwelling. If a dwelling is exempt there is no council tax payable in respect of that dwelling. If a dwelling is eligible for a discount then the discount may range from 10% to 50% depending on the nature of the discount.

An exempt dwelling can be occupied or unoccupied. Examples of unoccupied exempt dwellings include dwellings that are unoccupied and unfurnished for up to 6 months, dwellings that cannot be occupied because they are in need of structural repair, or are being improved or reconstructed, or an unoccupied dwelling where the liable person was formerly resident and has moved to receive personal care elsewhere. Occupied dwellings eligible for exemption include dwellings that are the sole residence of only persons under the age of 18, dwellings occupied only by students, and dwellings used as trial flats by registered housing associations.

Where only one council tax liable adult resides in a dwelling they are entitled to claim a 25% discount on their council tax bill. Where a dwelling is classed as a second home or long term empty, that dwelling is entitled to claim a discount of between 10% and 50% depending on the Local Authority. Unoccupied dwellings may also be eligible for a 50% discount for the 6 months after the initial 6 month exemption.

A breakdown of council tax dwellings by classification as chargeable, discounted, or exempt from 2006 to 2010 is given below in table 2.6.

Table 2.6 - Chargeable dwellings, Discounts and Exemptions ¹

	2006	2007	2008	2009	2010
Total dwellings	2,417,759	2,442,284	2,462,571	2,477,397	2,488,928
Dwellings exempt	103,105	106,394	112,838	112,168	111,454
Chargeable dwellings	2,314,654	2,335,890	2,349,733	2,365,229	2,377,474
Chargeable dwellings subject to:
25% discount	918,199	929,326	929,246	936,957	941,915
Second Homes 2	36,167	35,057	35,036	37,060	38,002
Long Term Empty 2	16,656	20,328	22,784	22,169	24,598
Occupied entirely by disregarded adults	4,283	3,394	1,986	2,668	1,887
Dwellings not subject to discount	1,339,349	1,347,785	1,360,681	1,366,375	1,371,072

1. As at the first Monday in September of each year
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.

At the start of each financial year local authorities issue council tax bills to households liable for each bill. Local authorities collect council tax income relating to these bills, and also continue to collect late amounts from previous billing years ³. At the end of the financial year each local authority reports the amount of council tax it has collected to the Scottish Government. The amounts of council tax income collected in-year for 2009-10 (relating to that billing year) are reported in table 2.7 below.

Table 2.7 - Council Tax Income by Local Authority, 2009-10

£ thousands

	Council Tax Income (excl CTB)1	Council Tax Benefit Subsidy ( CTB)	Council Tax Income (incl CTB) 1
Scotland	1,909,627	368,381	2,278,008
Aberdeen City	94,361	11,020	105,381
Aberdeenshire	108,239	8,490	116,729
Angus	39,588	5,809	45,397
Argyll & Bute	40,191	5,836	46,027
Clackmannanshire	17,789	3,602	21,391
Dumfries & Galloway	52,566	8,971	61,537
Dundee City	45,404	13,158	58,562
East Ayrshire	37,537	10,057	47,594
East Dunbartonshire	47,603	4,945	52,548
East Lothian	39,531	5,560	45,091
East Renfrewshire	39,909	4,008	43,917
Edinburgh, City of	197,448	29,950	227,398
Eilean Siar	8,335	1,833	10,168
Falkirk	50,695	8,668	59,363
Fife	128,394	22,396	150,790
Glasgow City	178,739	72,590	251,329
Highland	94,275	13,158	107,433
Inverclyde	25,867	7,188	33,055
Midlothian	31,861	5,139	37,000
Moray	33,065	4,055	37,120
North Ayrshire	45,547	11,675	57,222
North Lanarkshire	95,634	26,252	121,886
Orkney Islands	6,748	888	7,636
Perth & Kinross	64,245	6,763	71,008
Renfrewshire	62,024	13,412	75,436
Scottish Borders	43,159	5,757	48,916
Shetland Islands	7,705	775	8,480
South Ayrshire	44,037	8,744	52,781
South Lanarkshire	104,730	22,645	127,375
Stirling	38,861	4,824	43,685
West Dunbartonshire	28,691	10,019	38,710
West Lothian	56,849	10,194	67,043

1- Includes Community Charge

2.3 Non-Domestic Rates

The principles of Non-domestic Rates ( NDR) were established in the Lands Valuation (Scotland) Act of 1854. This Act also provided for the appointment of Assessors, who are responsible for determining the classification of a property as domestic or non-domestic and assigning a valuation. A non-domestic property is an individual property used for non-domestic purposes. They can include businesses, public buildings and advertising hoardings. The value given to a property is called its rateable value. Assessors list each property on the Valuation Roll with its corresponding rateable value that is used to calculate its NDR bill. Tables 2.8 and 2.9 show the composition of the properties on the Valuation Roll by Classification, Local Authority and Valuation band.

