Scottish Local Government Finance Statistics 2023-24

2. Revenue Expenditure and Income

Revenue expenditure is the cost of delivering services each year and includes both service operating costs and overheads. These costs might include salaries, rent, building maintenance, supplies and services. The benefits from revenue expenditure are mainly received within the financial year. Revenue expenditure also includes costs that cannot be directly attributed to a service, such as the repayment of debt and where a local authority has used revenue resources to fund capital investment.

All local authorities are required to have a General Fund which is used to account for all revenue activity, except that relating to local authority housing. The General Fund is the principle revenue reserve of the local authority.

Where a council has housing stock, it is required to record expenditure and income relating to the direct provision of housing in their Housing Revenue Account (HRA). HRAs are generally self-financing, that is the income received is sufficient to cover expenditure incurred. Of the 32 councils, 26 have an HRA.

The Orkney County Council Act 1974 and the Zetland County Council Act 1974 require Orkney and Shetland to also hold a Harbour Account, a separate account and reserve fund specifically for harbour undertakings. Orkney and Shetland are also able to transfer money between their General Fund and their Harbour Accounts. For the purposes of this publication, expenditure and income relating to Harbour Accounts is included in General Fund figures unless otherwise stated.

Revenue expenditure is principally funded through service income and general funding – further detail on these sources of funding is provided in Chapters 2.1.4 and 2.3 respectively. Any deficit (+) in a local authority’s revenue account is met from their reserves, and any surplus (-) is added to a local authority’s reserves and carried forward to the next year. Chapter 2.4 provides more detail on the movement in General Fund and HRA reserves in 2023-24.

2.1 Expenditure and Income on Services

Net Revenue Expenditure, also known as the net cost of services, is the element of service expenditure that is funded by general funding or reserves. It is calculated as gross service expenditure minus gross service income. As shown in Table 2.1, the net revenue expenditure on local authority services, including HRA, was £14,296 million in 2023-24. This is an increase in net revenue expenditure of £1,345 million, or 10.4 per cent, on 2022-23.

The increase in net revenue expenditure figure partly reflects the impact of high inflation on the cost to local authorities of providing services. For context, the GDP deflator, which can be viewed as a measure of general inflation in the domestic economy, was 6.12 per cent higher in 2023-24 when compared to 2022-23[1].

Table 2.1: Net Revenue Expenditure on Services in 2023-24, £ millions

Category	General Fund	HRA	Total
Gross Service Expenditure	24,235	990	25,225
Gross Service Income	9,482	1,447	10,929
Net Revenue Expenditure	14,753	-457	14,296

Source: LFR 00

2.1.1 Net Revenue Expenditure by Service

Chart 2.1 shows net revenue expenditure on services in Scotland in 2023-24. Education has the highest net revenue expenditure at £6,960 million followed by Social Work which has a net revenue expenditure of £4,604 million.

Chart 2.1: Net Revenue Expenditure in 2023-24 by Service, £ millions

Source: LFR 00

Table 2.2 shows how net revenue expenditure by service has changed between 2019-20 and 2023-24.

Table 2.2: Net Revenue Expenditure from 2019-20 to 2023-24 by Service, £ millions

Service	2019-20	2021-22	2022-23	2023-24	% change between 2022-23 & 2023-24
Education	5,524	5,867	6,472	6,960	7.5%
Culture & Related Services	582	592	651	675	3.7%
Social Work	3,540	3,818	4,291	4,604	7.3%
Roads & Transport	458	404	437	454	4.1%
Environmental Services	726	719	754	811	7.5%
Building, Planning & Development	219	250	246	258	4.5%
Central Services	387	363	341	693	103.2%
Non-HRA Housing	272	291	322	339	5.3%
Trading Services	-29	-29	-25	-41	64.0%
General Fund Net Revenue Expenditure	11,679	12,277	13,489	14,753	9.4%
Housing Revenue Account (HRA)	-571	-527	-538	-457	-15.0%
Total Net Revenue Expenditure	11,108	11,750	12,951	14,296	10.4%

Source: LFR 00

Net revenue expenditure on Education has increased by 7.5 per cent, or £488 million, in 2023-24. This is driven by increases in net expenditure for Pre-Primary, Primary and Secondary Schools, which have increased by 13.6 per cent, 5.3 per cent and 7.6 per cent, or £65 million, £135 million and £190 million, respectively. Net revenue expenditure on special education increased by £102 million (13.2 per cent). Net revenue expenditure on Community Learning relatively remained unchanged (down £0.5 million, -0.4%).

Culture and Related Services saw an increase of 3.7 per cent, or £24 million, in net revenue expenditure in 2023-24. The main underlying changes were an increase in net expenditure of £7 million (12.9 per cent) on Other Recreation and Sport, £6 million (5.7 per cent) on Library Services and £6 million (12.7 per cent) on Museums & Galleries.

Net revenue expenditure on Social Work increased by 7.3 per cent, or £314 million, in 2023-24. Much of this increase is accounted for by Integrated Joint Boards (IJBs). Councils’ collectively transferred £189 million more funds to IJBs in 2023-24, compared to 2022-23. This resulted in an increase in net revenue for IJBs of £189 million.

Net revenue expenditure on Roads & Transport has increased by 4.1 per cent, or £18 million, in 2023-24. Net revenue expenditure on parking services decreased by £8 million (20.8 per cent) as a result of increased parking income. Net revenue expenditure on Roads: Lighting increased by £22 million (37.5 per cent). Roads: Other Maintenance increased by £10 million (6.1 per cent).

Environmental Services saw an increase of 7.5 per cent, or £57 million, in net revenue expenditure in 2023-24. Of this increase, £53 million related to Waste Management.

Building, Planning & Development saw an increase of 4.5 per cent, or £11 million, in net revenue expenditure in 2023-24, compared to 2022-23. Most of this increase is accounted for by Building Standards, which increased by £10 million.

Net revenue expenditure on Central Services increased by 103.2 per cent, or £352 million, between 2022-23 and 2023-24. Of this increase, £260 million is due to Equal Pay payments that were made by Glasgow City Council during 2023-24.

Net revenue expenditure on Non-HRA Housing has increased by 5.3 per cent, or £17 million, in 2023-24.

HRA and Trading Services both have negative net revenue expenditure, which means that the service income received for these services was more than the expenditure incurred to provide these services. As such, negative net revenue expenditure can be considered as net income. For 2023-24, net expenditure for Trading Services decreased by 64 per cent to negative £41 million (it was negative £25 million in 2022-23). Net expenditure for HRA has been decreasing – that is, the overall net income that local authorities have received from their HRA has increased.

