Scottish Local Government Financial Statistics 2011-12

EXECUTIVE SUMMARY

Revenue Expenditure

Net revenue expenditure on services reduced slightly from £11.9 billion in 2010-11 to £11.5 billion in 2011-12. The highest spending service in the general fund is education which had net expenditure of £4.55 billion (39.6% of net expenditure). Social Work is the next largest service with net expenditure of £2.87 billion (25.0% of net expenditure).

Revenue Income

Total revenue income grew from £16.5 billion in 2007-08 to £18.0 billion in 2010-11 before falling back slightly to £17.9 billion in 2011-12.

Council Tax

• The average Band D council tax in Scotland was £1,149 in 2011-12.
• Council tax income was £1.9 billion in 2011-12 (excluding council tax benefit).

The total number of chargeable dwellings (i.e. the tax base) has increased slightly each year, rising from 2.350 million in September 2008 to 2.402 million in September 2012.

As a result of the council tax freeze, council tax levels have remained fixed since 2007-08 (except in Stirling where there was a slight drop in council tax in 2008-09). In the 2 years prior to the council tax freeze, average band D council tax increased from £1,094 in 2005‑06 to £1,149 in 2007-08.

Non-domestic Rates

Non-domestic rates bills are calculated using the rateable value of a non-domestic property, multiplied by the poundage rate (42.6 pence in 2011-12) less any relief entitlement.

• As at 1^st April 2012, there were 217,598 non-domestic properties on the Valuation Roll, with a total rateable value of £6.718 billion.
• The non-domestic rates 'Distributable Amount' (as described in chapter 2) was £2.182 billion in 2011-12.
• The gross amount of non-domestic rates relief provided in 2011-12 was £542 million.

The total rateable value (RV) of non-domestic rate properties has increased from £6.612 billion at revaluation (1 April 2010) to £6.718 billion at 1^st April 2012. This increase in the tax base is due to the net impact of increased RV from new properties and extensions, and decreases in RV as appeals are resolved or properties demolished.

Non-domestic rate income collected increased from £2.138 billion in 2010-11 to £2.252 billion in 2011-12. The normal inflationary increase in the poundage rate (from 40.7 pence to 42.6 pence) is the key driver of this increase in income.

Capital Expenditure

Total expenditure funded from capital resources was £2.66 billion in 2011-12 ( £0.60 billion in the housing revenue account and £2.06 billion in the General Fund), compared to £2.35 billion in 2010-11 - an increase of £313m. The majority of capital expenditure went on new construction, conversions and enhancements to existing buildings, this category accounted for over 80% of expenditure.

General fund capital expenditure in 2011-12 was £2,062 million. The services with the highest capital expenditure were education with £692 million (34%) and roads and transport which had expenditure of £483 million (23%).

Reserves

On 1 April 2011 local authorities had total revenue reserves of £1.56 billion; over the course of the year this rose by £0.19 billion (12%) to stand at £1.75 billion on 31^st March 2012. Similarly capital reserves grew by £0.06 billion (12%), from £0.51 billion to £0.57 billion.

Local Government Pensions

• Local Government Pension Fund income in 2011-12 was £1.96 billion.
• Local Government Pension Fund expenditure in 2011-12 was £1.28 billion

Pension fund expenditure on benefits (e.g. pensions and lump sums) has increased from £559 million in 2007-08 to £955 million in 2011-12. This is likely to be due in part to an increase in the number of retirements (including early retirements) over this period.