Financial Scrutiny Unit Briefing Local Government Funding: Draft Budget and provisional allocations to local authorities

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1 The Scottish Parliament and Scottish Parliament Infor mation C entre l ogos. Financial Scrutiny Unit Briefing Local Government Funding: Draft Budget and provisional allocations to local authorities Allan Campbell 21 January /07 This briefing discusses and analyses the Scottish Government s budget for local government, and the provisional allocations to individual local authorities, for A revised local government finance circular, containing updated allocations to local authorities, will be published shortly.

2 CONTENTS EXECUTIVE SUMMARY... 3 DRAFT BUDGET : LOCAL GOVERNMENT... 4 LOCAL GOVERNMENT BUDGET BREAKDOWN... 4 REAL TERMS CHANGE IN GENERAL RESOURCE GRANT + NDRI... 5 SCOTTISH GOVERNMENT FIGURE 2% REDUCTION... 5 ADJUSTING THE BUDGET FOR REPROFILING AND OTHER IN-YEAR CHANGES... 5 LOCAL GOVERNMENT SHARE OF THE SCOTTISH BUDGET... 6 LOCAL GOVERNMENT BUDGET SINCE ESTABLISMENT OF THE SINGLE POLICE AND FIRE FORCES... 7 NON-DOMESTIC RATES INCOME... 8 COUNCIL TAX... 8 COMMITMENTS... 9 PROVISIONAL ALLOCATIONS TO LOCAL AUTHORITIES... 9 PROCESS FOR ALLOCATIONS... 9 FUNDING METHOD PROVISIONAL REVENUE ALLOCATIONS Provisional revenue allocations real terms change Provisional revenue allocations per head PROVISIONAL CAPITAL ALLOCATIONS ANNEX DETAILED TABLES SOURCES RELATED BRIEFINGS GLOSSARY Various abbreviations are used throughout this briefing. A key is set out below. AME Annually Managed Expenditure DEL Departmental Expenditure Limit GRG General Revenue Grant (also known as General Resource Grant) LG Local Government NDRI Non-Domestic Rates Income NPD Non-Profit Distributing Model P+F Police and Fire SG Scottish Government 2

3 EXECUTIVE SUMMARY The total allocation from the Scottish Government to local government in will be 10,152.3m, a substantial reduction on the allocation of 10,756.7m, although some of this reduction is due to reprofiling and other changes to capital expenditure. Local government s percentage share of the Scottish budget also falls 1.7 percentage points from 32.3% to 30.6% in (although once adjustments are made to allow a like for like comparison, the percentage share falls by 1.1 percentage points). Within this total allocation, the combined General Resource Grant + Non-Domestic Rates Income figure, which is used to calculate local government s total revenue settlement, falls by 5.2%, or more than 500 million, in real terms (the equivalent figure in cash terms is a reduction of 3.6%, or 349m). In historic terms, since the transfer of police and fire to the central forces, the local government settlement has fallen by 1.9% in real terms ( m), whereas the Scottish Government s DEL+NDRI has increased by 3.2% in real terms (+ 1,018.8m). Non-Domestic Rates income is forecast to fall by 2.8% in real terms in This is in contrast to the previous spending review period, which saw annual above inflation increases in NDRI. The Draft Budget explains that this is due to lower than forecast growth in the tax base and low inflation resulting in low growth in poundage. The Draft Budget further confirms that the local government settlement contains an additional 70m to freeze the Council Tax for another year. This brings the total cost of the freeze in to 630m, and the total cumulative cost from to to 3,150m, assuming all local authorities agree to the terms of the freeze. It should be noted that the allocations to local authorities in this briefing are still subject to discussion between the Scottish Government and local government and are provisional at this point. Bearing that in mind, given the overall settlement, unsurprisingly all local authorities are due to receive a significant real terms reduction in their revenue settlement. In percentage terms, those councils who face the largest reductions are Shetland, Eilean Siar, Dundee City and Orkney which all receive real terms reductions of more than 5.5%. In absolute terms, those councils who face the largest reductions are Glasgow, Edinburgh, North Lanarkshire and South Lanarkshire, who all receive real terms reductions of more than 29 million. Again though it must be noted that these allocations are provisional, and subject to change when a revised Local Government Finance Circular is issued. 3