2.1.2 General Fund Net Revenue Expenditure by Council

Chart 2.2: General Fund Net Revenue Expenditure in 2023-24 by Council, £ per person

Source: LFR 00, Scotland’s National Records of Scotland Mid-2023 population estimates

2.1.3 Gross Service Expenditure

Gross Service Expenditure is the total expenditure on local authority services within a financial year, adjusted for any intra / inter-authority transfers. In 2023-24, gross service expenditure was £25,225 million, an increase of 7.8 per cent, or £1,834 million, from 2022-23. Table 2.3 shows gross service expenditure by type of expenditure from 2019-20 to 2023-24.

Table 2.3: Gross Service Expenditure from 2019-20 to 2023-24 by Expenditure Type, £ millions

Expenditure Type	2019-20	2020-21	2021-22	2022-23	2023-24	% change between 2022-23 & 2023-24
Employee Costs	8,259	8,191	8,611	9,306	10,341	11.1%
Operating Costs	7,562	8,066	8,400	9,046	9,699	7.2%
Transfer Payments	4,771	4,724	5,026	5,432	5,599	3.1%
Support Services	728	743	785	832	898	8.0%
Adjustment for Intra / Inter Authority Transfers	-1,227	-1,253	-1,223	-1,224	-1,313	7.3%
Gross Service Expenditure	20,094	20,471	21,599	23,391	25,225	7.8%

Source: LFR 00

In 2023-24, employee costs were the largest element of gross service expenditure, accounting for £10,341 million. These costs relate to salaries and wages, national insurance and superannuation contributions, cash allowances paid to employees, redundancy and severance payments and any other costs relating to employees. Employee costs in 2023-24 have increased by 11.1 per cent, or £1,036 million, from 2022-23. Employee costs have increased by 25.2 per cent, or £2,082 million, over the last five years.

Operating costs relate to costs for premises, transport, supplies and services, as well as payments made to third parties. In 2023-24, these accounted for £9,699 million of gross expenditure – an increase of 7.2 per cent, or £653 million, from 2022-23. This increase predominantly relates to an increase in payments to third parties.

Transfer payments accounted for £5,599 million of gross service expenditure in 2023-24, an increase of 3.1 per cent, or £167 million, from 2022-23. This expenditure relates to payments for which no goods or services are received in return by the local authority, including payment of Housing Benefit and transfers to IJBs.

Support services costs are the smallest component of gross service expenditure, accounting for £898 million. This is an increase of 8.0 per cent, or £67 million, from 2022-23. These are costs that are paid for services that support the provision of services to the public, such as IT, Human Resources, Legal services, Procurement services, and Corporate services.

An adjustment for intra / inter-authority transfers of -£1,313 million has been made to the aggregate gross service expenditure figure. This is to prevent double counting of expenditure caused by transfers between different services within an authority and between different local authorities. The adjustment removes the total recharge income from other services, contributions from other local authorities and requisition income for VJBs and RTPs. Following the adjustment, expenditure is only reported against the authority or service area that commissioned the service.

Chart 2.3 shows the breakdown of gross service expenditure by service and by expenditure type. Education has a higher proportion of employee costs than other services – this is due to the higher number of staff employed within Education, in particular teachers. Social Work and Non-HRA Housing have high proportions of transfer payments which relates to amounts transferred to IJBs and the payment of Housing Benefits respectively. Other has the largest adjustment for intra / inter authority transfers which is due to Central Services and Trading Services having particularly high amounts of recharge income from other services.

Chart 2.3: Gross Service Expenditure in 2023-24 by Service and Expenditure Type, £ millions

Please note that ‘Other’ consists of Building, Planning & Development Services, Central Services and Trading Services.

Source: LFR 00

2.1.4 Gross Service Income

Gross Service Income is the total income a local authority receives directly in relation to services they provide. In 2023-24, local authorities received £10,929 million in service income, an increase of 4.7 per cent, or £489 million, from 2022-23.

Local authorities receive service income from a variety of sources. Table 2.4 shows gross service income by type of income from 2019-20 to 2023-24.

Table 2.4: Gross Service Income from 2019-20 to 2023-24 by Income Type, £ millions

Income Type	2019-20	2020-21	2021-22	2022-23	2023-24	% change between 2022-23 & 2023-24
Government Grants	2,559	2,866	2,884	2,857	2,795	-2.2%
Other Grants, Reimbursements and Contributions	3,772	4,003	4,249	4,676	4,950	5.8%
Customer and Client Receipts	2,685	2,494	2,715	2,907	3,184	9.5%
Gross Service Income	9,016	9,363	9,849	10,440	10,929	4.7%

Source: LFR 00

Government grants relates to grants local authorities receive to support specific services from either the Scottish or UK Governments, including Ring-Fenced Revenue Grants (RFRGs) and grants from the Department for Work & Pensions (DWP) for Housing Benefit payments. These figures will reflect the amount of grants used in the year specified – this may not match the amount of grants local authorities received in that year. This category does not include General Revenue Grant (GRG) as that is not provided to local authorities to fund a specific service. In 2023-24, government grants accounted for £2,795 million of service income, a decrease of 2.2 per cent, or £62 million, from 2022-23.

Other grants, reimbursements and contributions includes contributions from NHS Boards and income from IJBs to commission social care services. This accounted for £4,950 million of service income in 2023-24 – an increase of 5.8 per cent, or £273 million, from 2022-23.

Customer and client receipts is income local authorities have received for sales, rents, fees and charges for services they provide. In 2023-24, this accounted for £3,184 million of service income, an increase of 9.5 per cent, or £277 million, from 2022-23.

Chart 2.4 shows the breakdown of gross service income by service and income type. Social Work has the largest amount of service income, the majority of which is from other grants, reimbursements and contributions. This relates to amounts received from IJBs to commission social care services, as well as contributions received from NHS Boards.

Both Non-HRA Housing and Education have high proportions of service income from government grants. For Non-HRA Housing, this relates to grants from the DWP to fund Housing Benefit payments. For Education, this amount reflects various Education RFRGs that local authorities received from Scottish Government.

Service income for the HRA is almost entirely made up of customer and client receipts which predominantly relates to rent payments received.

Chart 2.4: Gross Service Income in 2023-24 by Service and Income Type, £ millions

Please note that ‘Other’ consists of Building, Planning & Development Services, Central Services and Trading Services.