Business rate revaluations normally take place every five years. The most recent revaluation came into effect on 1 April 2010. The purpose of revaluation is to ensure that the tax burden is distributed fairly by taking account of changes over time in market conditions and individual business circumstances. At each revaluation, the Scottish Assessors, who are independent of both the Scottish Government and local authorities, assess a rateable value for each non-domestic (business) property in Scotland by taking account of the type and nature of the property in question. The next revaluation is scheduled to take effect on 1 April 2015.

Table 2.8 - Non-Domestic Rates Properties by Classification (as at 1 April 2010)

CATEGORY	Number of properties	Rateable value (£000s)
	1 st April 2010	1 st April 2010
Advertising	1,973	8,399
Care Facilities	3,199	102,476
Communications	389	15,303
Cultural	1,362	41,298
Education and Training	3,938	496,220
Garages and Petrol Stations	4,456	66,184
Health and Medical	3,109	191,821
Hotels	4,580	179,631
Industrial Subjects	45,112	1,106,609
Leisure, Entertainment, Caravans etc.	18,506	225,872
Offices	36,648	1,110,188
Other	12,774	85,074
Petrochemical	145	112,707
Public Houses	4,021	117,322
Public Service Subjects	10,117	310,328
Quarries, Mines, etc.	705	24,187
Religious	6,304	53,305
Shops	52,670	1,586,233
Sporting Subjects	2,753	17,948
Statutory Undertaking	550	761,381
TOTAL ALL NON-DOMESTIC PROPERTIES	213,311	6,612,485

Table 2.9 - Non-Domestic Rates Properties by Local Authority (as at 1 April 2010) ¹

Local Authority	Rateable Value Band			Total Non-Domestic Properties
	<= £18,000	£18,001 to £34,999	>= £35,000
Scotland	164,514	19,911	28,886	213,311
Aberdeen City	4,879	1,143	2,248	8,270
Aberdeenshire	9,127	751	919	10,797
Angus	4,057	365	392	4,814
Argyll & Bute	6,900	339	352	7,591
Clackmannanshire	1,256	137	148	1,541
Dumfries & Galloway	7,820	496	538	8,854
Dundee City	4,052	619	997	5,668
East Ayrshire	3,043	323	399	3,765
East Dunbartonshire	1,643	302	306	2,251
East Lothian	2,659	264	323	3,246
East Renfrewshire	1,203	209	226	1,638
Edinburgh, City of	12,401	2,436	3,943	18,780
Eilean Siar	1,921	99	112	2,132
Falkirk	3,549	482	688	4,719
Fife	9,866	1,212	1,619	12,697
Glasgow City	17,190	2,928	4,817	24,935
Highland	14,377	956	1,345	16,678
Inverclyde	1,747	222	311	2,280
Midlothian	2,118	249	357	2,724
Moray	3,814	248	355	4,417
North Ayrshire	3,943	389	501	4,833
North Lanarkshire	6,379	1,034	1,550	8,963
Orkney Islands	1,767	116	93	1,976
Perth & Kinross	6,783	576	719	8,078
Renfrewshire	4,451	621	958	6,030
Scottish Borders	6,099	408	412	6,919
Shetland Islands	1,662	97	143	1,902
South Ayrshire	3,539	450	552	4,541
South Lanarkshire	6,741	1,135	1,476	9,352
Stirling	3,838	437	563	4,838
West Dunbartonshire	2,015	273	416	2,704
West Lothian	3,675	595	1,108	5,378

1- Includes properties with zero rateable value.

NDR bills are calculated by multiplying the rateable value of a property by the poundage rate. The Scottish Government sets the rate poundage, which applies to the whole of Scotland. In 2006-07, Scottish Ministers committed to the equalisation of the Scottish poundage rate with that of England, and in 2007-08 this was achieved. The annual NDR Income, total Rateable Value, and Poundage Rate, as well as their changes over time, are shown in table 2.10. Due to the 2010 revaluation, the total Rateable Value of Non-domestic properties (the tax base) increased from £5.3 billion in 2009-10 to £6.6 billion in 2010-11, however, the overall impact on Non-Domestic rate bills will be zero over the 5 year revaluation cycle as the poundage reduction must be taken into account when calculating bills. Additionally, exempt properties (which do not pay rates), along with the impact of appeals and relief schemes such as the Small Business Bonus Scheme, will also significantly reduce the amount paid in bills.