4 DRAFT BUDGET : LOCAL GOVERNMENT LOCAL GOVERNMENT BUDGET BREAKDOWN The presentation of local government in the Draft Budget has changed. Rather than its own portfolio chapter, local government is now included within the Social Justice, Communities and Pensioners Rights portfolio. The total allocation to local government in will be 10,152.3m. This is a substantial reduction on the allocation of 10,756.7m, although some of this is due to reprofiling and other changes made to capital aspects of the budget. Table 1 and Figure 1 below set out the level 3 breakdown of the local government settlement, as presented in the Draft Budget (and so not re-calculated for reprofiling and other changes), in cash and real terms. Table 2 on page 6 adjusts the budget for these changes. Table 1 Local Government level 3 breakdown m (cash ) Cash change Cash change % (real, prices) Real change Real change % General Revenue Grant Non-Domestic Rates Support for Capital Specific Resource Grants Specific Capital Grants Total Local Government 7, , % 6, % 2, , % 2, % % % % % % % 10, , % 9, % of which: RDEL 7, , % 6, % CDEL % % AME 2, , % 2, % GRG+NDRI % % Note: both the capital allocations and Total Local Government are affected by reprofiling and other changes. Table 2 below adjusts these budgets for these changes. 4

5 Figure 1 Local Government settlement General Revenue Grant: 6,685.9 Non- Domestic Rates: 2,768.5 Support for Capital: Specific Resource Grants: 91.0 Specific Capital Grants REAL TERMS CHANGE IN GENERAL RESOURCE GRANT + NDRI The Scottish Government guarantees the combined general resource grant and distributable non-domestic rate income figure, approved by Parliament, to each local authority. If nondomestic rate income is lower than forecast, this is compensated for by an increase in general revenue grant and vice versa. Therefore, to calculate Local Government s revenue settlement, the combined general resource grant + NDRI figure is used. Table 1 above shows that the combined GRG+NDRI falls by 507 million, or 5.2%, in real terms. In cash terms this is a reduction of 349 million, or 3.6%. This calculation is not affected by the reprofiling issue, as it only concerns revenue budgets. SCOTTISH GOVERNMENT FIGURE 2% REDUCTION The Scottish Government has regularly cited a figure of a 2% reduction in councils budgets during Parliamentary proceedings (see for example, First Ministers Questions, 14 January 2016). The Government has confirmed (Scottish Government 2016) that there are two parts to this method of calculating the reduction in the local government settlement: First, the Government uses a figure of 320m for the cash reduction in the local government revenue budget. This is the 350m cash reduction in GRG+NDRI (rounded from 349.1m see table 1 above) reduced by 30m through an extra 30m from the Children and Young People Act that was added to the overall revenue figures in Local Government Finance Circular 7/2015, but is not in the Draft Budget. This 320m is then compared to local government s total estimated expenditure in , which the Government states will be 15,800 million, giving a figure of 2% (i.e. 320m as a percentage of 15,800m). In addition to government grant, this figure includes estimated income from the council tax and from fees and charges. The most recently available outturn figure for total gross revenue expenditure by local government (Scottish Government 2015b) is 15,300 million in It appears that the estimated figure of 15,800 million has been derived from this outturn figure. ADJUSTING THE BUDGET FOR REPROFILING AND OTHER IN-YEAR CHANGES From the numbers presented in the Draft Budget, the capital allocation appears to be falling substantially by more than 30% in However, as noted above, this includes a number of reprofiling and other changes in both and (see footnotes 3 and 4 to table 5