Source: LFR 00

In 2023-24, 41 per cent of service expenditure was met by service income. Chart 2.5 shows the proportion of service expenditure met by service income for each service. This varies significantly between services as they each receive different levels of grants and contributions, and services have differing abilities to generate service income in the form of customer and client receipts.

Service income exceeded service expenditure for HRA and Trading Services, generating surplus income for both services.

Service income was less than service expenditure for all other services, with the amount of service expenditure being funded by service income ranging from 12 per cent for Education Services to 84 per cent for Non-HRA Housing.

Chart 2.5: Service Expenditure met by Service Income in 2023-24 by Service, £ millions

Source: LFR 00

2.2 Other Expenditure and Income

Local authorities will also incur some revenue expenditure and income that is not attributable to specific services, such as interest paid or received, statutory repayment of debts, contributions to capital expenditure, proceeds of trading operations and any other operating expenditure.

In 2023-24, local authorities incurred £945 million of other expenditure and income. Table 2.5 provides a breakdown of this figure, split by the General Fund and HRA. Total interest paid was £1,049 million in 2023-24.

Table 2.5: Other Expenditure and Income in 2023-24, £ millions

Expenditure / Income Type	General Fund	HRA	Total
Interest Payable and Similar Charges	853	196	1,049
Interest Receivable and Similar Income	-244	-15	-259
Statutory Repayment of Debt	-209	142	-67
Capital Expenditure Funded from Revenue	88	135	223
Surplus (-) or Deficit (+) from Trading Operations	-1	0	-1
Other Operating Expenditure	-1	0	0
Total Other Expenditure and Income	485	459	945

Please note the following:

Income figures are presented as negative in this table.

‘Interest Receivable and Similar Income’ includes losses arising from derecognition of financial assets and recognition of credit losses on financial assets.

‘Statutory Repayment of Debt’ includes repayments relating to lending to other statutory bodies and so will differ to the repayment figures in Chapter 5.

Source: LFR A0

 

2.3 General Funding

General funding, referred to as ‘Taxation and Non-Specific Grant Income’ within local authorities’ accounts, principally consists of the General Revenue Grant (GRG) and local taxation, specifically Non-Domestic Rates (NDR) and Council Tax.

Total general funding available to authorities in 2023-24 was £14,933 million, an increase of 5.3 per cent, or £751 million, from 2022-23. Chart 2.6 shows the total general funding available to local authorities in 2023-24 by type of funding.

Chart 2.6: General Funding in 2023-24 by Source, £ millions

Please note that ‘Other Funding’ includes government grants paid to joint boards and income received through NDR TIF and BRIS schemes (Chapter 2.3.5).

Source: LFR A0

General Revenue Grant (GRG) is the general grant paid to local authorities by the Scottish Government, including monies from the UK Government payable to a local authority, and is the main source of funding for local authorities. In 2023-24, GRG accounted for £8,920 million, or 60 per cent, of general funding. See Annex C for how this figure is derived.

NDR accounted for £3,045 million[2], or 20 per cent, of general funding. The Scottish Government guarantees the combined sum of GRG and NDR funding to local authorities in each financial year. More detail on NDR is provided in Chapter 2.3.2 and more information on the process to determine local government funding from the Scottish Government is available in the Local Government Funding: Process Overview publications.

Council Tax accounted for £2,931 million, or 20 per cent, of general funding in 2023-24 – this is consistent with prior years. More information on Council Tax is provided in Chapter 2.3.1.

Other funding has increased from £30 million in 2022-23 to £87 million in 2023-24. Much of this has come from capital to revenue transfers permitted under statute. For example:

• Capital to revenue transfers under finance circulars 12/2022 and 6/2023 permit flexibilities of up to £120.6 million (in 2022-23 and 2023-24) and £92 million (in 2023-24) respectively, to fund the local government pay deals in 2022-23 and 2023-24.
• Capital Fund transfers to the General Fund to meet the principal element of loans fund repayments (finance circular 7/2016)

Table 2.6 shows the breakdown of general funding figures between 2019-20 and 2023-24. As the combined total of NDR and GRG provided to local authorities is guaranteed, any decrease in the amount of NDR collected is compensated for by a corresponding increase in GRG.

Council Tax has continued the steady increase seen over the last five years, with an increase of 6.0 per cent, or £166 million, from 2022-23.

Table 2.6: General Funding from 2019-20 to 2023-24 by Source, £ millions

General Funding Source	2019-20	2020-21	2021-22	2022-23	2023-24	% change between 2022-23 & 2023-24
GRG	6,937	9,308	9,014	8,673	8,920	2.9%
NDR Distributable Amount	2,853	1,868	2,090	2,765	3,045	10.1%
Council Tax	2,493	2,581	2,640	2,765	2,931	6.0%
Other Funding	40	77	44	30	87	195.5%
Total General Funding	12,323	13,834	13,788	14,233	14,983	5.3%

Please note the following:

GRG figures for 2019-20 and 2020-21 differ from the Finance Circular allocation due to £10m for Teacher’s Pay which was paid as part of the 2020-21 settlement but recorded by local authorities as income in 2019-20.

The 2023-24 GRG figure differs to the Finance Circular allocation. Please see Annex C for details.

‘Other Funding’ includes government grants paid to joint boards, income received through NDR TIF and BRIS schemes plus capital to revenue transfers.

Source: LFR A0

2.3.1 Council Tax

Council Tax was introduced in Scotland on the 1 April 1993 to replace the Community Charge. It is a tax system based on dwellings and is a component of general funding for local authorities.

There are three factors that determine the amount of Council Tax that a dwelling is liable for:

1. The market value of the dwelling as at the 1 April 1991. Each dwelling is placed into one of eight bands from A to H, with Band A dwellings liable for the lowest rates of Council Tax and Band H attracting the highest.
2. The Band D rate which is set by the local authority, with other bands calculated as a ratio to Band D. The ratios determining the charges for properties in bands E to H were revised in 2018-19.
3. A range of discounts, exemptions, reductions and increases that are available in certain circumstances, or in some cases an increase in Council Tax due to the application of a levy.

The valuation range and ratio for each Council Tax band is given in Table 2.7.

