Local
Government Finance Settlement
Briefing No 133 February 2006
Introduction
The Minister for Finance and Public Service Reform,
Tom McCabe MSP, has announced an increase of almost four per cent
in the finance settlement for local authorities for 2006-07. This
briefing is a follow up to Briefing no 127 which covered the provisional
two year finance settlement announced late 2005.
The Settlement
Tom McCabe confirmed a four percent increase
in funding giving councils £8.322 billion in revenue for core
services and £1.1 billion through ring-fenced grants for 2006-2007.
There will also be an additional one-off payment of £140 million
to meet spending pressures such as Equal Pay. Individual Council's
settlements can be seen over the page.
Implications
The Convention of Scottish Local Authorities
(COSLA) expressed their disappointment that the Executive had
not responded to both their and the finance committee's warning
that Council Tax would have to rise in order to protect services
and jobs. Local Councils are currently announcing Council Tax
bills for 2006-2007. Many increases are above the 2.5% recommended
by the Executive. There is concern that jobs and services may
be under threat. The rises have inevitably prompted increased
discussion about efficiencies in local government, the future
of the Council Tax and local government boundary changes.
Boundary Changes
Questions are being raised about the cost of
32 Local Councils plus Health Boards and Quangos governing Scotland
now that we have a parliament. The Herald newspaper recently published
a plan for 14 councils to cover all of Scotland. UNISON recognises
that there is scope for a debate about public service structures
but solutions have to be decided by communites not imposed from
the centre. Structures are in any case simply a distraction from
the need to properly fund local services.
UNISON Response
UNISON Scotland has been calling for the Scottish
Executive to fund councils to carry out their legal requirement
to deliver equal pay and compensation for past discrimination
for local government staff. Scottish Secretary Matt Smith noted
that the settlement will not pay for increased demands on local
councils. In particular, it is only a modest contribution to the
cost of delivering on equal pay and compensating low-paid women
for past discrimination. It is unfair to have equal pay in some
public services funded by central government whilst others have
to balance cuts in jobs and services and increases in council
tax.
AGGREGATE EXTERNAL FINANCE INCREASES FOR 2006-07 AND 2007-08
|
COUNCIL
|
AEF 2006-07
£m
|
% increase
|
AEF 2007-08
£m
|
% increase
|
|
Aberdeen City
|
291.033
|
2.6%
|
297.908
|
2.4%
|
|
Aberdeenshire
|
342.668
|
6.2%
|
353.783
|
3.2%
|
|
Angus
|
173.361
|
5.2%
|
178.975
|
3.2%
|
|
Argyll & Bute
|
175.107
|
6.0%
|
179.354
|
2.4%
|
|
Clackmannanshire
|
74.085
|
3.8%
|
76.708
|
3.5%
|
|
Dumfries & Galloway
|
251.025
|
4.5%
|
257.847
|
2.7%
|
|
Dundee City
|
253.072
|
2.6%
|
258.977
|
2.3%
|
|
East Ayrshire
|
193.039
|
4.7%
|
198.195
|
2.7%
|
|
East Dunbartonshire
|
152.338
|
3.1%
|
155.859
|
2.3%
|
|
East Lothian
|
134.791
|
5.8%
|
139.369
|
3.4%
|
|
East Renfrewshire
|
137.384
|
6.7%
|
141.506
|
3.0%
|
|
Edinburgh, City of
|
629.886
|
3.0%
|
646.873
|
2.7%
|
|
Eilean Siar
|
96.738
|
2.6%
|
98.870
|
2.2%
|
|
Falkirk
|
225.706
|
4.2%
|
233.345
|
3.4%
|
|
Fife
|
536.744
|
3.8%
|
555.133
|
3.4%
|
|
Glasgow City
|
1,137.561
|
2.6%
|
1,164.812
|
2.4%
|
|
Highland
|
390.058
|
4.8%
|
403.102
|
3.3%
|
|
Inverclyde
|
145.889
|
4.0%
|
149.753
|
2.6%
|
|
Midlothian
|
127.536
|
3.3%
|
131.433
|
3.1%
|
|
Moray
|
137.875
|
4.2%
|
142.459
|
3.3%
|
|
North Ayrshire
|
222.300
|
4.2%
|
228.837
|
2.9%
|
|
North Lanarkshire
|
513.147
|
4.5%
|
529.295
|
3.1%
|
|
Orkney
|
58.510
|
6.8%
|
59.538
|
1.8%
|
|
Perth & Kinross
|
206.198
|
5.4%
|
213.225
|
3.4%
|
|
Renfrewshire
|
272.644
|
3.0%
|
280.608
|
2.9%
|
|
Scottish Borders
|
181.825
|
5.0%
|
187.990
|
3.4%
|
|
Shetland
|
79.562
|
2.7%
|
81.355
|
2.3%
|
|
South Ayrshire
|
168.429
|
3.9%
|
173.269
|
2.9%
|
|
South Lanarkshire
|
466.130
|
3.4%
|
479.346
|
2.8%
|
|
Stirling
|
138.696
|
2.7%
|
143.282
|
3.3%
|
|
West Dunbartonshire
|
163.864
|
2.7%
|
167.768
|
2.4%
|
|
West Lothian
|
244.915
|
4.9%
|
252.234
|
3.0%
|
|
Scotland
|
8,322.115
|
3.9%
|
8,561.009
|
2.9%
|
The year on year increases of 3.9% take into account an adjustment
of around £80 million to reflect the transfer of respnsiblity
for concessionary travel.
Contacts list:
Kay Sillars
k.sillars@unison.co.uk
Dave Watson -
d.watson@unison.co.uk
@ The P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0845 355 0845
Fax 0141-307 2572
Further information:
COSLA
http://www.cosla.gov.uk/newsHome.asp?leftId=10001D7EA-10766761&rightId=10001D7EA-10766715&hybrid=false
Finance Committee Report
http://www.scottish.parliament.uk/business/committees/finance/reports-05/fir-05-05-response.pdf
Scottish Executive
http://www.scotland.gov.uk/News/Releases/2006/02/08134153
UNISON briefing no 127
http://www.unison-scotland.org.uk/briefings/lgfinance2006.html
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Executive | Scottish Parliament | Briefings Home
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