WIREDGOV

The Scottish Government will provide councils with a total funding package next year worth over £11.5 billion, Finance Secretary John Swinney has confirmed.

The package will support local communities and economic recovery in the face of Westminster's £1.3 billion cut in Scotland's resources for next year.

Parliament yesterday agreed the main allocation of revenue funding to local government for 2011-12. Once all 32 councils have confirmed that they have set budgets which will deliver across all the terms of the package - including a further council tax freeze, key education and social care commitments and the maintenance of police numbers - a further Order will be brought before Parliament to distribute the remaining revenue grant to local government, giving a total revenue package of £10.9 billion. Councils have until the end of February to provide the confirmation required.

All 32 councils have provisionally accepted the terms of the package which, as a result of decisions announced in the Budget Act, will now limit local government's resource funding reduction next year to an average of 2.5 per cent. This gives councils greater protection than other parts of the Scottish Budget, and a far better outcome than local government in England. Councils which do not accept the terms would face an average resource budget reduction of 6.4 per cent.

The illustrative figures for budgets in the period up to 2014-15 which the Scottish Government announced on January 24 would maintain local government's share of a flat cash total, which is much better than many had assumed and also much better than the position for councils in England. The illustrative figures should provide a framework within which public sector organisations, and stakeholder groups across Scotland, can discuss options and consider the range of possibilities within which they can plan for the future.

Mr Swinney said:

"The funding package maintains councils' share of the Scottish Budget, despite the biggest reduction in public spending imposed on Scotland by any UK Government.

"We are delivering the best possible deal for local communities under challenging circumstances. Councils which accept the package will see an average funding reduction superior to that for local government in England, and receive greater protection than other parts of the Scottish Budget.

"In setting their own budgets, councils are of course having to make tough decisions. But I welcome the fact that all councils have already provisionally accepted the package on offer, which was discussed and agreed with COSLA's Leadership. It is now up to councils to indicate whether they formally accept its terms. This will pave the way for an extension of the council tax freeze, providing much needed support for families. It will maintain delivery of existing commitments on free personal care and respite care. It will maintain pupil-teacher ratios in P1-P3 and measures to reduce teacher unemployment. And it supports the continued delivery of 1,000 more police officers than were in post before this Government came to office."

The Scottish Government announced provisional allocations to local authorities for 2011-12 in December. Following agreement of the Budget Bill, today's Local Government Finance (Scotland) Order confirms the main allocation of revenue funding to local government. A second Order will be brought before Parliament next month to pay out a further £426.3 million - including resources enabling local authorities to freeze council tax for a fourth consecutive year - once councils have provided formal assurance that they accept the terms of the package agreed between the Scottish Government and COSLA's Leadership.

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