Table 2.7: Valuation Range and Ratios by Council Tax Band

Band	Valuation Band Ranges as at 1 April 1991	Ratio to Band D	No. of Chargeable Dwellings as at September 2023	Proportion of Chargeable dwellings
Band A	Under £27,000	6/9	497,080	19.3%
Band B	£27,001 to £35,000	7/9	579,303	22.4%
Band C	£35,001 to £45,000	8/9	419,799	16.3%
Band D	£45,001 to £58,000	9/9	360,254	14.0%
Band E	£58,001 to £80,000	473/360	358,243	13.9%
Band F	£80,001 to £106,000	585/360	214,726	8.3%
Band G	£106,001 to £212,000	705/360	138,126	5.4%
Band H	Over £212,000	882/360	14,197	0.5%
Total			2,581,728	100.0%

Please note the following:

“n/a” indicates where a total value is not applicable.

The ratios quoted applied from 2017-18 onwards.

Source: CTaxbase

2.3.1.1 Collection and Yield of Council Tax

Local authorities are responsible for billing and collecting Council Tax. Before the start of each financial year, local authorities issue Council Tax bills to householders in each dwelling. Each bill is calculated by applying the appropriate band rate for the local authority, then applying any discounts, exemptions, reductions or increases – further details are provided in Tables 2.12 and 2.13.

Council Tax Potential Yield refers to the Council Tax yield if all dwellings paid the full rate for their relevant Band and local authority. Chart 2.7 illustrates the gross Council Tax potential yield broken down into the Council Tax billed and the amounts not billed due to discounts and exemptions, or where the Council Tax Reduction (CTR) scheme has reduced a household’s Council Tax liability.

Chart 2.7: Council Tax Potential Yield in 2023-24, £ millions

Source: CTaxbase and CTRR

Table 2.8: Council Tax. Income after CTR in 2023-24 by Local Authority, £ thousands

Local Authority	Net Council Tax Income
Aberdeen City	141,475
Aberdeenshire	168,980
Angus	57,833
Argyll & Bute	61,909
City of Edinburgh	322,785
Clackmannanshire	26,214
Dumfries & Galloway	77,106
Dundee City	64,124
East Ayrshire	58,900
East Dunbartonshire	72,524
East Lothian	68,781
East Renfrewshire	62,824
Falkirk	78,331
Fife	189,591
Glasgow City	274,105
Highland	144,159
Inverclyde	35,334
Midlothian	57,306
Moray	51,538
Na h-Eileanan Siar	13,363
North Ayrshire	65,517
North Lanarkshire	138,529
Orkney Islands	11,834
Perth & Kinross	97,348
Renfrewshire	95,528
Scottish Borders	67,308
Shetland Islands	10,914
South Ayrshire	66,829
South Lanarkshire	159,053
Stirling	59,579
West Dunbartonshire	40,798
West Lothian	90,534
Scotland	2,930,953

Please note that figures relate to income collected in 2023-24, which can include amounts that were billed in previous years.

Source: LFR A0

2.3.1.2 Chargeable Dwellings

Table 2.9 shows the number of dwellings in Scotland for each September from 2019-20 to 2023-24. There were a total of 2.721 million dwellings in Scotland in 2023-24, of which 139,192 were exempt for Council Tax purposes. This gave 2.582 million chargeable dwellings in 2023-24, an increase of around 3 per cent, or around 76,795 dwellings, since 2019-20.

Table 2.9: Total Number of Dwellings from 2019-20 to 2023-24

Financial Year	Total Dwellings	Exempt Dwellings	Chargeable Dwellings
2019-20	2,636,639	131,706	2,504,933
2020-21	2,653,732	130,845	2,522,887
2021-22	2,674,729	134,096	2,540,633
2022-23	2,699,040	136,683	2,562,357
2023-24	2,720,920	139,192	2,581,728

Source: CTaxbase

Chart 2.8: Proportion of Chargeable Dwellings at September 2023 by Local Authority and Council Tax Band

Source: CTaxbase

2.3.1.3 Council Tax Rates and Average Bills

Each local authority determines their own Band D rate of Council Tax as part of their budget setting process. The rate for other bands is then calculated as a set ratio of the Band D rate, see Table 2.7, and so each local authority has different Council Tax rates. The 2023-24 Band D Council Tax rates for each local authority are shown in Chart 2.9 ranging from £1,261 in Shetland to £1,515 in Midlothian. The Scotland Average Band D Council Tax Rate was £1,417, compared to £1,347 in 2022-23. This is an increase of 5.2 per cent or £70.

Chart 2.9: Band D Council Tax Rate in 2023-24 by Local Authority

Source: CTAS

From 2007-08 to 2016-17, the Scottish Government and local government worked in partnership to freeze Council Tax rates each year. The one exception is Stirling, who reduced their Band D rate from £1,223 in 2007-08 to £1,209 in 2008-09, and subsequently to £1,197 in 2012-13. The Council Tax freeze caused the Scotland average Band D Council Tax rate to remain steady at £1,149 from 2007-08 to 2016-17 – a fall in real terms.

After nine years of the Council Tax freeze, the Scottish Government secured the agreement of local authorities to cap locally determined Council Tax increases to three per cent in cash terms in both 2017-18 and 2018-19. This continued into 2019-20 and 2021-22, when local government agreed Council Tax increases to be capped at three per cent in real terms, which was 4.79 per cent in cash terms in 2019-20 and 4.84 per cent in 2020-21. All 32 local authorities froze their Council Tax rates for 2021-22[3].

For 2022-23, the overall increase was 2.98 per cent in cash terms, based on the Scotland Average Band D Council Tax Rate and there was a 5.2 per cent increase between 2022-23 and 2023-24.

The average Council Tax bill per dwelling in 2023-24 was £1,302. This differs from the average Band D rate due to the distribution of dwellings across Council Tax bands, as can be seen in Table 2.7 and Chart 2.7, and the application of discounts.

Table 2.10 shows how the average Council Tax bill for Scotland has changed each year from 2019-20[4].

Table 2.10: Average Council Tax Bill per Dwelling from 2019-20 to 2023-24

Financial Year	Before CTR	After CTR
2019-20	£1,147	£1,013
2020-21	£1,201	£1,053
2021-22	£1,198	£1,057
2022-23	£1,238	£1,096
2023-24	£1,302	£1,152

Please note that the minor changes between years where Council Tax was frozen are due to a number of factors, including the distribution of dwellings across bands; discounts and exemptions; new construction and removal of demolished housing from the roll.