6 9.12 in the Draft Budget). It is not clear from the Draft Budget exactly how to adjust the figures to make them comparable on a like for like basis. The Government has confirmed (Scottish Government 2016) that the starting point for local government s capital allocation is a commitment by the Government to maintain local government s percentage share (26.02%) of the total Scottish Capital DEL (excluding financial transactions) from This is the baseline, to which other in-year and year-to-year reprofiling is added to, and taken away from, to produce the allocations in the Draft Budget. Table 2 below sets out both the like for like figures, as supplied by the Government, and the actual figures in the Draft Budget. Table 4 in the Annex reconciles these figures precisely and sets out each individual change involved. Table 2 shows that, once the capital budget is adjusted in this way, the real terms change in the Local Government capital budget becomes +4.5% (compared to -30.7% in the unadjusted budget) and the real terms change in Total Local Government is -4.5% (compared to -7.2% in the unadjusted budget). Table 2 Local Government capital and total settlement adjusted m (cash) (real, prices) Real change Real change DEL Capital % Effect of reprofiling and other changes Adjusted (maintaining 26.02% capital share) % Total Local Government Effect of reprofiling and other changes Adjusted (maintaining 26.02% capital share) 10, , , % , , , % LOCAL GOVERNMENT SHARE OF THE SCOTTISH BUDGET In terms of local government s share of the Scottish budget, to ensure comparability, this is calculated on the basis of the total local government settlement as a percentage of Scottish Government DEL+NDRI. Table 3 shows that local government s share of the Scottish budget is falling by 1.7 percentage points. Again, this is based on the figures presented in the Draft Budget. The adjustments made to the capital budget referred to throughout this briefing also affect this calculation once adjustments are accounted for, local government s share of the overall budget falls by 1.1 percentage points. 6

7 Table 3 Local Government share of the Scottish Budget m (cash) Change (percentage points) LG total 10, ,152.3 SG DEL+ DNRI 33, ,212.6 LG as a % of SG DEL+NDRI 32.3% 30.6% -1.7 LG total (including changes in table 2) SG DEL+ NDRI (including changes in table 2) LG as a % of SG DEL+NDRI (including changes in table 2) 10, , , , % 30.8% -1.1 LOCAL GOVERNMENT BUDGET SINCE ESTABLISMENT OF THE SINGLE POLICE AND FIRE FORCES In September 2015, SPICe published Local Government Finance: facts and figures, (Campbell 2015), which provided a range of historical financial data, including estimates of the local government settlement both with and without the transfer of police and fire funding to the single forces in This briefing will be updated in March, once the latest Local Government Financial Statistics have been published. With Draft Budget , there are now four financial years since the transfer of police and fire functions. Therefore, rather than having to provide complex estimates involving transferring back in estimates of police and fire funding, we can look solely at the local government settlements from to Figure 2 and table 5 in the Annex show the annual year on year change in both the local government settlement and the Scottish Government s DEL+NDRI. All numbers in the figure and table have been reprofiled as explained earlier, including additional changes to earlier years, as set out in the September SPICe briefing. Overall, since , the local government settlement has fallen by 1.9% in real terms ( m), whereas the Scottish Government s DEL+NDRI has increased by 3.2% in real terms (+ 1,018.8m). 7

8 Figure 2 historic local government settlements since police and fire transfers, compared to Scottish Government DEL+NDRI 2.4% 2.7% 0.3% 1.3% 3.2% -0.8% -1.9% Note: figures have been adjusted for reprofiling and other changes, as detailed in Local Government Finance: facts and figures, and table 4 in the annex to this briefing. NON-DOMESTIC RATES INCOME -4.5% to Local Government Scottish Government Non-Domestic Rates income is forecast to fall by 2.8% in real terms in This is in contrast to the previous spending review period, which saw annual above inflation increases in NDRI. The Draft Budget states that this is due to lower than forecast growth in the tax base and low inflation resulting in low growth in poundage, although the precise reasons behind the forecast are unclear. The Government is proposing a number of changes to the large business supplement and some reliefs. Local Government Finance Circular 7/2015 provides further details of the changes to NDR for , including: The provisional poundage rate of 48.4p, with a large business supplement of 2.6p. These will be confirmed following imminent publication of the English equivalent rate. The current poundage is 48p with a large business supplement of 1.3p Changes to empty property relief Changes to renewable energy relief A continuation of the small business bonus scheme. COUNCIL TAX The Government confirmed that it is currently considering its response to the recently published report of the Commission on Local Tax Reform (2015), and will bring forward detailed 8

