Scottish Local Government Financial Statistics 2010-11

2 - LOCAL GOVERNMENT INCOME - WHERE THE MONEY COMES FROM

KEY SUMMARY FACTS

• Total Revenue income in 2010-11 was £18.1 billion.
• Total Capital income in 2010-11 was £0.793 billion.
• Council Tax income was £1.92 billion.
• There were 2,389,029 Council Tax chargeable dwellings in September 2011.
• The Scotland average Council Tax band D level was £1,149 in 2010-11.
• Distributable Non-domestic rate income in 2010-11 was £2.07 billion.
• There were 215,969 properties on the Valuation Roll at 1 April 2011 with a total rateable value of £6.68 billion.
• Total capital grants in 2010-11 were £651 million.
• Total capital receipts in 2010-11 were £142 million.
• General Revenue Funding (GRF) income in 2010-11 was £8.15 billion.
• Total Revenue Funding (TRF) in 2010-11 was £11.1 billion.

The main sources of Local Government income are¹:

• 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, 2006-07 to 2010-11

	£ Million
	2006-07	2007-08	2008-09	2009-10	2010-11
Revenue Income
Revenue Grants1	9,284	9,834	10,379	10,849	11,082
Council Tax2	1,812	1,890	1,909	1,910	1,923
Non Domestic rates	1,884	1,860	1,963	2,165	2,068
Sales, Rents, Fees & Charges	2,047	2,132	2,262	2,287	2,179
Other income3,4	966	866	770	676	800
Total revenue income	15,992	16,582	17,283	17,886	18,052
Capital Income
Capital Receipts	451	514	230	229	142
Government Grants	520	707	595	760	548
Other Grants and Contributions	93	142	155	115	104
Other Income	2	-	-	-	-
Total capital income	1,066	1,362	979	1,105	793

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, 2010-11

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
	2006-07	2007-08	2008-09	2009-10	2010-11
General Revenue Funding1	5,777,202	6,169,645	7,425,886	7,756,689	8,149,407
Ring-fenced Revenue Grants2	888,171	869,939	726,350	761,338	431,419
Council Tax Benefit Subsidy	359,159	354,030	351,165	368,381	375,142
Other Grants and Subsidies3	2,259,326	2,440,774	1,875,863	1,962,249	2,125,952
Total Revenue Grants	9,283,858	9,834,388	10,379,264	10,848,657	11,081,920

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 examples² 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 by Council Tax Band & Local Authority ( as at 5 September 2011)

Valuation band ranges	Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H	Total
	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	514,378	568,120	382,164	309,249	314,830	175,542	112,688	12,058	2,389,029
Aberdeen City	19,458	25,903	16,800	11,951	13,091	7,771	6,948	792	102,714
Aberdeenshire	19,625	15,296	13,517	16,253	19,695	14,262	8,705	531	107,884
Angus	14,440	12,245	6,715	7,881	6,997	2,851	1,485	148	52,762
Argyll & Bute	7,285	9,386	8,725	5,735	6,978	3,927	2,655	212	44,903
Clackmannanshire	6,080	7,022	1,915	2,392	3,088	1,762	798	41	23,098
Dumfries & Galloway	10,686	22,020	11,382	9,428	9,970	4,747	2,272	156	70,661
Dundee City	25,551	15,234	7,851	8,019	6,156	2,212	988	32	66,043
East Ayrshire	25,624	9,181	4,743	6,207	5,851	2,781	868	41	55,296
East Dunbartonshire	1,115	3,547	7,934	7,094	10,705	6,599	5,879	570	43,443
East Lothian	1,119	8,890	14,161	5,454	5,635	4,415	3,517	598	43,789
East Renfrewshire	1,175	5,003	3,867	6,155	7,885	5,839	5,779	682	36,385
Edinburgh, City of	20,285	43,026	39,599	33,191	35,063	22,095	19,515	3,566	216,340
Eilean Siar	4,500	3,604	2,689	1,637	1,090	160	33	4	13,717
Falkirk	21,508	18,756	6,341	8,134	8,085	4,813	2,186	60	69,883
Fife	38,992	46,616	20,757	18,533	21,363	11,978	5,810	380	164,429
Glasgow City	60,114	73,839	61,435	36,815	25,635	11,377	5,768	602	275,585
Highland	18,588	22,035	21,659	17,075	16,883	8,161	3,906	315	108,622
Inverclyde	18,686	5,419	3,214	3,136	3,337	1,780	1,362	205	37,139
Midlothian	943	11,854	10,006	4,244	4,083	2,461	1,655	157	35,403
Moray	11,322	9,986	5,979	5,587	5,093	1,821	559	50	40,397
North Ayrshire	21,178	17,852	6,417	6,374	8,542	3,446	1,146	52	65,007
North Lanarkshire	52,502	36,193	18,208	14,947	14,788	7,053	2,480	120	146,291
Orkney Islands	2,294	2,639	2,074	1,587	1,112	230	18	3	9,957
Perth & Kinross	8,478	14,213	11,059	9,858	10,911	6,816	5,336	631	67,302
Renfrewshire	12,298	24,958	13,194	10,734	9,920	5,548	3,199	199	80,050
Scottish Borders	15,710	12,218	6,436	5,493	6,003	4,352	3,902	424	54,538
Shetland Islands	2,858	1,750	2,573	1,679	1,206	225	55	-	10,346
South Ayrshire	7,038	12,195	8,431	8,013	9,297	4,542	2,874	267	52,657
South Lanarkshire	34,910	28,654	24,039	18,663	17,676	10,156	5,427	400	139,925
Stirling	5,386	8,127	3,940	4,093	5,823	4,837	4,619	622	37,447
West Dunbartonshire	7,606	16,535	7,269	5,546	4,084	1,529	579	45	43,193
West Lothian	17,024	23,924	9,235	7,341	8,785	4,996	2,365	153	73,823

