Briefing No. 149 Dec 2006
Local Government Funding
2007-08
Funding Boost for Councils
Introduction
The Scottish Executive has responded to widespread
concerns expressed by UNISON, local authorities and others over
the 2007-08 financial settlement for councils. The Finance Minister
has announced a package of measures worth more than £250 million
of additional benefits for Scottish local authorities in 2007-08
including new funding of £201 million (£140 million for revenue
and £61 million for capital).
Background
The Scottish Executive has provided a real term
increase in local authority spending in recent years. In addition
there are ring fenced funds provided from other Scottish Executive
budgets. However, there are also growing demands on local government
spending, at least partly, due to the demands placed on local
authorities from the Scottish Executive. In addition efficient
government savings were top sliced from local government. The
cumulative impact was described in the Parliament's Finance Committee
report on last year's budget settlement:
"The Minister has acknowledged that new
funding pressures are impacting on local authorities and promised
to revisit this next year. That is a positive commitment. However,
the Committee remains very concerned that to meet the 2.5% council
tax target, the Executive's target for spending leaves a shortfall
which the Committee calculates as £84.9m over and above the £58.5m
efficiency savings target." (5th Report, 2005: Stage 2 of
the 2006-07 Budget Process )
The Finance Committee in its report into the cost
of meeting equal pay commitments also highlighted the need to
ensure funding was in place. For further details see the UNISON
Scotland Equal Pay Campaign Pack http://www.unison-scotland.org.uk/equalpay/index.html.
2007-08 Financial Settlement
Total revenue funding provided by the Executive
through the core settlement to local authorities in 2007-08 will
rise to £8.7 billion - an increase of £393 million or 4.7 per
cent over 2006-07, over what was previously announced. The extra
funding of £61 million for capital means the total support for
capital provided by the Executive to local authorities will be
£906 million next year. Together with various other measures,
this means that local government will now benefit in 2007-08 from
a package of measures worth more than £250 million.
Councils were already due to receive around a further
£954 million of revenue grants. In total, therefore, support from
the Executive, including both revenue and capital will rise to
£10.5 billion in 2007-08.
In return for this increase councils have given
assurances to take action to increase council tax collection rates,
exert a downward pressure on council tax levels and increase the
target level of their efficiency savings by at least £61 million.
Local Government Settlement by Council
| |
AEF 06-07 £m
|
AEF 07-08 £m
|
£m incr'se
06-07
|
% incr'se
06-07
|
Share additn'l
£157m
|
|
Aberdeen City
|
291.033
|
303.535
|
12.501
|
4.3%
|
5.749
|
|
Aberdeenshire
|
342.668
|
360.633
|
17.965
|
5.2%
|
6.987
|
|
Angus
|
173.361
|
182.297
|
8.935
|
5.2%
|
3.381
|
|
Argyll & Bute
|
175.107
|
182.389
|
7.283
|
4.2%
|
3.091
|
|
Clackm'nshire
|
74.085
|
78.144
|
4.058
|
5.5%
|
1.462
|
|
Dumfries & Galloway
|
251.025
|
262.479
|
11.454
|
4.6%
|
4.713
|
|
Dundee City
|
253.072
|
263.497
|
10.424
|
4.1%
|
4.588
|
|
East Ayrshire
|
193.039
|
201.961
|
8.922
|
4.6%
|
3.823
|
|
East Dunbartonshire
|
152.338
|
158.975
|
6.636
|
4.4%
|
3.181
|
|
East Lothian
|
134.791
|
142.004
|
7.213
|
5.4%
|
2.689
|
|
East Renfrewshire
|
137.384
|
144.258
|
6.874
|
5.0%
|
2.810
|
|
Edinburgh
|
629.886
|
658.379
|
28.493
|
4.5%
|
11.789
|
|
Eilean Siar
|
96.738
|
100.261
|
3.524
|
3.6%
|
1.406
|
|
Falkirk
|
225.706
|
237.574
|
11.868
|
5.3%
|
4.307
|
|
Fife
|
536.744
|
565.530
|
28.785
|
5.4%
|
10.585
|
|
Glasgow
|
1,137.561
|
1,183.691
|
46.130
|
4.1%
|
19.181
|
|
Highland
|
390.058
|
409.459
|
19.401
|
5.0%
|
6.481
|
|
Inverclyde
|
145.889
|
152.371
|
6.482
|
4.4%
|
2.659
|
|
Midlothian
|
127.536
|
133.920
|
6.384
|
5.0%
|
2.529
|
|
Moray
|
137.875
|
145.089
|
7.214
|
5.2%
|
2.673
|
|
North Ayrshire
|
222.300
|
233.053
|
10.753
|
4.8%
|
4.287
|
|
North Lanarkshire
|
513.147
|
539.013
|
25.866
|
5.0%
|
9.874
|
|
Orkney
|
58.510
|
61.071
|
2.560
|
4.4%
|
1.542
|
|
Perth & Kinross
|
206.198
|
217.231
|
11.033
|
5.4%
|
4.092
|
|
Renfrewshire
|
272.644
|
285.741
|
13.097
|
4.8%
|
5.228
|
|
Scottish Borders
|
181.825
|
191.465
|
9.640
|
5.3%
|
3.537
|
|
Shetland
|
79.562
|
82.882
|
3.320
|
4.2%
|
1.537
|
|
South Ayrshire
|
168.429
|
176.543
|
8.114
|
4.8%
|
3.339
|
|
South Lanarkshire
|
466.130
|
488.231
|
22.101
|
4.7%
|
9.045
|
|
Stirling
|
138.696
|
145.935
|
7.239
|
5.2%
|
2.704
|
|
West Dunbartonshire
|
163.864
|
170.816
|
6.952
|
4.2%
|
3.095
|
|
West Lothian
|
244.915
|
256.988
|
12.072
|
4.9%
|
4.837
|
|
Scotland
|
8,322.115
|
8,715.410
|
393.295
|
4.7%
|
157.201
|
Action for branches
UNISON of course welcomes this increase in funding
that goes some way towards giving local government the funding
increases that other services have received in recent years. Councils
will still face very real funding pressures on issues such as
free care for the elderly and equal pay. Not only the initial
cost of single status but the one off cost of addressing claims
for past discrimination.
Branches will wish to look at the impact this funding
increase will have on their own council together with other local
financial information. In particular branches will want to look
at how councils intend to use these addition funds to ensure that
single status is properly funded. Branches should also look at
additional savings councils may make from increased council tax
collection rates and the disposal of assets. This may provide
the finance to meet the one off cost of past discrimination claims.
For further information on how to analyse council
finances see the Equal Pay Campaign Pack http://www.unison-scotland.org.uk/equalpay/index.html
or contact the P&I Team.
Contacts list:
Dave Watson
d.watson@unison.co.uk
@P&I Team
14 West Campbell Street
GLASGOW
G2 6RX
Tel: 0845 355 0845
Fax: 0141 307 2572
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