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About the P&I Team Briefings Home | Responses | PFI Index | Policy Guide
Local Government Finance Settlement Briefing No. 133
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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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