By Vivienne Russell
11 February 2011
The Local Government Finance Settlement in Scotland was confirmed yesterday, with councils set to receive more than £11bn next year if they agree to a funding deal.
All Scotland’s 32 councils have provisionally accepted the terms of the deal, which requires them to freeze council tax, maintain police numbers and meet some major education and social care commitments. In return, their funding reductions will be limited to an average of 2.5%.
Councils have until the end of February to decide whether to formally accept the funding package. If they do, they will receive revenue funding worth a total of £10.9bn. A further £426.6m will be released to allow councils to fund a fourth consecutive council tax freeze.
Those that do not sign up to the deal will face an average budget reduction of 6.4%.
Finance Secretary John 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 that 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.’
The provisional settlement was announced in December.