Source: CTAS, CTaxbase and LFR 12

2.3.1.4 Council Tax Reduction (CTR)

Table 2.11: CTR Funding and Reduction in Liability in 2023-24 by Local Authority, £ thousands

Local Authority	CTR Funding from SG	Final total reduction in liability
Aberdeen City	10,808	12,326
Aberdeenshire	9,053	9,588
Angus	5,408	6,043
Argyll & Bute	5,434	5,955
City of Edinburgh	25,725	27,420
Clackmannanshire	3,716	4,180
Dumfries & Galloway	9,272	10,606
Dundee City	12,781	13,666
East Ayrshire	9,532	10,325
East Dunbartonshire	4,956	5,291
East Lothian	5,458	6,148
East Renfrewshire	4,082	4,414
Falkirk	8,520	9,897
Fife	21,330	23,696
Glasgow City	71,332	77,220
Highland	12,747	13,789
Inverclyde	6,527	7,262
Midlothian	5,002	5,671
Moray	3,909	4,317
Na h-Eileanan Siar	1,276	1,382
North Ayrshire	12,402	14,082
North Lanarkshire	23,427	25,915
Orkney Islands	918	997
Perth & Kinross	6,788	7,431
Renfrewshire	12,760	13,865
Scottish Borders	5,456	5,680
Shetland Islands	734	758
South Ayrshire	8,251	9,097
South Lanarkshire	20,908	23,413
Stirling	4,289	4,993
West Dunbartonshire	8,112	9,084
West Lothian	10,088	11,698
Scotland	351,000	386,209

Source: CTR Extracts and LFR 12

2.3.1.5 Changes to Council Tax Liabilities

Not all dwellings are liable to pay the full rate of Council Tax. Discounts, exemptions and increased rates can be charged for certain types of dwellings, and the CTR scheme is available to support lower income households in meeting their Council Tax liabilities.

Table 2.12 summarises the range of discounts, exemptions and reductions available and the change in liability that applies to each type. Please note that, in some cases, more than one type of discount, exemption or reduction may apply. The examples given in Table 2.12 are typical but not exhaustive. A full explanation of Council Tax discounts and exemptions is available on the Scottish Government website.

Table 2.12: Council Tax Discounts, Exemptions, Reductions and Increases

Please note that in 2013-14, local authorities gained the discretionary power to remove the discount for Second Homes / Long Term Empty, or set a Council Tax increase of 100% on ‘Long Term Empty – More than 12 months’ properties.

 

Table 2.13: Number of Dwellings in Receipt of Council Tax Discounts and Reductions at September from 2019-20 to 2023-24

Type of Support	2019-20	2020-21	2021-22	2022-23	2023-24
Disability reduction	14,048	14,009	13,988	14,096	14,686
Single Person Discount	988,720	1,004,557	1,025,094	1,037,962	1,048,186
Second Homes	24,314	24,466	23,890	24,287	24,061
Empty Properties	40,963	47,333	43,766	44,601	46,217
Occupied entirely by disregarded adults	1,517	1,500	1,460	1,434	1,462
Dwellings not subject to discount	1,449,419	1,445,031	1,446,423	1,454,073	1,461,802
Council Tax Reduction recipients	471,790	500,620	482,060	462,200	460,750
All chargeable dwellings	2,504,933	2,522,887	2,540,633	2,562,357	2,581,728

Please note the following:

Some dwellings may be eligible for more than one type of support, in these cases, the dwelling will be counted under each type of support it is eligible for.

It is not possible for some local authorities to separately identify Second Homes and Long Term Empty dwellings. For these authorities, the total number of Second Homes and Long Term Empty dwellings has been recorded under Second Homes.

Source: CTaxbase and CTR Extract

2.3.2 Non-Domestic Rates (NDR)

Non-Domestic Rates (NDR) are a property tax for which the occupier of a non-domestic property is generally statutorily liable. A non-domestic property is an individual property used for non-domestic purposes, such as business premises and third and public sector properties.

The principles of NDR were established in the Lands Valuation (Scotland) Act 1854. This Act also provided for the appointment of the Scottish Assessors, who are responsible for determining the classification and valuation of non-domestic and domestic properties and are independent of both the Scottish Government and local authorities.

Non-domestic rates generated £3,033 million of net income in 2023-24, as shown in Table 2.14. This is the total contributable amount of NDR income (NDRI). The contributable amount is equivalent to the gross amount paid by ratepayers, net of any reliefs which are funded by the Scottish Government. However, the contributable amount is not net of any reliefs funded by local authorities themselves, and so it differs from the amount collected from ratepayers (the collectable amount).

Each local authority reports their Provisional Contributable Amount (PCA) to the Scottish Government at the start of the year. This is included in the annual NDR account and published as part of the Scottish Government’s overall annual accounts. The amount to be distributed to each authority as part of the annual local government finance settlement is known as the distributable amount and is set by the Scottish Government before the start of the financial year. In 2023-24, the distributable amount was set at £3,047million – see Chart 2.6 and Table 2.14.

Table 2.14: NDR Contributable and Distributable Amounts from 2019-20 to 2023-24, £ millions

NDR Type	2019-20	2020-21	2021-22	2022-23	2023-24
NDR contributable Amount	2,753	1,816	2,108	2,792	3,033
NDR distributable Amount	2,853	1,868	2,090	2,766	3,047

Please note that the NDR Contributable Amounts reflect the final, audited income figures collected by local authorities, except for 2022-23 and 2023-24, which are the Notified (provisional outturn) figures as the audits are not yet finalised for all councils. They are net of reliefs paid by Scottish Government, but gross of all local reliefs and top-ups to discretionary amounts paid by councils themselves.

Source: NDRI Audited Returns, Local Government Finance Circulars

Local authorities retain all of the NDRI collected in their area. However, the contributable amount that they report is notionally pooled and then redistributed to councils as the distributable amount of NDRI, allocated to each local authority in proportion to each one’s most recent prior year NDRI mid-year estimate. As the combined total of NDRI and General Revenue Grant (GRG) provided to local authorities is guaranteed by the Scottish Government, any decrease in the amount of NDRI collected is compensated for by a corresponding increase in GRG and vice versa. Any changes from the provisional contributable amount reported to the final outturn contributable amount in any year is accounted for is accounted for in the calculation of future years’ distributable amounts.