9 proposals in the new year to reform the current system, drawing on the evidence considered by the Commission. The Draft Budget further confirms that the settlement contains an additional 70m to freeze the council tax for another year. This brings the total cost of the freeze in to 630m, and the total cumulative cost from to to 3,150m, assuming all local authorities agree to the terms of the freeze. COMMITMENTS Aside from the council tax freeze, local government is also expected to maintain teacher numbers at 2015 levels nationally, and secure places for all probationers under the teacher induction scheme. Circular 7/2015 also confirms that, for the Scottish Government would not seek to claw back funding from those local authorities who had not met the teacher number or pupil teacher ratio targets. But, it also notes that only those authorities who have met the targets would receive a share of the additional 10m held back. The Draft Budget and the Circular both also refer to an additional 250 million transfer from the NHS to health and social care partnerships to ensure improved outcomes in social care. But, this amount is not included in the local government settlement (it is in the Health budget). There is also a 33 million investment in attainment, in the Education budget. As this is related to schools, it could broadly be termed local government funding but, again, the amounts are not included in the local government settlement. It should be noted that these commitments are still subject to further discussions between the Scottish Government and COSLA so are not, at this stage, fixed. PROVISIONAL ALLOCATIONS TO LOCAL AUTHORITIES PROCESS FOR ALLOCATIONS As with the parliamentary process for the Scottish Government s budget, the process for allocating funds to individual local authorities has also been affected by the delay in publication of the UK Government s Spending Review. Following publication of the provisional allocations in Circular 7/2015, the amended parliamentary process for consideration of the allocations to local authorities runs as follows: 16 December 2015 Draft Budget and Local Government Finance Circular 7/2015 published, setting out provisional allocations to local authorities 15 January 2016 Initial deadline for COSLA to respond to provisional allocations. On 21 January it was announced that a new deadline had been set, and discussions were expected to conclude shortly (BBC News 2016). Late February 2016 Likely date for Budget Bill Stage 3. Local Government Finance Order follows very shortly after (normally the next day), containing the formal allocations of the funding settlement for Throughout the Circular to local authorities, the Scottish Government only refers to COSLA, and not the new Scottish Local Government Partnership set up by four councils that left COSLA in Therefore it would appear that those councils will still need to communicate any issues with the circular through COSLA. It is not clear how these arrangements will work in practice, nor is it clear how the Scottish Local Government Partnership has inputted to the discussion to date. It is the Scottish Government s policy to only negotiate with COSLA. 9

10 The figures for revenue support in the Draft Budget do not match those in the Circular. This is due to the figures in the Circular including allocations from other portfolios. It should be noted that these allocations are still subject to discussion between the Scottish Government and local government and are still provisional at this point. A further Local Government Finance Circular will be issued in due course with revised allocations, and at that point SPICe may re-issue a note on the revised allocations. FUNDING METHOD The method for funding local authorities is described in detail in a SPICe briefing paper for the Local Government and Regeneration Committee, issued in March 2014 (Berthier 2014). PROVISIONAL REVENUE ALLOCATIONS The provisional revenue allocations for to local authorities are set out in Annex C of Circular 7/2015, and reproduced in the annex to this briefing. However, there are a number of funds still to be distributed for To make a like for like comparison with , these funds need to be removed from allocations. These like for like allocations are set out in figures 3, 4 and 5 below and in table 6 in the Annex. 10

11 Provisional revenue allocations real terms change Figure 3 revenue allocations real terms change to , % -6.2% -5.9% -5.5% -5.5% -5.4% -5.3% -5.2% -5.2% -5.2% -5.2% -5.2% -5.1% -5.1% -5.1% -5.0% -5.0% -5.0% -4.9% -4.8% -4.7% -4.4% -4.3% -4.2% -4.2% -4.2% -4.2% -4.1% -4.1% -4.0% -3.4% -3.3% -3.0% -2.6% Shetland Eilean Siar Dundee City Orkney Dumfries & Galloway North Lanarkshire Argyll & Bute East Ayrshire Glasgow City Highland Inverclyde Angus Falkirk South Lanarkshire Clackmannanshire South Ayrshire West Dunbartonshire North Ayrshire Edinburgh, City of Scotland Renfrewshire Scottish Borders Aberdeen City Moray Perth & Kinross Stirling Fife Midlothian East Lothian East Renfrewshire East Dunbartonshire West Lothian Aberdeenshire 11

12 Figure 4: provisional revenue allocations real terms change to , % (map) Revenue Allocation Real Change % Between -5.1% and -6.2% Between -4.7% and -5.1% Between -4.0% and -4.7% Between -2.6% and -4.0% 12