The cumulative Rateable Value for the Valuation Roll at the end of the 2009-10 financial year and NDR Income for 2009-10 and 2010-11 per Local Authority are given in Table 2.11.

Table 2.10 - Non-Domestic Rates Income, Total Rateable Values and Poundage Rates

	2005-06	2006-07	2007-08	2008-09	2009-10	2010-11
Non Domestic Rates Income (£m) 1	1,933	1,933	1,921	1,933	2,015	2,164
Total Rateable Value (£m)	5,063	5,186	5,239	5,296	5,299	6,612
Poundage Rate (pence)	46.1	44.9	44.1	45.8	48.1	40.7

1. Mid-year estimate of income for 2010-11

Table 2.11 - Non-Domestic Rates Properties, Rateable Values and Income By Local Authority ^1,2

Authority	Non-Domestic Properties April 2010	Non-Domestic Rateable Values 3 April 2010	Non-Domestic Rate income
			2009-10	2010-11 4
		(£000s)	(£000s)	(£000s)
Scotland	213,311	6,612,485	2,014,616	2,163,520
Aberdeen City	8,270	447,608	140,067	160,062
Aberdeenshire	10,797	199,422	57,783	68,088
Angus	4,814	76,634	21,669	23,192
Argyll & Bute	7,591	83,526	25,247	25,365
Clackmannanshire	1,541	37,952	10,832	12,179
Dumfries & Galloway	8,854	109,668	35,919	38,162
Dundee City	5,668	196,483	59,922	60,796
East Ayrshire	3,765	80,838	25,160	25,104
East Dunbartonshire	2,251	63,848	19,845	20,174
East Lothian	3,246	63,805	18,000	19,155
East Renfrewshire	1,638	37,962	11,862	11,875
Edinburgh, City of	18,780	905,787	291,893	294,923
Eilean Siar	2,132	20,434	5,432	5,932
Falkirk	4,719	167,778	55,589	55,048
Fife	12,697	425,498	120,602	133,862
Glasgow City	24,935	976,977	303,582	300,579
Highland	16,678	286,273	82,810	94,565
Inverclyde	2,280	56,831	18,497	18,542
Midlothian	2,724	73,308	21,138	23,057
Moray	4,417	82,994	24,692	26,824
North Ayrshire	4,833	105,518	30,604	32,802
North Lanarkshire	8,963	291,886	97,989	95,939
Orkney Islands	1,976	24,166	6,757	7,656
Perth & Kinross	8,078	144,196	44,559	44,901
Renfrewshire	6,030	243,497	74,155	84,515
Scottish Borders	6,919	85,098	22,593	23,745
Shetland Islands	1,902	43,066	12,206	14,187
South Ayrshire	4,541	107,661	33,639	34,540
South Lanarkshire	9,352	681,990	176,793	241,911
Stirling	4,838	113,142	36,379	31,621
West Dunbartonshire	2,704	171,009	59,646	65,419
West Lothian	5,378	207,632	68,758	68,798

1. The most recent business rates revaluation came into effect on 1st April 2010
2. A number of individual councils collect certain rates bills on hehalf of all 32 councils. For example, Fife collects rates for Scottish Water, South Lanarkshire for Electricity Companies and Renfrewshire for Telecoms.
3. Includes those with a zero rateable value.
4. Mid-year estimate.

The figures presented in Table 2.11 are shown net of reliefs. Relief ⁴ arrangements apply to properties including, but not exhaustively, qualifying village stores, post offices, petrol stations and public houses/hotels, stud farms, empty properties, properties owned by charities and premises used for religious worship. From 1 April 2008, the Small Business Rates Relief Scheme ( SBRRS) was replaced by the Small Business Bonus Scheme ( SBBS), both of which targeted properties with rateable values on the lower end of the spectrum. The cost of the SBBS scheme is much greater than that of the former SBRRS, resulting in a larger than usual increase in the gross amount of reliefs awarded from 2007-08 to 2008-09. In 2009-10 the mandatory element of reliefs for Sports Clubs were collected separately from the discretionary element for the first time. Table 2.12 shows the amounts of the main reliefs received from 2005-06 to 2009-10.