The distributable amount is based upon the forecast of the NDRI made prior to the start of the year by the Scottish Fiscal Commission (SFC) and includes prior year adjustments. This is presented in Figure 2.9 (page 39) of the SFC’s publication ‘Scotland’s Economic and Fiscal Forecasts – December 2023’. The distributable amount is therefore not likely to match exactly the NDRI received in any year, as shown in Table 2.14, nor the total eventual contributions to the pool for any year. Final contributions to the pool are based on councils’ PCA, adjusted by the amount by which the previous year’s final outturn differs from the previous year’s PCA. Final contributions to the pool (and distributions to councils) are set out in the non-domestic rating account.

2.3.3 Rateable Values (RVs)

NDR bills are based on the Rateable Value (RV) of a property. The RV is based on a legally defined valuation and broadly corresponds to the notional rental value the property could achieve in the open market if it were vacant and available to let, taking account of the type and nature of the property. As such, it is not necessarily a reflection of the profitability, turnover or output of the ratepayer.

The RV of a non-domestic property is generally initially established when the property comes into existence, subject to rating exemptions (for instance, agricultural lands and buildings are exempt from rating). Rateable non-domestic properties and their corresponding RVs are listed on the valuation roll, which is maintained by the Scottish Assessors. RVs are periodically updated at non-domestic revaluations. The latest revaluation, assigning updated RVs to all non-domestic properties in Scotland, took effect in April 2023. Revaluations historically took place on a five-year cycle; however, there was a seven-year cycle following the 2010 revaluation and a six-year cycle following the 2017 revaluation, the latest revaluation having been delayed to 2023 due to the Covid-19 pandemic. Future revaluations will take place every three years, as recommended by the Barclay Review, with the next one planned for 2026.

Table 2.15 shows the types of properties, and associated RV on the valuation roll, by property type as at 1 April 2023. The valuation roll is continually updated, and the NDRI for 2023-24 will not be based solely on the snapshot of the valuation roll at April 2023. The composition of the valuation roll as at 1 April 2024 is also shown in Table 2.14b, Table 2.15a and Chart 2.10a in the associated Excel file. The latest valuation roll statistics are available from the Scottish Assessors Association website.

As at 1 April 2023, there were 258,536 properties on the valuation roll, with a total RV of £7.7 billion, as shown in Table 2.15. Industrial subjects and shops were the most prevalent types of property on the valuation roll, making up 22 per cent and 21 per cent of the number of properties, and 18 per cent and 19 per cent of the total RV respectively. Offices are the next largest category in terms of numbers. Together, these three categories accounted for 61 per cent of properties on the valuation roll, and 51 per cent of total RV.

Table 2.15: NDR Properties at 1 April 2023 by Property Class

Category	Number of properties	% of Properties on Valuation Roll	Rateable Value, £ thousands	% of RV on Valuation Roll
Shops	54,562	21.1%	1,448,789	18.9%
Public houses and restaurants	3,612	1.4%	120,725	1.6%
Offices	44,748	17.3%	1,042,709	13.6%
Hotels	5,450	2.1%	288,207	3.8%
Industrial subjects	57,391	22.2%	1,386,160	18.1%
Leisure, entertainment, caravans, etc.	27,911	10.8%	350,201	4.6%
Garages and petrol stations	4,037	1.6%	79,107	1.0%
Cultural	1,289	0.5%	55,091	0.7%
Sporting subjects	12,896	5.0%	39,988	0.5%
Education and training	3,607	1.4%	621,475	8.1%
Public service subjects	9,536	3.7%	360,972	4.7%
Communications	390	0.2%	31,451	0.4%
Quarries, mines, etc.	656	0.3%	17,158	0.2%
Petrochemical	138	0.1%	135,903	1.8%
Religious	5,911	2.3%	63,235	0.8%
Health and medical	3,014	1.2%	238,681	3.1%
Other	17,314	6.7%	166,423	2.2%
Care facilities	3,154	1.2%	136,990	1.8%
Advertising	1,578	0.6%	12,975	0.2%
Statutory undertaking	1,338	0.5%	1,079,777	14.1%
Not in use	4	0.0%	11	0.0%
All Non-Domestic Properties	258,536	100.0%	7,676,027	100.0%

Please note, the number of properties includes properties with a zero rateable value.

Source: Scottish Assessors Valuation Roll

Chart 2.10 provides a breakdown of properties on the valuation roll by local authority and RV band: up to and including £20,000; between £20,001 and up to and including £51,000; and above £51,000. These RV bands were significant in 2023-24 as £20,000 in RV was the cut-off for properties to be eligible for the Small Business Bonus Scheme (SBBS) (see Chapter 2.3.6) and £51,000 was the threshold above which the Intermediate Property Rate  was applied.  The accompanying table in the associated Excel file also provides separate figures for those in the RV bands: between £51,001 and up to and including £100,000; and above £100,000 (£100,000 being the threshold above which the Higher Property Rate was applied). (see Chapter 2.3.4).

Across Scotland, 81 per cent of non-domestic properties had a RV of up to £20,000. Ten per cent had a RV between £20,001 and up to and including £51,000. Nine per cent had a RV higher than £51,000, of which 4 per cent had an RV between £51,001 and £100,000 and 4.5 per cent had an RV above £100,000. The number of properties with a rateable value above £100,000 by local authority is provided alongside the data for Chart 2.10 in the associated Excel file.

Chart 2.10: Proportion of NDR Properties at 1 April 2023 by Local Authority and Rateable Value Band

Please note the following:

The number of properties includes properties with a zero rateable value.

Percentages for all bands by local authority are available in the Chart 2.10 tab of the associated Excel file.

Source: Scottish Assessors Valuation Roll

2.3.4 NDR Bills

NDR bills are calculated using the RV of the property, multiplied by the tax rate set nationally and annually by Scottish Ministers, less any relief or exemption entitlement.

(NDR Bill) Property = (RV) Property x (Tax Rate) National – (Reliefs) Property[6]

The tax rate depends on the RV band into which the property falls. The rates and RV thresholds are set nationally by the Scottish Government, and for the financial year 2023-24 the Basic Property Rate (BPR) was set at 49.8p for every £1 of rateable value. Properties with a rateable value greater than £51,000 and less than or equal to £100,000 were liable for the Intermediate Property Rate (IPR) of 51.1p for every £1 of rateable value, and those with a rateable value above £100,000 were liable for the Higher Property Rate (HPR) of 52.4p per £1 of rateable value. Table 2.16 sets the rates and corresponding RV thresholds in each year since 2019-20.