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. Council tax levels remain constant at 2007-08 levels as a consequence of the council tax freeze agreed between the Scottish Government and local government.

Table 2.4 - Scotland Council Tax Levels

	2006-07	2007-08	2008-09	2009-10	2010-11	2011-12
Scotland Average Band D Council Tax (£)1	1,129	1,149	1,149	1,149	1,149	1,149
Band D % increase (cash terms)	3.2%	1.8%	0.0%	0.0%	0.0%	0.0%
Band D % increase (real terms2)	-0.2%	-1.0%	-2.7%	-1.6%	-3.0%	-2.4%
Average Council Tax Bill per Dwelling (£)3	958	980	983	987	985	984

1. Since 2008-09, Council Tax rates have been frozen 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, new construction and removal of demolished housing from the roll.

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, exemptions or reductions 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 (£)

	2006-07	2007-08	2008-09	2009-10	2010-11	2011-12
Scotland	1,129	1,149	1,149	1,149	1,149	1,149
Aberdeen City	1,196	1,230	1,230	1,230	1,230	1,230
Aberdeenshire	1,113	1,141	1,141	1,141	1,141	1,141
Angus	1,072	1,072	1,072	1,072	1,072	1,072
Argyll & Bute	1,156	1,178	1,178	1,178	1,178	1,178
Clackmannanshire	1,127	1,148	1,148	1,148	1,148	1,148
Dumfries & Galloway	1,018	1,049	1,049	1,049	1,049	1,049
Dundee City	1,211	1,211	1,211	1,211	1,211	1,211
East Ayrshire	1,171	1,189	1,189	1,189	1,189	1,189
East Dunbartonshire	1,121	1,142	1,142	1,142	1,142	1,142
East Lothian	1,096	1,118	1,118	1,118	1,118	1,118
East Renfrewshire	1,105	1,126	1,126	1,126	1,126	1,126
Edinburgh, City of	1,152	1,169	1,169	1,169	1,169	1,169
Eilean Siar	999	1,024	1,024	1,024	1,024	1,024
Falkirk	1,045	1,070	1,070	1,070	1,070	1,070
Fife	1,091	1,118	1,118	1,118	1,118	1,118
Glasgow City	1,213	1,213	1,213	1,213	1,213	1,213
Highland	1,135	1,163	1,163	1,163	1,163	1,163
Inverclyde	1,206	1,198	1,198	1,198	1,198	1,198
Midlothian	1,210	1,210	1,210	1,210	1,210	1,210
Moray	1,096	1,135	1,135	1,135	1,135	1,135
North Ayrshire	1,125	1,152	1,152	1,152	1,152	1,152
North Lanarkshire	1,077	1,098	1,098	1,098	1,098	1,098
Orkney Islands	1,007	1,037	1,037	1,037	1,037	1,037
Perth & Kinross	1,136	1,158	1,158	1,158	1,158	1,158
Renfrewshire	1,143	1,165	1,165	1,165	1,165	1,165
Scottish Borders	1,064	1,084	1,084	1,084	1,084	1,084
Shetland Islands	1,017	1,053	1,053	1,053	1,053	1,053
South Ayrshire	1,111	1,154	1,154	1,154	1,154	1,154
South Lanarkshire	1,076	1,101	1,101	1,101	1,101	1,101
Stirling	1,201	1,223	1,209	1,209	1,209	1,209
West Dunbartonshire	1,138	1,163	1,163	1,163	1,163	1,163
West Lothian	1,101	1,128	1,128	1,128	1,128	1,128

