The Funding of Local Government in Scotland, 2025-2026

What information was used to calculate the allocations?

Each service area had a different funding formula. So, for example 

• The formula for street lighting distributed £60 million. It was shared out in proportion to the total length of roads in urban areas within each council. 
• The formula for Planning & Economic Development distributed £98 million. It was shared out partly in proportion to population, and partly in proportion to deprivation levels, with an extra allocation for island populations.

Just under half of the funding is distributed based on population or pupil numbers.

The formulae used the latest data and often took account of deprivation or rurality. Island populations were usually also given a 14 per cent uplift because of their additional costs.

Sometimes councils were given a fixed amount each as part of the formula. In a few cases funding was decided based on bids for funding. 

Summary of the 133 different indicators used in the funding formula