As NDR bills in Scotland are directly related to the RV of individual non-domestic properties, changes in the total RV occurring within a revaluation cycle i.e. between revaluation years, impact on the amount of NDR available for collection, as shown in Table 2.16. The version of Table 2.16 in the associated Excel workbook also shows years prior to 2019-20. Changes in total RV are due to the net impact of several factors, including increases in the tax base from new properties or extensions of existing properties; and decreases as demolished properties are deleted from the valuation roll, or as the RV is reduced as a result of appeals. More information and statistics on revaluation appeals are available in NDR Revaluation Appeals Statistics. The increase in RV between 2022-23 and 2023-24 will mainly be as a result of the revaluation.

Historically, inflation was a key driver of growth in NDRI, as changes in the BPR (or poundage as referred to in earlier years) had previously typically been tied to either the Retail Price Index (RPI) or the Consumer Price Index (CPI). However, in recent years this has not been the case; for 2019-20 Scottish Ministers set the BPR at 49.0p, a below-inflation increase from the year before, and for 2020-21 the rate was again increased by less than inflation, to 49.8p, although the increase was completely offset by a 1.6% universal relief which was automatically applied to all properties, as a response to the Covid-19 pandemic, effectively delivering a rate freeze for that year. For 2021-22 the rate was reduced to 49.0p, the same as in 2019-20, and in 2022-23 it was set at 49.8p, again a below-inflation increase compared to the year before.

At a revaluation, the BPR is reset, bearing in mind the resulting total RV change and the amount of revaluation appeals anticipated over the forthcoming cycle. Following the 2023 revaluation the BPR was kept at 49.8p and has been frozen since.

Some properties may receive reliefs or exemptions, which can reduce or completely remove their NDR liability. These are further discussed in Chapter 2.3.6.

Table 2.16: NDR Income, Total Rateable Value and Rates from 2019-20 to 2023-24

Category	2019-20	2020-21	2021-22	2022-23	2023-24
NDRI, £ millions	2,761	1,816	2,108	2,792	3,033
Total RV at 1 April, £ millions	7,462	7,386	7,325	7,296	7,697
BPR, pence	49.0	49.8	49.0	49.8	49.8
IPR, pence	n/a	51.1	50.3	51.1	51.1
IPR threshold, £	n/a	51,000	51,000	51,000	51,000
HPR, pence	51.6	52.4	51.6	52.4	52.4
HPR threshold, £	51,000	95,000	95,000	95,000	100,000

Please note the following:

NDRI figures are contributable income and, as such, reflect the final, audited income figures collected by local authorities, except for 2022-23 and 2023-24 which are the notified (provisional outturn) figures as the audits are not yet finalised for all councils. They are net of reliefs paid by Scottish Government, but gross of all local reliefs and top-ups to discretionary amounts paid by councils themselves.

 “n/a” indicates years prior to the introduction of the IPR where there were no IPR rates or thresholds.

Source: NDRI Audited Returns, NDRI Notified Returns, and Scottish Assessors Valuation Roll

2.3.5 Rates Retention Schemes

Two policy initiatives that directly link to the amount of NDR collected are: the Business Rates Incentivisation Scheme (BRIS) - since 2023-24 called the Non-Domestic Rates Incentivisation Scheme (NDRIS) - and Tax Incremental Financing (TIF).

BRIS was introduced from April 2012 to incentivise local authorities to maximise existing NDRI and attract new economic growth. It allows all local authorities that exceed their annual NDR buoyancy target, the target percentage increase in their tax base, to benefit from receiving additional grant, equal to 50 per cent of any additional NDR income. In effect, this means that only 50 per cent of the additional NDR income attributable to the increased buoyancy is deducted from the GRG.

This increased funding is carried forward between revaluation years, with each year’s increased funding being carried forward to the next year and added to any new retention awarded, assuming the previous year’s income is maintained. In 2021-22, the total amount of additional funding received under this scheme was £1.6 million (relating to 2019-20 payment amounts). The BRIS scheme was suspended for the period 2020-21 to 2022-23, as reliefs introduced during the Covid-19 pandemic significantly decreased NDRI in all local authorities. It was re-introduced in 2023-24 following the 2023 revaluation. Payment amounts for 2023-24 will affect the 2024-25 outturn contributable amount for those councils who exceeded their 2023-24 buoyancy target.

The Scottish Government is also piloting TIF which allows local authorities to fund public sector infrastructure, which unlocks private sector investment, contributing to sustainable and inclusive economic growth. This growth is funded from future incremental NDRI that is expected to be generated as a result of attracting more businesses into the area thanks to the upfront public sector enabling investment.

TIF is currently being piloted through secondary legislation under existing provisions of the Local Government Finance Act (1992) in four local authorities: Argyll & Bute, Falkirk, Fife and Glasgow. Of these four pilots, Argyll and Bute, Falkirk and Fife reported TIF income in 2023-24. They collectively retained a total of £3.3 million NDRI in 2023-24.

2.3.6 NDR Reliefs

There are a number of types of NDR relief that reduce the NDR bill for properties receiving it. More information on NDR reliefs in 2023-24 can be found in Finance Circular 5/2023.

Table 2.17 shows the amount of relief provided for the main types of relief available for each year between 2019-20 and 2023-24. Local reliefs and the elements of discretionary reliefs funded by local authorities are not included.

The gross amount of relief funded by the Scottish Government has decreased from £781.4 million in 2022-23 to £721.7 million in 2023-24. Key reasons for this overall decrease include the following changes introduced in April 2023 following revaluation:

• changes in the Small Business Bonus Scheme (SBBS) eligibility criteria;
• devolution of Empty Property Relief (EPR) to councils.

The decrease in relief funding was partly offset by the introduction of three transitional reliefs.

The General Revaluation Transitional Relief (GRTR) caps increases in gross NDR bills compared to those before the 2023 revaluation. It is awarded automatically to all properties, and in 2023-24 had a total value of £68 million. For 2023-24, increases compared to the gross bills before revaluation are limited to 12.5% for properties with a rateable value up to £20,000; 25% for properties with rateable values between £20,001 and £100,000, and 37.5% for those with rateable values above £100,000. These percentages increased to 40.6%, 87.5%, and 140.6% respectively in 2024-25 (compared to the gross bills before the revaluation), and will further increase in 2025-26.

The Small Business Transitional Relief (SBTR) caps the increases in net bills if, following the 2023 revaluation, properties:

• are no longer eligible for SBBS relief, or
• saw a reduction in eligibility for SBBS relief, or
• are no longer eligible for mandatory Rural relief.

