FINANCE: Funding of £12.5 billion for local councils

By Lucy Ashton.

Details have been published of how the £12.5 billion in Scottish Government funding for 2022/23 will be distributed to local authorities.

The settlement represents a total cash increase of £917.9 million or 7.9%, which is the equivalent of a real terms rise of 5.1% to support vital local government services.

It includes a real terms increase in day-to-day revenue funding of 4.9%, compared with the 2021/22 draft budget.

In addition, The Scottish Government has responded to requests by councils for more financial flexibility by enabling them to make their own local decisions on council tax.

Finance Secretary Kate Forbes, pictured right, said: “The 2022/23 Budget confirms that, even in the face of the economic uncertainty caused by the pandemic, we are providing councils with a real terms increase to their budgets for the coming year of more than 5%.

“Local authorities are key partners with government as we tackle the pandemic and protect our communities, businesses and public services. As we move forward, they will play an important leadership role in creating a greener, fairer and more prosperous Scotland.

“This settlement reflects that and includes protection to the core budget in cash terms, an extra £554 million for health and social care, £145 million for additional teachers and support staff and £94 million to support the expansion of free school meals.

“I have been clear that this Budget has required difficult choices. But I am determined that councils should be fairly funded within the limited resources we have available.”

Meanwhile, the trade unions continue their fight for more cash to bolster up diminishing local government funds for public services, and SNP administration leader Cllr Jonathan McColl continues to put the poor mouth on it saying a lack of finance is to blame for this.

LOCAL GOVERNMENT FINANCE 2022-23: TOTAL REVENUE SUPPORT

2021-22 2022-23 Increase Increase
Local Authority £m £m £m %
Aberdeen City 376.0 390.6 14.7 3.9
Aberdeenshire 479.2 499.6 20.4 4.3
Angus 226.9 237.9 11.0 4.8
Argyll & Bute 213.3 219.7 6.4 3.0
Clackmannanshire 105.7 110.2 4.5 4.2
Dumfries & Galloway 314.6 329.0 14.4 4.6
Dundee City 327.7 338.0 10.2 3.1
East Ayrshire 256.9 268.7 11.8 4.6
East Dunbartonshire 208.0 217.7 9.7 4.7
East Lothian 194.7 203.6 8.9 4.5
East Renfrewshire 196.1 205.5 9.4 4.8
Edinburgh, City of 831.9 872.9 41.1 4.9
Eilean Siar 101.6 103.7 2.1 2.1
Falkirk 315.7 327.6 11.9 3.8
Fife 725.3 760.8 35.5 4.9
Glasgow City 1,362.9 1,407.9 44.9 3.3
Highland 506.3 523.6 17.3 3.4
Inverclyde 181.9 187.8 5.9 3.3
Midlothian 183.7 190.3 6.6 3.6
Moray 180.2 188.9 8.8 4.9
North Ayrshire 303.9 314.5 10.6 3.5
North Lanarkshire 691.2 719.4 28.2 4.1
Orkney 82.7 83.9 1.2 1.5
Perth & Kinross 281.3 294.8 13.5 4.8
Renfrewshire 351.2 365.2 13.9 4.0
Scottish Borders 233.2 243.0 9.8 4.2
Shetland 97.3 98.8 1.6 1.6
South Ayrshire 223.7 235.8 12.1 5.4
South Lanarkshire 625.8 651.9 26.1 4.2
Stirling 188.7 196.1 7.4 3.9
West Dunbartonshire 207.4 213.5 6.1 2.9
West Lothian 353.3 369.7 16.4 4.6
Undistributed 115.1 482.9 367.8 319.4
Scotland 11,043.4 11,853.6 810.2 7.3

This publication starts the formal consultation period on the 2022/23 local government settlement. The final allocations will be published following approval by the Scottish Parliament.

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