Table 2.12 - Non-Domestic Rates Reliefs By Relief Type

£ thousands

		2005-06	2006-07	2007-08	2008-09	2009-10 1
Mandatory	Unoccupied Property/Partly Unoccupied Property	131,112	130,155	119,957	127,385	153,361
	Charities	90,998	93,423	97,361	102,475	110,264
	Sports Clubs 2	..	..	..	..	2,279
	Disabled persons relief	40,668	40,079	40,040	42,914	45,484
	SBRRS/ SBBS3	24,052	24,321	24,686	72,553	108,435
	Religious Properties	18,668	18,439	18,146	18,986	20,218
	Rural Rate Relief	945	927	924	936	960
	Former Agricultural Premises 4	10	12	14	.	.
Discretionary	Charities & other organisations	9,095	9,428	10,405	10,943	12,007
	Sports Clubs	9,473	9,309	9,173	9,651	9,325
	Rural Rate relief	2,952	2,964	2,977	2,952	2,958
	Backdated relief for Sports Clubs & Charities	26	181	38	101	45
	Hardship	192	3	20	27	19
	Former Agricultural Premises 4	3	4	5	.	.
	Stud Farms	-	-	-	-	-
Gross Amount		328,196	329,244	323,746	388,921	465,356

1. Provisional notified General Revenue Funding ( GRF) is guaranteed this means that any reduction in the amount of NDR collected is compensated for by a corresponding increase in GRF and vice versa.

The calculation of the distributable amount for 2009-10 is given in Annex D. The 2009-10 distributable amount per Local Authority is shown in table 2.13.

Table 2.13 - Non-Domestic Rates Distributable Amount By Local Authority, 2009-10

£ Thousands

	Non-Domestic Rate Income
Scotland	2,165,100
Aberdeen City	88,074
Aberdeenshire	100,659
Angus	46,242
Argyll & Bute	38,448
Clackmannanshire	21,002
Dumfries & Galloway	62,417
Dundee City	59,828
East Ayrshire	50,325
East Dunbartonshire	44,129
East Lothian	39,748
East Renfrewshire	37,568
Edinburgh, City of	197,002
Eilean Siar	11,069
Falkirk	63,435
Fife	151,728
Glasgow City	244,927
Highland	91,517
Inverclyde	34,125
Midlothian	33,464
Moray	36,562
North Ayrshire	57,139
North Lanarkshire	136,652
Orkney	8,359
Perth & Kinross	59,824
Renfrewshire	71,382
Scottish Borders	46,899
Shetland	9,238
South Ayrshire	47,008
South Lanarkshire	130,263
Stirling	37,118
West Dunbartonshire	38,338
West Lothian	70,611

estimate of relief expenditure for 2009-10
2. The mandatory element of Sports Club relief was not collected separately prior to 2009-10
3. From 1 April 2008, the Small Business Rates Relief Scheme was replaced with the Small Business Bonus Scheme.
4. Relief for Former Agricultural Premises was a time limited relief which ended at 31 March 2008

NDR income is collected by Local Authorities and pooled at the Scotland level. Each council, having collected its taxes, reports the Non-Domestic Rates collected to the Scottish Government to be included in the central pool. The amount to be re-distributed 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 and redistributed to individual local authorities on the basis of population shares. It is based upon a forecast of the NDR income and prior year adjustments, and is therefore not guaranteed to match the total contributions to the pool for that year.

The DA forms part of the Total Revenue Funding ( TRF), which represents the Government's revenue funding for core local government services. As the combined total of NDR income and

Source: Finance Circular 6/2009, available at: http://www.scotland.gov.uk/Topics/Government/local-government/17999/11203

2.4 Sales, Rents, Fees and Charges

Local Authorities receive income from sales, rents, fees and charges as a result of providing services. These services are wide ranging in nature, as is the amount of income associated with each service, as detailed in Table 2.14 below.

Table 2.14 - Sales, Rents, Fees and Charges

£ thousand

	2005-06	2006-07	2007-08	2008-09	2009-10
Education	87,716	84,863	93,253	85,691	87,115
Cultural & Related Services	77,415	76,337	81,421	78,621	85,516
Social Work	214,605	232,588	256,018	259,061	246,014
Police, Fire & Emergency Planning	59,933	49,878	55,564	88,557	93,043
Roads & Transport	112,201	143,723	145,226	146,605	165,941
Environmental Services	91,282	98,951	117,585	117,873	123,164
Planning & Economic Development	136,196	144,215	141,791	112,644	120,146
Non- HRA Housing	97,889	123,072	124,893	232,028	189,150
Central Services	98,098	101,932	130,075	141,455	144,819
Trading Services	55,928	55,488	56,544	70,810	66,992
Total GF Sales, Rents, Fees and Charges	1,031,263	1,111,047	1,202,370	1,333,345	1,321,900
HRA	904,509	911,946	909,126	920,146	955,710
Common Good Fund	7,719	7,892	7,342	8,324	9,073
Road Bridges	15,543	16,224	13,618	162	133
Total Sales, Rents, Fees and Charges	1,959,034	2,047,109	2,132,456	2,261,977	2,286,816

