Funding of £12.5 billion for local councils

Details have been published of how the £12.5 billion in Scottish Government funding for 2022/23 will be distributed to local authorities. 

The settlement represents a total cash increase of £917.9 million or 7.9%, which is the equivalent of a real terms rise of 5.1% to support vital local government services.

It includes a real terms increase in day-to-day revenue funding of 4.9%, compared with the 2021/22 draft budget.

In addition, The Scottish Government has responded to requests by councils for more financial flexibility by enabling them to make their own local decisions on council tax.

Finance Secretary Kate Forbes said:

“The 2022/23 Budget confirms that, even in the face of the economic uncertainty caused by the pandemic, we are providing councils with a real terms increase to their budgets for the coming year of more than 5%.

“Local authorities are key partners with government as we tackle the pandemic and protect our communities, businesses and public services. As we move forward, they will play an important leadership role in creating a greener, fairer and more prosperous Scotland.

“This settlement reflects that and includes protection to the core budget in cash terms, an extra £554 million for health and social care, £145 million for additional teachers and support staff and £94 million to support the expansion of free school meals.

“I have been clear that this Budget has required difficult choices. But I am determined that councils should be fairly funded within the limited resources we have available.”

Background

LOCAL GOVERNMENT FINANCE 2022-23: TOTAL REVENUE SUPPORT

This publication starts the formal consultation period on the 2022/23 local government settlement. The final allocations will be published following approval by the Scottish Parliament.

Full details of the provisional allocations, including capital allocations, were published today in the Local Government Finance Circular 9/21