13 Figure 5: provisional revenue allocations real terms change to , m Glasgow City Edinburgh, City of North Lanarkshire South Lanarkshire Fife Highland Dundee City Dumfries & Galloway Falkirk Aberdeen City Renfrewshire North Ayrshire East Ayrshire Aberdeenshire Argyll & Bute Perth & Kinross Angus South Ayrshire West Dunbartonshire West Lothian Scottish Borders Inverclyde Stirling East Lothian Moray Midlothian East Renfrewshire East Dunbartonshire Eilean Siar Shetland Clackmannanshire Orkney 13

14 Provisional revenue allocations per head Figures 6 and 7 below show the provisional revenue allocations per head, and the per head allocations as a percentage of the Scottish average. Figure 6 revenue allocations per head and as % of Scottish average Eilean Siar Shetland Orkney Argyll & Bute Inverclyde West Dunbartonshire Glasgow City North Ayrshire Dundee City East Renfrewshire Highland Dumfries & Galloway Clackmannanshire East Ayrshire Scotland North Lanarkshire Stirling Scottish Borders South Ayrshire Midlothian South Lanarkshire Renfrewshire Falkirk West Lothian East Dunbartonshire Angus Fife Moray East Lothian Perth & Kinross Aberdeenshire Edinburgh, City of Aberdeen City 3,565 3,536 3,125 2,232 2,032 2,031 2,017 1,939 1,906 1,894 1,874 1,869 1,810 1,805 1,773 1,772 1,771 1,769 1,745 1,738 1,731 1,724 1,716 1,705 1,700 1,686 1,682 1,636 1,630 1,624 1,562 1,444 1, % 114.6% 114.5% 113.7% 109.4% 107.5% 106.8% 105.7% 105.4% 102.1% 101.8% 100.0% 99.9% 99.9% 99.8% 98.4% 98.0% 97.7% 97.3% 96.8% 96.2% 95.9% 95.1% 94.9% 92.3% 91.9% 91.6% 88.1% 81.4% 80.6% 176.3% 201.1% 199.5% 14

15 Figure 7: provisional revenue allocations per head as % of Scottish average (map) Revenue Allocation % of Scottish Average Between 80.6% and 90.0% Between 90.0% and 100.0% Between 100.0% and 176.3% Between and 201.1% Revenue calculations have included a minimum floor arrangement for a number of years to ensure a minimum guaranteed increase in revenue funding to every local authority in years where the overall general revenue funding increases and conversely a maximum level of decrease when the overall total declines. In addition to this, as part of the previous Spending Review in 2011, local government finance settlements included a mechanism to ensure that no local authority received less than 85% of the Scottish average in revenue support. 15

16 At the time of the previous spending review, this funding to Aberdeen City Council and Edinburgh City Council saw the revenue allocations per head rise to 85.5% of the Scottish average. But, this was before the removal of the police and fire funding (and functions) from local government. With the removal of police and fire funding from onwards, as Aberdeen and Edinburgh spent proportionally more on police and fire than other local authorities, those two local authorities slipped below the 85% funding floor. But, they still received the initial 85% allocation agreed in the 2011 spending review. For , there is still an 85% floor line in the Circular, which states that it has been calculated to meet the Scottish Government s commitment to ensure that no Local Authority receives less than 85% of the Scottish average in terms of revenue support at the time of the outcome of Spending Review As can be seen from Figure 6 above, even with the 85% floor money, both Aberdeen and Edinburgh s per head revenue allocation is below 85%, due to the reasons outlined above. PROVISIONAL CAPITAL ALLOCATIONS As noted in the earlier section of this Briefing on the Draft Budget, capital allocations for are complicated by a number of reprofiling and other changes, which make accurate year on year comparisons difficult. Figure 8 below shows the change from to in capital allocations on a like for like basis, in real terms. A full breakdown of the like for like figures, and the actual allocations for , are in Table 8 of the annexe. On this basis, all authorities receive a real terms increase, four of which with increases of 9% or greater. The reasons for this are not clear from the Circular. 16

