Budget: Local Government funding settlement

Public services protected despite cuts to Scotland’s block grant.

Local authorities will receive more than £10.5 billion in 2018-19, Finance Secretary Derek Mackay has announced, as he unveiled a range of measures to protect public services and generate economic growth. 

Mr Mackay said despite a cut of over £200 million to Scotland’s block grant by the UK Government, the 2018-19 Draft Budget delivers a fair funding settlement for local authorities.

Finance Secretary Derek Mackay said:

“The Scottish Government has continued to ensure that our partners in local government receive a fair funding settlement despite further cuts to the Scottish Budget from the UK Government.

“We have protected day-to-day local government spending, while increasing the capital budget. Local authorities will receive more than £10.5 billion through the local government finance settlement in 2018-19.

“We are using our tax varying powers to boost investment in public services, and if local authorities choose to use their powers to increase Council Tax, by up to 3 per cent, they will have an overall real-terms increase in the funds at their disposal, to support local services.”

Background

2018-19 Local Government funding allocations and potential council tax increases. 

£million

Revenue

Capital

Total

 

Potential Income from 3% Council Tax Increase

 

Local Government Core Settlement plus Potential Extra Council tax Income

 

£m

£m

£m

 

£m

 

£m

Aberdeen City

      319.002

     23.990

342.992

 

3.566

 

346.558

Aberdeenshire

      403.276

     37.492

440.768

 

4.055

 

444.823

Angus

      194.688

     12.760

207.448

 

1.510

 

208.958

Argyll & Bute

      187.451

     13.057

200.508

 

1.510

 

202.018

Clackmannanshire

       92.288

      5.495

97.783

 

0.719

 

98.501

Dumfries & Galloway

      276.266

     21.871

298.137

 

2.022

 

300.159

Dundee City

      285.459

     20.360

305.819

 

1.867

 

307.685

East Ayrshire

      219.455

     12.855

232.310

 

1.626

 

233.935

East Dunbartonshire

      178.335

      9.713

188.048

 

1.849

 

189.897

East Lothian

      165.104

     12.199

177.303

 

1.582

 

178.884

East Renfrewshire

      171.700

      7.294

178.994

 

1.550

 

180.544

Edinburgh, City of

      696.574

     78.046

774.620

 

8.191

 

782.810

Eilean Siar

       93.609

      8.106

101.715

 

0.319

 

102.033

Falkirk

      269.510

     14.776

284.286

 

2.028

 

286.314

Fife

      615.603

     34.665

650.268

 

4.992

 

655.259

Glasgow City

   1,209.707

   136.101

1,345.808

 

8.365

 

1,354.173

Highland

      430.946

     41.305

472.251

 

3.638

 

475.889

Inverclyde

      159.870

      8.390

168.260

 

1.052

 

169.312

Midlothian

      152.678

      9.898

162.576

 

1.362

 

163.937

Moray

      153.621

     10.964

164.585

 

1.240

 

165.824

North Ayrshire

      265.993

      1.894

267.887

 

1.863

 

269.750

North Lanarkshire

      594.032

     32.621

626.653

 

3.981

 

630.633

Orkney Islands

       67.615

      6.419

74.034

 

0.268

 

74.301

Perth & Kinross

      239.094

     17.036

256.130

 

2.394

 

258.523

Renfrewshire

      299.095

     16.333

315.428

 

2.517

 

317.944

Scottish Borders

      199.095

     26.291

225.386

 

1.677

 

227.062

Shetland Islands

       79.034

      6.643

85.677

 

0.280

 

85.956

South Ayrshire

      193.576

     11.217

204.793

 

1.788

 

206.580

South Lanarkshire

      539.756

     28.940

568.696

 

4.217

 

572.913

Stirling

      162.116

     10.729

172.845

 

1.451

 

174.296

West Dunbartonshire

      181.309

     14.600

195.909

 

1.226

 

197.134

West Lothian

      304.660

     15.271

319.931

 

2.241

 

322.171

Still to be distributed

      230.269

   169.033

399.302

 

0.000

 

399.302

Scotland

   9,630.770

   876.364

10,507.134

 

    76.945

 

10,584.079

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