Map 2.1

Band D Council Tax Bill Amount by Local Authority, 2010-11

Not all dwellings are liable to pay full council tax. A dwelling may be eligible for a discount or exemption dependent on either the status of the dwelling or 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 these 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 2007 to 2011 is given below in Table 2.6.

Table 2.6 - Chargeable dwellings, Discounts and Exemptions

	2007	2008	2009	2010	2011
Total dwellings	2,442,284	2,462,571	2,477,397	2,488,928	2,500,769
Dwellings exempt	106,394	112,838	112,168	111,454	111,740
Chargeable dwellings	2,335,890	2,349,733	2,365,229	2,377,474	2,389,029
Chargeable dwellings subject to:
25% discount	929,326	929,246	936,957	941,915	945,515
Second Homes2	35,057	35,036	37,060	38,002	39,250
Long Term Empty2	20,328	22,784	22,169	24,598	25,356
Occupied entirely by disregarded adults	3,394	1,986	2,668	1,887	1,910
Dwellings not subject to discount	1,347,785	1,360,681	1,366,375	1,371,072	1,376,998

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 years³. 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 2010-11 (relating to that billing year) are reported in table 2.7 below.

Table 2.7 - Council Tax Income by Local Authority, 2010-11

	£ thousands
	Council Tax Income (excl CTB)1	Council Tax Benefit Subsidy (CTB)	Council Tax Income (incl CTB)1
Scotland	1,923,186	375,142	2,298,328
Aberdeen City	96,376	11,151	107,527
Aberdeenshire	109,881	8,600	118,481
Angus	39,582	6,050	45,632
Argyll & Bute	40,301	6,010	46,311
Clackmannanshire	17,800	3,718	21,518
Dumfries & Galloway	53,325	9,219	62,544
Dundee City	45,643	13,396	59,039
East Ayrshire	37,819	10,220	48,039
East Dunbartonshire	47,799	4,988	52,787
East Lothian	40,425	5,620	46,045
East Renfrewshire	40,418	4,115	44,533
Edinburgh, City of	197,715	29,824	227,539
Eilean Siar	8,304	1,819	10,123
Falkirk	50,744	8,899	59,643
Fife	129,696	22,072	151,768
Glasgow City	179,924	73,858	253,782
Highland	94,937	13,661	108,598
Inverclyde	25,343	7,291	32,634
Midlothian	31,884	5,389	37,273
Moray	33,659	4,131	37,790
North Ayrshire	45,646	12,104	57,750
North Lanarkshire	96,938	26,670	123,608
Orkney Islands	6,944	915	7,859
Perth & Kinross	64,177	7,079	71,256
Renfrewshire	61,911	13,898	75,809
Scottish Borders	44,179	5,955	50,134
Shetland Islands	7,841	788	8,629
South Ayrshire	44,300	9,033	53,333
South Lanarkshire	104,892	23,049	127,941
Stirling	38,847	4,926	43,773
West Dunbartonshire	29,030	10,125	39,155
West Lothian	56,906	10,569	67,475

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 2011)

	Number of properties	Rateable value (£000s)
CATEGORY	1st April 2011	1st April 2011
Advertising	1,987	8,317
Care Facilities	3,144	102,665
Communications	377	16,377
Cultural	1,376	42,005
Education and Training	3,924	502,023
Garages and Petrol Stations	4,514	69,358
Health and Medical	3,122	198,593
Hotels	4,655	181,967
Industrial Subjects	45,534	1,116,737
Leisure, Entertainment, Caravans etc.	19,197	229,992
Offices	37,307	1,135,617
Other	12,969	89,471
Petrochemical	142	113,187
Public Houses	3,973	115,752
Public Service Subjects	10,083	312,979
Quarries, Mines, etc.	697	26,722
Religious	6,305	53,760
Shops	52,732	1,605,904
Sporting Subjects	3,328	19,166
Statutory Undertaking	603	737,170
TOTAL ALL NON-DOMESTIC PROPERTIES	215,969	6,677,761

