£10.4bn for local government

Scottish local authorities will receive a total funding package of £10.426 billion for 2017-18, Finance Secretary Derek Mackay said today.

The overall funding settlement and package of measures will enable local authorities to maintain, and increase, the pace of reform needed to improve the vital services on which the people of Scotland depend and value.

The 2017-18 funding package consists of:

  • The local government finance settlement, including an additional £160 million announced on 2 February and £120m to directly support schools to close the attainment gap
  • Other sources of support available through the actual and discretionary increases in council tax income; and
  • Support through Integration Authorities for Health and Social Care.

Together this package of funding provides local government with an overall potential increase in support for local services of over £400 million or 3.9%.

Local authorities have now finalised their own budgets, and as 11 councils chose not to increase their council tax levels by the maximum allowable (3%) the overall additional support for services in 2017-18 will amount to £383 million or 3.7%.

Derek Mackay said:

“My priority has been to deliver a financial settlement that councils can accept in order that we can pursue shared priorities which will improve outcomes for local people.

“This settlement supports the delivery of education in our schools and efforts to close the attainment gap, it supports local investment in roads and improving our infrastructure, backs community services and helps support social care services.

“Alongside additional funding for health and social care integration, including payment of the living wage, this Government has given local authorities a fair deal by providing a potential increase in services of more than £400 million.

“I welcome the acceptance of Scotland’s local authorities to this financial settlement, which is firmly focused on our joint priorities to deliver sustainable economic growth, protect front-line services such as education and social care, and continued support the most vulnerable in our society.”

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