Details of how £11.6 billion of funding from the Scottish Government will be distributed to individual local authorities in 2021-22 have been published.
The settlement provides councils with an increase in day to day revenue spending of £335.6 million, including £90 million to compensate local authorities which choose to freeze council tax and a further £259 million will be added in one-off funding to support ongoing COVID-19 pressures.
In total, councils will receive additional revenue funding of almost £600 million to support vital local government services in 2021-22.
The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.
Finance Secretary Kate Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core.
“The local government settlement will help to fund those vital public services that are much valued and needed.
“It includes additional funding of £59 million to complete the expansion of early learning and childcare to 1,140 hours a year, £72.6 million for investment in health and social care and £7.7 million to support the inter-island ferries in Shetland, Orkney and Argyll and Bute.
“Just as we have chosen not to increase tax rates, ensuring people pay no more than last year, I have taken the significant step of offering funding equivalent to a council tax increase of around 3% to councils who choose to freeze council tax. I look to local government to join with me in providing the much needed financial reassurance to those who are struggling.
“We need to focus on how we rebuild and renew our country, and the funding I am providing to local authorities reflects the key role that they will continue to play in that journey.”
LOCAL GOVERNMENT FINANCE 2021-22: TOTAL REVENUE SUPPORT
| Local Authority | 2020-21 | 2021-22 | Change | Change. |
| £m | £m | £m | % | |
| Aberdeen City | 364.6 | 376.0 | 11.4 | 3.1 |
| Aberdeenshire | 460.2 | 479.2 | 19.0 | 4.1 |
| Angus | 220.2 | 226.9 | 6.7 | 3.1 |
| Argyll & Bute | 208.8 | 213.3 | 4.6 | 2.2 |
| Clackmannanshire | 103.0 | 105.7 | 2.7 | 2.6 |
| Dumfries & Galloway | 306.8 | 314.6 | 7.9 | 2.6 |
| Dundee City | 320.1 | 327.7 | 7.7 | 2.4 |
| East Ayrshire | 249.9 | 256.9 | 7.0 | 2.8 |
| East Dunbartonshire | 202.1 | 208.0 | 5.9 | 2.9 |
| East Lothian | 189.2 | 194.7 | 5.5 | 2.9 |
| East Renfrewshire | 191.3 | 196.1 | 4.8 | 2.5 |
| Edinburgh, City of | 799.6 | 831.9 | 32.3 | 4.0 |
| Eilean Siar | 99.8 | 101.6 | 1.8 | 1.8 |
| Falkirk | 308.2 | 315.7 | 7.5 | 2.4 |
| Fife | 702.4 | 725.3 | 22.9 | 3.3 |
| Glasgow City | 1,333.1 | 1,362.9 | 29.8 | 2.2 |
| Highland | 493.0 | 506.3 | 13.3 | 2.7 |
| Inverclyde | 177.6 | 181.9 | 4.3 | 2.4 |
| Midlothian | 178.9 | 183.7 | 4.8 | 2.7 |
| Moray | 173.6 | 180.2 | 6.6 | 3.8 |
| North Ayrshire | 296.7 | 303.9 | 7.2 | 2.4 |
| North Lanarkshire | 673.1 | 691.2 | 18.1 | 2.7 |
| Orkney Islands | 78.2 | 82.7 | 4.5 | 5.7 |
| Perth & Kinross | 271.0 | 281.3 | 10.3 | 3.8 |
| Renfrewshire | 341.9 | 351.2 | 9.3 | 2.7 |
| Scottish Borders | 224.0 | 233.2 | 9.2 | 4.1 |
| Shetland Islands | 90.0 | 97.3 | 7.3 | 8.1 |
| South Ayrshire | 217.4 | 223.7 | 6.3 | 2.9 |
| South Lanarkshire | 610.4 | 625.8 | 15.5 | 2.5 |
| Stirling | 183.5 | 188.7 | 5.2 | 2.9 |
| West Dunbartonshire | 203.0 | 207.4 | 4.4 | 2.2 |
| West Lothian | 344.5 | 353.3 | 8.8 | 2.6 |
| Undistributed | 51.9 | 75.1 | 23.2 | 44.8 |
| SCOTLAND | 10,667.8 | 11,003.4 | 335.6 | 3.1 |
Speaking after last week’s Budget announcement, COSLA’s Resources Spokesperson, Councillor Gail Macgregor, said: “Given the context this year, perhaps it is not overly surprising that the Budget is very much a mixed bag for Local Government –the main issue is that the overall allocation adds very little into our core financial settlement which has been eroded over the years.
“The Cabinet Secretary, in her speech, recognised Councils’ role as deliverers of vital services and yes on the face of it there is more money but that is predominantly for Government priorities.
“The addition of £259 million flexible funding for 2021/22 will help councils address Covid related costs next year, including providing the support that the most vulnerable in our communities will require but we need solid assurances that if this figure falls short, as is expected, that further funding will be forthcoming.
“To deal with pressures this year, the announcement of an additional £110 million to help compensate Councils for loss of income, which when added to the money we have already had, makes £200 million, is to be welcomed.
“However, for many councils this won’t be enough – income loss will leave a very large hole in their finances for years to come. We welcome that the Cabinet Secretary for Finance has listened to Leaders requests for further funding to cover loss of income but there is still work to do where there is a shortfall.
“We welcome elements of today’s announcement but overall this budget falls short of what we would consider a fair settlement for Local Government. We would anticipate further constructive discussions with the Cabinet Secretary in the next few weeks.”