Table 2.9 - Non-Domestic Rates Subjects by Local Authority (as at 1 April 2011)¹

Local Authority	Rateable Value Band			Total Non-Domestic Properties
	<= £18,000	£18,001 to £34,999	>= £35,000
Scotland	166,830	19,964	29,175	215,969
Aberdeen City	4,972	1,165	2,278	8,415
Aberdeenshire	9,565	747	947	11,259
Angus	4,068	363	396	4,827
Argyll & Bute	6,947	336	356	7,639
Clackmannanshire	1,263	135	150	1,548
Dumfries & Galloway	7,903	503	561	8,967
Dundee City	4,092	617	992	5,701
East Ayrshire	3,132	324	406	3,862
East Dunbartonshire	1,656	302	311	2,269
East Lothian	2,688	257	326	3,271
East Renfrewshire	1,215	213	231	1,659
Edinburgh, City of	12,660	2,425	3,957	19,042
Eilean Siar	1,954	99	113	2,166
Falkirk	3,539	486	692	4,717
Fife	9,972	1,229	1,624	12,825
Glasgow City	17,196	2,916	4,866	24,978
Highland	14,486	965	1,374	16,825
Inverclyde	1,737	223	315	2,275
Midlothian	2,139	251	363	2,753
Moray	3,914	250	362	4,526
North Ayrshire	3,990	395	502	4,887
North Lanarkshire	6,467	1,029	1,561	9,057
Orkney Islands	1,771	114	96	1,981
Perth & Kinross	6,819	580	730	8,129
Renfrewshire	4,597	618	968	6,183
Scottish Borders	6,156	407	415	6,978
Shetland Islands	1,665	102	145	1,912
South Ayrshire	3,727	443	554	4,724
South Lanarkshire	6,857	1,147	1,487	9,491
Stirling	3,887	441	563	4,891
West Dunbartonshire	2,031	280	421	2,732
West Lothian	3,765	602	1,113	5,480

1. Includes properties with zero rateable value.

NDR bills are calculated by multiplying the rateable value of a property by the poundage rate. 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 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, revaluation is designed to be cost neutral, hence a drop in the poundage (from 48.1p to 40.7p) is seen for the same time period.

The cumulative Rateable Value for the Valuation Roll at the end of the 2010-11 financial year and NDR Income for 2010-11 and 2011-12 per Local Authority are given in Table 2.11.

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

	2007-08	2008-09	2009-10	2010-11	2011-12
Non Domestic Rates Income (£m) 1	1,928	1,924	2,010	2,136	2,239
Total Rateable Value (£m)	5,239	5,296	5,299	6,612	6,678
Poundage Rate (pence)	44.1	45.8	48.1	40.7	42.6

1. Notified estimate of income for 2010-11; mid-year estimate of income for 2011-12

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

Authority	Non-Domestic Properties	Non-Domestic Rateable Values3	Non-Domestic Rate income
			2010-114	2011-125
	April 2011	April 2011
		(£000s)	(£000s)	(£000s)
Scotland	215,969	6,677,761	2,136,388	2,239,162
Aberdeen City	8,415	448,688	155,672	162,842
Aberdeenshire	11,259	203,901	66,764	72,597
Angus	4,827	76,600	22,711	23,692
Argyll & Bute	7,639	85,693	25,620	26,200
Clackmannanshire	1,548	39,343	10,269	10,917
Dumfries & Galloway	8,967	120,419	37,959	40,966
Dundee City	5,701	197,470	58,825	49,612
East Ayrshire	3,862	82,562	25,426	26,250
East Dunbartonshire	2,269	64,951	20,137	21,044
East Lothian	3,271	67,839	19,677	21,274
East Renfrewshire	1,659	38,784	11,425	12,804
Edinburgh, City of	19,042	912,194	288,506	307,717
Eilean Siar	2,166	20,931	5,707	5,954
Falkirk	4,717	174,799	60,476	62,799
Fife	12,825	429,447	134,426	134,089
Glasgow City	24,978	983,090	297,399	306,833
Highland	16,825	301,188	93,300	104,973
Inverclyde	2,275	59,965	17,413	19,191
Midlothian	2,753	74,507	22,526	24,520
Moray	4,526	81,733	25,929	28,202
North Ayrshire	4,887	106,018	30,918	33,971
North Lanarkshire	9,057	298,921	94,425	100,399
Orkney Islands	1,981	24,680	7,643	8,117
Perth & Kinross	8,129	146,472	44,342	46,832
Renfrewshire	6,183	250,090	82,866	89,851
Scottish Borders	6,978	87,532	22,012	26,210
Shetland Islands	1,912	43,618	14,201	14,876
South Ayrshire	4,724	110,767	34,235	36,453
South Lanarkshire	9,491	648,058	235,013	251,250
Stirling	4,891	114,693	35,984	27,539
West Dunbartonshire	2,732	172,763	64,774	66,383
West Lothian	5,480	210,048	69,806	74,805

