09 February 2007
Scottish councils are to receive funding increases of up to 5.5% as part of a record settlement totalling £8.7bn for 2007/08.
Giving more details of the deal he published in December, Finance Minister Tom McCabe said on February 7 that the total increase of £396m would enable local authorities to improve services while keeping council tax increases down.
The minister's declaration came as town halls prepared to set their council tax levels for 2007/08 on February 8. They were expected to agree an average below-inflation rise — the lowest since the creation of the Scottish Parliament in 1999. The Scottish elections take place on May 3.
Scotland's biggest council, Labour-run Glasgow City, has already said it will freeze its council tax for the second year running.
McCabe gave detailed aggregate external finance figures, consisting of revenue support grant, specific grants and income from business rates, for all 32 Scottish councils.
The increases range from 3.7% for Western Isles Council to 5.5% for Clackmannanshire Council, giving an average of 4.8%.
Glasgow receives a 4.1% increase, bringing its total government-supported funding to almost £1.2bn, and Edinburgh a rise of 4.6% to £658.6m. Aberdeen's funding is up by 4.3% to £303.6m and Dundee's by 4.1% to £263.6m.
McCabe said the Executive would continue to look to councils to secure improvements in the quality of public services.
'It will help fund the services we all rely on, including our children's education, care for our elderly, the police and fire services and maintenance and improvements in our local roads.'
He added that authorities would have more than £17bn to spend on services — equivalent to more than £3,440 for every person in Scotland.
The deal was welcomed by the Convention of Scottish Local Authorities. It said it had been achieved as a result of negotiations that followed two years of under-funding.
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