17 Figure 8 provisional capital allocations, real terms change, % North Ayrshire North Lanarkshire Dundee City Angus Inverclyde Aberdeenshire Falkirk Edinburgh, City of Moray Total SPT Undistributed West Dunbartonshire Aberdeen City Shetland Glasgow City East Renfrewshire East Lothian Dumfries & Galloway Perth & Kinross Fife Stirling East Ayrshire Scottish Borders Orkney Eilean Siar South Ayrshire Midlothian East Dunbartonshire Argyll & Bute West Lothian South Lanarkshire Renfrewshire Clackmannanshire Highland 9.3% 6.8% 6.6% 5.4% 5.1% 5.0% 4.9% 4.6% 4.5% 4.5% 4.5% 4.5% 4.4% 4.3% 4.2% 4.2% 4.1% 4.1% 3.8% 3.8% 3.6% 3.4% 3.3% 3.3% 3.3% 3.2% 3.2% 3.2% 3.1% 3.0% 2.7% 2.7% 1.9% 0.6% 19.4% 17

18 ANNEX DETAILED TABLES Table 4 Capital budget adjustments itemised m Scottish Government Capital DEL (cash terms excluding CDEL Financial Transactions) 2, ,832.0 Local Government share 26.02% 26.02% Total settlement based on percentage share Add 20m extra for TMDF (Transfer of Management of Development Funding) 20.0 Add 30m extra for Children and Young Persons Act 30.0 Add 39m extra for Children and Young Persons Act 39.0 Add 5m extra for Shetland Islands Council Housing 5.0 LG Settlement value Less re-profiling Add re-profiling from SR Capital Settlement to be paid in financial year Of which: General Capital Grant Specific Grants Total (matches Draft Budget numbers)

19 Table 5 - historic local government settlements, compared to Scottish DEL+NDRI, since police and fire transfers Year Total LG Funding from SG ( m) Total LG Funding from SG ( m) real, prices LG funding - annual real change ( m) LG funding - annual real change (%) , , , , % , , % , , % to % Year SG Total DEL+NDRI ( m) SG Total DEL+NDRI ( m) real, prices SG DEL+NDRI - annual real change ( m) SG DEL + NDRI - annual real change (%) , , , , % , , % , , % to , % 19

20 Table 6 Provisional revenue allocations real terms change like for like Local Authority - like for like comparison adjusted (cash) adjusted (cash) Cash change Cash change % adjusted (real) Real change Real change % Aberdeen City % % Aberdeenshire % % Angus % % Argyll & Bute % % Clackmannanshire % % Dumfries & Galloway % % Dundee City % % East Ayrshire % % East Dunbartonshire % % East Lothian % % East Renfrewshire % % Edinburgh, City of % % Eilean Siar % % Falkirk % % Fife % % Glasgow City 1, , % 1, % Highland % % Inverclyde % % Midlothian % % Moray % % North Ayrshire % % North Lanarkshire % % Orkney % % Perth & Kinross % % 20

21 Local Authority - like for like comparison adjusted (cash) adjusted (cash) Cash change Cash change % adjusted (real) Real change Real change % Renfrewshire % % Scottish Borders % % Shetland % % South Ayrshire % % South Lanarkshire % % Stirling % % West Dunbartonshire % % West Lothian % % Scotland 9, , % 9, % Undistributed Teachers induction scheme Criminal Justice Social Work % % % % Gaelic Adjustments removed Discretionary Housing Payments % % Free School Meals % % Total revenue funding 9, , % 9, % 21

22 Table 7: Provisional revenue allocations per head Local authority actual 2015 midyear population Per head % of Scottish average Aberdeen City ,990 1, % Aberdeenshire ,500 1, % Angus ,660 1, % Argyll & Bute ,660 2, % Clackmannanshire ,190 1, % Dumfries & Galloway ,940 1, % Dundee City ,260 1, % East Ayrshire ,150 1, % East Dunbartonshire ,730 1, % East Lothian ,050 1, % East Renfrewshire ,380 1, % Edinburgh, City of ,680 1, % Eilean Siar ,250 3, % Falkirk ,640 1, % Fife ,260 1, % Glasgow City 1, ,650 2, % Highland ,100 1, % Inverclyde ,860 2, % Midlothian ,210 1, % Moray ,750 1, % North Ayrshire ,450 1, % North Lanarkshire ,950 1, % Orkney ,590 3, % Perth & Kinross ,880 1, % Renfrewshire ,230 1, % 22