1. The most recent business rates revaluation came into effect on 1st April 2011
2. A number of individual councils collect certain rates bills on behalf 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. Notified estimate.
5. Mid-year estimate.

The figures presented in Table 2.11 are shown net of reliefs. Relief⁴ 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 2006-07 to 2010-11.

Table 2.12 - Non-Domestic Rates Reliefs by Relief Type

		£ thousands
		2006-07	2007-08	2008-09	2009-10	2010-111
Mandatory	Unoccupied Property/Partly Unoccupied Property	130,155	119,957	127,385	153,361	145,936
	Charities	93,423	97,361	102,475	110,264	123,417
	Sports Clubs2	0	0	0	2,683	4,394
	Disabled persons relief	40,079	40,040	42,914	45,484	51,888
	SBRRS/SBBS3	24,321	24,686	72,553	108,420	123,259
	Religious Properties	18,439	18,146	18,986	20,218	24,016
	Rural Rate Relief	927	924	936	960	1,059
	Former Agricultural Premises4	12	14	.	.	.
	Renewable Energy Relief Scheme5	0	0	0	0	3,560
Discretionary	Charities & other organisations	9,428	10,405	10,943	11,867	13,314
	Sports Clubs	9,309	9,173	9,651	8,921	8,835
	Rural Rate relief	2,964	2,977	2,952	2,958	3,070
	Backdated relief for Sports Clubs & Charities	181	38	101	45	56
	Hardship	3	20	27	19	4
	Former Agricultural Premises4	4	5	.	.	.
	Stud Farms	0	0	0	0	0
Gross Amount		329,244	323,746	388,921	465,201	502,810

1. Notified estimate of relief expenditure for 2010-11
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
5. The Renewable Energy Relief Scheme was introduced at 1 April 2010

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 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 2010-11 is given in Annex D. The 2010-11 distributable amount per Local Authority is shown in table 2.13.

Table 2.13 - Non-Domestic Rates Distributable Amount by Local Authority, 2010-11

	Non-Domestic Rate Income
Scotland	2,068,200
Aberdeen City	84,193
Aberdeenshire	96,621
Angus	44,141
Argyll & Bute	36,214
Clackmannanshire	20,200
Dumfries & Galloway	59,455
Dundee City	57,010
East Ayrshire	47,987
East Dunbartonshire	41,904
East Lothian	38,455
East Renfrewshire	35,702
Edinburgh, City of	188,733
Eilean Siar	10,484
Falkirk	60,652
Fife	144,812
Glasgow City	233,786
Highland	87,794
Inverclyde	32,325
Midlothian	32,237
Moray	35,122
North Ayrshire	54,389
North Lanarkshire	130,258
Orkney	7,959
Perth & Kinross	57,694
Renfrewshire	67,946
Scottish Borders	44,989
Shetland	8,795
South Ayrshire	44,685
South Lanarkshire	124,084
Stirling	35,354
West Dunbartonshire	36,390
West Lothian	67,830

Source: Finance Circular 9/2010 (Annex C), 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
	2006-07	2007-08	2008-09	2009-10	2010-11
Education	84,863	93,255	85,691	87,115	95,006
Cultural & Related Services	76,337	81,421	78,621	85,516	81,521
Social Work	232,588	256,018	259,061	246,014	251,167
Police, Fire & Emergency Planning	49,878	55,564	88,557	93,043	55,098
Roads & Transport	133,008	133,005	146,605	165,941	146,068
Environmental Services	98,951	117,585	117,873	123,164	120,400
Planning & Economic Development	144,215	141,791	112,644	120,146	97,897
Non-HRA Housing	123,072	124,893	232,028	189,150	164,339
Central Services	101,932	130,075	141,455	144,819	113,862
Trading Services	66,203	68,765	70,810	66,992	66,852
Total GF Sales, Rents, Fees and Charges	1,111,047	1,202,370	1,333,345	1,321,900	1,192,210
HRA	911,946	909,126	920,146	955,710	979,571
Common Good Fund	7,892	7,342	8,324	9,073	7,168
Road Bridges	16,224	13,618	162	133	89
Total Sales, Rents, Fees and Charges	2,047,109	2,132,456	2,261,977	2,286,816	2,179,038

