This item was published during the term of a previous administration that ended in April 2007
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Finance order for £7 billion settlement
06/02/2003
The Local Government Finance Order 2003 being discussed
in Parliament asks MSPs to approve an 8.5 percent increase
in revenue grant funding for local authorities next year,
totalling more than £7 billion.
The distribution formula, agreed with the Convention of
Scottish Local Authorities (COSLA), ensures that every
council will receive an increase in grant of between 6 and
11 percent next year, to support new initiatives and
existing services.
Finance and Public Services Minister Andy Kerr said:
"The Scottish Executive is committed to working in
partnership with local government to deliver better public
services for the people of Scotland. That is our shared
priority.
"The additional resources I have confirmed will help
deliver towards better education services, better services
for older people and those with disabilities, more support
for children and families and more investment in local
roads. They also underline our commitment to local
government.
"Whilst Councils will make their own budget decisions, I
also believe these resources mean Councils need not move
significantly from the indicative council tax increases
they announced previously, giving a fair deal for local
taxpayers."
It was announced in December provisional general grant
allocations for each local authority for the next three
years.
Today's Order seeks Parliament's approval for the
2003-04 allocations. The settlement includes full support
for key priority initiatives, allowance to maintain
existing services, including for councils' additional
National Insurance costs and £50m for local Quality of Life
initiatives.
Most councils will confirm their budgets and council tax
levels for next year (plus indicative levels for the
following two years) later this month. Over recent years
average council tax increases in Scotland have been lower
than in England.