23 Local authority actual 2015 midyear population Per head % of Scottish average Scottish Borders ,030 1, % Shetland ,230 3, % South Ayrshire ,510 1, % South Lanarkshire ,360 1, % Stirling ,580 1, % West Dunbartonshire ,730 2, % West Lothian ,150 1, % Scotland 9, ,347, , % 23

24 Table 8 Provisional capital allocations Local Authority - like for like comparison - capital settlement adjust ed (cash) adjust ed (cash) Cash chang e Cash chang e % (real) Real chang e Real chang e % actual Aberdeen City % % 18.5 Aberdeenshire % % 22.9 Angus % % 10.0 Argyll & Bute % % 10.4 Clackmannans hire Dumfries & Galloway % % % % 15.7 Dundee City % % 14.3 East Ayrshire % % 8.2 East Dunbartonshir e % % 7.5 East Lothian % % 8.3 East Renfrewshire Edinburgh, City of % % % % 68.6 Eilean Siar % % 6.6 Falkirk % % 10.6 Fife % % 27.2 Glasgow City % % Highland % % 25.0 Inverclyde % % 6.5 Midlothian % % 7.4 Moray % %

25 Local Authority - like for like comparison - capital settlement adjust ed (cash) adjust ed (cash) Cash chang e Cash chang e % (real) Real chang e Real chang e % actual North Ayrshire % % 12.0 North Lanarkshire % % 26.6 Orkney % % 5.3 Perth & Kinross % % 13.0 Renfrewshire % % 12.6 Scottish Borders % % 11.3 Shetland % % 5.5 South Ayrshire % % 9.0 South Lanarkshire % % 23.2 Stirling % % 7.9 West Dunbartonshir e % % 7.1 West Lothian % % 12.1 Undistributed % % 35.6 SPT % % 16.0 Total % %

26 SOURCES Berthier, A. (2014) Local Government Revenue Funding Allocations. Edinburgh: Scottish Parliament. Available at: 0Papers/ Papers.pdf [Accessed 11 January 2016] BBC News. (2016) Council funding deadline is extended for more talks. Available at: [Accessed 21 January 2016] Campbell, A. (2014) Local Government Finance: facts and figures, Edinburgh: Scottish Parliament. Available at: [Accessed 11 January 2016] Commission on Local Tax Reform (2015) Just Change: A New Approach to Local Taxation. Edinburgh: Commission on Local Tax Reform. Available at: [Accessed 11 January 2016] Scottish Government (2015a) Local Government Finance Circular No. 7/2015. Edinburgh: Scottish Government. Available at: [Accessed 11 January 2016] Scottish Government (2015b) Scottish Local Government Financial Statistics Edinburgh: Scottish Government. Available at: [Accessed 11 January 2016] Scottish Government. (2015c) Scotland s Spending Plans and Draft Budget Edinburgh: Scottish Government. Available at: [Accessed 11 January 2016] Scottish Government (2016) Personal communication [unpublished] 26

27 THIS PAGE IS INTENTIONALLY BLANK 27

28 RELATED BRIEFINGS SB Local Government Finance: facts and figures, SB Local Government Funding: Draft Budget and provisional allocations to local authorities SB Scottish Government Draft Budget Financial Scrutiny online resources including spreadsheets, briefings and interactive budget and tax tools Scottish Parliament Information Centre (SPICe) Briefings are compiled for the benefit of the Members of the Parliament and their personal staff. Authors are available to discuss the contents of these papers with MSPs and their staff who should contact Allan Campbell on extension or Members of the public or external organisations may comment on this briefing by ing us at However, researchers are unable to enter into personal discussion in relation to SPICe Briefing Papers. If you have any general questions about the work of the Parliament you can the Parliament s Public Information Service at sp.info@scottish.parliament.uk. Every effort is made to ensure that the information contained in SPICe briefings is correct at the time of publication. Readers should be aware however that briefings are not necessarily updated or otherwise amended to reflect subsequent changes. Published by the Scottish Parliament Information Centre (SPICe), The Scottish Parliament, Edinburgh, EH99 1SP 28

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