In 2023-24, SBTR capped the increase in net bills at £600 compared to their net bill before the 2023 revaluation, and in total reduced NDR bills by £22 million. This cap increased to £1,200 in 2024-25, and will increase to £1,800 in 2025-26.

SBBS relief was reformed from 2023-24. These reforms reduced the cumulative rateable value at which ratepayers are eligible for 100% relief from 15,000 to 12,000, and introduced a tapered reduction to 25% for ratepayers with a cumulative rateable value of £15,000, further tapering to 0% at £20,000.

From 1 April 2023, reliefs and exemptions for unoccupied properties were devolved to local authorities, along with a cash transfer expected to cover the cost of providing this relief locally. In 2022-23, before they were devolved, the total value of reliefs and exemptions for unoccupied properties was £95 million.

Although relief spend decreased overall in 2023-24 compared to the previous year, many reliefs did see an increase in spend, as can be seen in Table 2.17. The main reasons for this increase were due to overall increases in RV at revaluation.

Table 2.17: Amount of NDR Relief Provided from 2019-20 to 2023-24 by Relief Type, £ thousands

Relief Type	2019-20	2020-21	2021-22	2022-23	2023-24
Empty Property Relief	87,500	78,670	88,070	95,471	n/a
Charity Relief	224,813	223,189	214,028	215,900	231,026
Sports Club Relief	15,747	14,783	13,140	14,717	16,082
Disabled Rates Relief	64,778	64,266	63,810	63,459	68,300
Small Business Bonus Scheme	278,055	279,441	271,176	281,542	231,150
Religious Exemptions	27,581	27,402	27,481	27,812	29,632
Rural Relief	3,914	3,822	3,775	3,888	1,187
Renewable Energy Relief	7,266	6,439	8,010	8,062	8,500
New Start Relief	172	n/a	n/a	n/a	n/a
Fresh Start Relief	3,812	2,321	4,086	5,970	4,653
General Revaluation Transitional Relief	5,243	36	13	169	68,278
Day Nursery Relief	9,788	9,601	9,762	10,095	9,836
BGA - Unoccupied New Build	3,468	2,973	2,304	1,905	3,775
BGA - New Occupied and Improved	31,713	10,519	12,978	22,416	21,161
Retail, Hospitality, Leisure (and Aviation) Relief	n/a	941,229	640,501	27,715	n/a
Small Business Transitional Relief	n/a	n/a	n/a	n/a	21,740
Parks Transitional Relief	n/a	n/a	n/a	n/a	1,502
1.6% Universal Relief	n/a	60,062	n/a	n/a	n/a
Other	1,211	1,609	1,568	2,276	4,834
Total Relief Provided	765,062	1,726,363	1,360,702	781,398	721,657

Please note the following:

Figures include mandatory and discretionary elements of relief where applicable, but exclude backdated payments of relief and exclude councils own contributions to reliefs.

‘Other’ includes Hardship Relief, Enterprise Areas Relief; District Heating Relief; Mobile Mast Relief (from 2018-19); New Fibre Relief (from 2018-19); and Lighthouse Relief (from 2019-20, previously recorded as a deduction).

“n/a” is used for years prior to a relief being introduced or after a relief is discontinued.

Source: NDRI Audited Returns for all years expect for 2022-23 and 2023-24 which are from Notified (provisional outturn) returns

Chart 2.11 shows the values of reliefs awarded during 2023-24. The SBBS, GRTR, SBTR, and Charity reliefs, including the mandatory reliefs and the parts of the discretionary reliefs which are funded by the Scottish Government, together accounted for £552 million, or around 77 per cent of the total amount of reliefs awarded.

Chart 2.11: Value of NDR Reliefs in 2023-24, £ millions

Please note that NDR reliefs reflect the notified income figures collected by local authorities, because the final, audited income figures are not yet available.

Please note that ‘Other’ includes Sports Club Relief; Rural Relief, Renewable Energy Relief; Fresh Start Relief; Parks Transitional Relief; Day Nursery Relief; BGA Reliefs; Hardship Relief; Enterprise Areas Relief; District Heating Relief; Mobile Mast Relief; New Fibre Relief; and Lighthouse Relief.

Source: NDRI Notified Returns

2.4 Surplus / Deficit to be met from Reserves

A surplus (-) occurs when a local authority’s revenue expenditure is lower than the amount of service income and general funding available to them. A surplus is added to a local authority’s reserves and carried forward to the next year.

A deficit (+) occurs when a local authority’s revenue expenditure is higher than the amount of service income and general funding available to them. Any deficit must be met from a local authority’s reserves.

The HRA reserve is not permitted to show a deficit at the end of the financial year and if this occurs, local authorities are required to transfer funds from the General Fund to cover this deficit.

Table 2.18 sets out the movement in the General Fund and HRA reserves in 2023-24. At 1 April 2023, local authorities held a total of £3,407 million in their General Fund (including Harbour) and HRA reserves. In year:

• local authorities’ income exceeded their revenue expenditure, resulting in a deficit of £257 million;
• local authorities transferred a total of net £244 million into the General Fund and HRA (£262 million into the General Fund and £18 million out of the HRA to other reserves). The majority of the £262 million transfer into the General Fund is accounted for by Glasgow City Council. The council transferred £200 million from its Capital Grants & Receipts Unapplied account to help fund £260 million of Equal Pay payments during 2023/24;
• local authorities’ International Financial Reporting Standard (IFRS) 9 unrealised gains was negligible. IFRS 9 unrealised gains relate to the difference between the fair value of investments compared with their original cost. As the underlying investments have not yet been sold, the net gain is ‘unrealised’ and so is excluded from the revenue reserves balance as this gain is not available to fund future expenditure.

 

Table 2.18: Movement in Reserves in 2023-24, £ millions

Movement	General Fund	HRA	Total
Balance as at 1 April 2023	3,198	209	3,407
Add: Surplus (+) or Deficit (-) on provision of services after statutory adjustments	-255	-2	-257
Add: Net movements in (+) or out (-) due to transfers between reserves	262	-18	244
Less: Increase (+) or decrease (-) in IFRS 9 unrealised gains	27	0	27
Balance as at 31 March 2024	3,178	189	3,367

Please note that balance figures exclude amounts relating to unrealised gains that have been included in revenue reserves applying under IFRS 9: Financial Instruments.

Source: LFR 23

This meant that, overall, the General Fund and HRA decreased by £40 million in year, giving a total balance of £3,367 million at 31 March 2023. More information on local authorities’ reserves is provided in Chapter 4.1.