Funding of more than £13.2 billion for councils

Details of how more than £13.2 billion in Scottish Government funding for 2023-24 will be distributed among local authorities have been published. 

They include a cash increase in day-to-day revenue funding of 3.5% for next year, compared with the 2022-23 Scottish Budget.

The settlement represents a total cash increase of £570 million or 4.5%. This is equivalent to a real terms rise of 1.3% to support vital council services and follows the most challenging Scottish Budget settlement since devolution.

The Scottish Government has enabled local authorities to make their own local decisions, with financial flexibility on council tax, employability and homelessness services, as well as early learning and schools workforce provision.

Deputy First Minister John Swinney said:

“I recognise the challenge which local councils face in delivering services during the current bleak economic climate.

“The 2023-24 Budget confirms that, despite the most turbulent economic and financial context that most people can remember, and the huge pressure on public finances, we are providing councils with a real terms budget increase of 1.3% next year.

“Local government had sought even more funding but – candidly – there was no way in the current climate we were going to be able to meet the request in full. The entire country is having to make difficult choices, including government and local authorities, but we have managed to find an extra £570 million for councils on top of last year’s budget allocations.  

“We are building flexibility and autonomy into how budgets can be spent, but a more fundamental shift is required. We will work with local authorities to review how public services are delivered, so that they are designed around the needs and interests of the people and communities of Scotland.

“That means tackling problems through early intervention before they become acute. It means creating a more effective way of working together with local government by focusing on outcomes, not process.”

Background

This publication starts the formal consultation period on the 2023-24 local government settlement. Final allocations will be published following approval by the Scottish Parliament, expected in February.

The Scottish Budget 2023-24 proposal includes a net increase of £16 million for free school meals.

The Scottish Government is transferring £105 million per year to give effect to the devolution of Non-Domestic Rates Empty Property Relief. This is significantly more than the cost of replicating the existing policy, should councils wish to do so.

Full details of the provisional allocations, including capital allocations, were published today.