1. The Housing Revenue Account (HRA) records income and expenditure relating to Local Authority housing stock

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

	2008-09	2009-10	2010-11
Other Grants, reimbursements and contributions	661,273	638,240	758,937
General Fund	637,719	618,847	741,031
Housing Revenue Account	4,086	5,942	2,309
Common Good	1,325	396	353
Road Bridges	18,143	13,055	15,244
Interest and Investment Income	106,994	35,387	30,655
General Fund	92,457	30,366	26,185
Housing Revenue Account	9,726	1,638	1,260
Common Good	4,352	3,296	3,157
Road Bridges	459	87	53
Increases in Revenue Balances	2,046	2,332	9,947
Total	770,313	675,959	799,539

2.6 Capital Grants

Capital grants are grants provided to local authorities to fund capital investment. The Scottish Government provides two types of grant funding to local authorities - a General Capital Grant and a number of ring-fenced grants. Scottish Government Agencies, such as Transport Scotland, and Non-Departmental Bodies, such as Sportscotland may also award grant for projects. 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, 2010-11^1,2

	£ thousands
	Scotland	Unitary Authorities	Police Boards	Fire Boards	Regional Transport Partnerships	Bridge Authorities	Valuation Boards
Scottish Government General Capital Grant	313,660	311,492	1,436	732	-	-	-
Scottish Government Ring Fenced Capital Grants	107,371	72,075	1,979	9,458	23,859	-	-
Grants from Scottish Government Agencies and NDPBs	126,721	113,363	723	-	100	12,535
Grants from other Local Authorities/Joint Boards	25,689	7,520	16,868	-	1,236	-	65
European Union Structural Funds	2,063	2,000	-	-	63	-	-
Contributions from private developers or persons	18,433	18,433	-	-	-	-	-
Grants from the National Lottery	8,421	8,421	-	-	-	-	-
Other grants/ contributions	48,946	45,717	714	277	2,145	-	93
Total Grants	651,304	579,021	21,720	10,467	27,403	12,535	158

1. These figures are those reported by local authorities in their 2010-11 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' is the term used to recognise income from the sale or disposal of a fixed asset, such as land or council housing. Under statute capital receipts may only be used to fund capital expenditure or for the repayment of the principal of loans.

Table 2.17 details capital receipts categorised by service from 2006-07 to 2010-11. In order to reflect the corporate nature of assets and to promote good asset management practices local authorities commonly move assets to "Central Services" (which forms part of the "Other Services" categorisation in this table) when they become identified as surplus for disposal. This can be seen from the table where in recent years for General Fund services, the greatest value of capital receipts has generally been reported against "Other Services". From 2009-10, Local authorities have been required to report Capital Receipts against the service with which the asset was last in use. A detailed breakdown of Capital Receipts by Service for 2010-11 can be found in Annex E.

Table 2.17 - Service Breakdown of Capital Receipts Raised

	£ thousands
	2006-07	2007-08	2008-09	2009-10	2010-11
Education	12,348	62,563	30,489	4,089	18,822
Culture & Related Services	3,260	12,697	2,594	2,243	12,013
Social Work	1,964	3,473	715	285	2,026
Police & Fire	4,644	4,112	4,908	3,709	3,834
Roads & Transport	5,407	5,849	1,928	742	913
Environmental Services	565	644	793	1,113	799
Planning & Economic Development	18,661	26,421	9,120	8,996	17,901
Trading Services	-	243	6	133	1,082
Other Services	178,906	168,348	43,557	142,394	18,613
Non-HRA Housing	262	454	211	602	453
Total General Fund Services	226,017	284,804	94,321	164,306	76,456
Housing Revenue Account	225,276	229,109	135,657	65,091	65,515
Total Services	451,293	513,913	229,978	229,397	141,971