2.5 Other Revenue Income

Other revenue income consists of all other grants, reimbursements and contributions, some income from interest on revenue balances, and increases in revenue balances. All other grants, reimbursements and contributions consists of revenue income received to finance a project/function jointly undertaken with other non-government bodies and the value of the costs recharged to outside bodies (including other committees). Table 2.15 below details other income by fund or reserve.

Table 2.15 - Other Income, 2009-10

£ thousands

	2009-10
Other Grants, reimbursements and contributions	638,270
General Fund	618,877
Housing Revenue Account	5,942
Common Good	396
Road Bridges	13,055
Interest and Investment Income	35,619
General Fund	30,358
Housing Revenue Account	1,878
Common Good	3,296
Road Bridges	87
Increases in Revenue Balances	2,332
Total	676,221

2.6 Capital Grants

Capital grants consist of Scottish Government capital grants and other capital grants and contributions. From the 2008-09 financial year, Scottish Government capital grants have been broken down into three components, the Scottish Government General Capital Grant, Scottish Government Specific Capital Grants and Grants from Scottish Government Agencies and Non-departmental Public Bodies ( NDPBs). Other grants and contributions include grants from other local authorities, European Structural Funds, contributions from private developers or persons, and grants from the National Lottery. Table 2.16 details capital grants by source, and type of local authority.

Table 2.16 - Capital Grants income 2009-10 ^1,2

£ thousands

	Scotland	Unitary Authorities	Police Boards	Fire Boards	Regional Transport Partnerships	Bridge Authorities
Scottish Government General Capital Grant	448,496	446,252	2,244	-	-	-
Scottish Government Specific Capital Grants	155,704	103,086	3,277	22,675	26,666	-
Grants from Scottish Government Agencies and NDPBs	156,098	145,828	379	-	-	9,891
Grants from other Local Authorities/Joint Boards	24,615	4,392	19,768	-	455	-
European Union Structural Funds	1,088	1,088	-	-	-	-
Contributions from private developers or persons	28,881	28,859	-	22	-	-
Grants from the National Lottery	12,964	12,964	-	-	-	-
Other grants/ contributions	47,560	46,490	418	652	-	-
Total Grants	875,406	788,959	26,086	23,349	27,121	9,891

1. These figures are those reported by local authorities in their 2009-10 Final Capital Return. The figures in this table may not therefore necessarily agree with the breakdown of capital grants detailed in Finance Circular 9/2010.
2. Figures include Housing Revenue Account

2.7 Capital Receipts

Capital receipts are capital income, normally generated by the sale or disposal of an asset. They may only be applied to capital expenditure or for the write down of capital debt.

Table 2.17 details capital receipts raised by service type from 2005-06 to 2009-10. As can be seen in the table, within General Fund services, the service area with the greatest amounts of capital receipts has consistently been Other Services. This trend is reflective of advice given to local authorities to manage surplus assets centrally, rather than in their original service portfolios, so that any sales of these surplus assets can be managed most effectively. A detailed breakdown of Capital Receipts by Service for 2009-10 can be found in Annex E.

Table 2.17 - Service Breakdown of Capital Receipts Raised

£ thousands

	2005-06	2006-07	2007-08	2008-09	2009-10
Education	16,637	12,348	62,563	30,489	4,089
Culture & Related Services	6,536	3,260	12,697	2,594	2,243
Social Work	600	1,964	3,473	715	285
Police & Fire	4,877	4,644	4,112	4,908	3,709
Roads & Transport	8,357	5,407	5,849	1,928	742
Environmental Services	190	565	644	793	1,113
Planning & Economic Development	10,000	18,661	26,421	9,120	8,996
Trading Services	22	60	243	6	133
Other Services	85,143	178,906	168,348	43,557	142,394
Non- HRA Housing	274	262	454	211	602
Total General Fund Services	132,636	226,077	284,804	94,321	164,306
Housing Revenue Account	233,666	225,276	229,109	135,484	65,091
Total Services	366,302	451,353	513,913	229,805	229,397