Real terms increase for local government

Local authorities will receive total funding from the Scottish Government of £11.3 billion in 2020-21.

The settlement provides councils with an increase in day to day revenue spending of £494 million, fully funds all Scottish Government commitments and provides an additional £100 million for social care, including a contribution of £25 million to ensure all care staff are paid the living wage.

Local authorities will again have the flexibility to increase council tax levels by up to three per cent in real terms, providing up to an additional £135 million to help deliver essential local services.

Cabinet Secretary for Local Government Aileen Campbell said:

“This budget provides a fair settlement for our partners in local government and supports vital public services across Scotland.

“Taken together with the flexibility to increase council tax, this local government settlement gives councils an increase of revenue spending of up to 4.3% in real terms to deliver local services.

“The settlement will deliver on our joint key commitment to expand the funded hours of early learning and childcare this year, funds a fair pay deal for our teachers, and invests more than £120 million targeted at closing the attainment gap through the Pupil Equity Fund.

“This increased settlement will ensure fair, sustainable funding for local authorities.”

Background

Scotland’s discretionary resource budget has reduced in real terms between 2010-11 and 2020-21 by £840 million (2.8%).