The Scottish Government

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Extra £70 million for councils

27/03/2008

Parliament today approved an extra £70 million for councils across Scotland.

The distribution of the money is the final stage in securing the council tax freeze and ensures councils have extra money - the equivalent of a 3.2 per cent rise in council tax - to invest in services.

Cabinet Secretary for Finance and Sustainable Growth John Swinney said:

"People across Scotland will benefit from the extra £70 million investment in councils approved by Parliament today.

"Each council has already decided to either freeze - or in the case of Stirling - cut council tax, providing much needed relief for householders at a time of rising food and fuel bills.

"This order means each local authority will now have extra money which equates to a 3.2 per cent rise in council tax income.

"That is money they can use to provide the high quality frontline services people in their area deserve.

"It is money that comes as part of the record investment this government has already made in local government - a 13.1 per cent increase over the next three years.

"Add to that the reduction in the costly and time consuming bureaucracy of ring fencing and our decision to allow councils to retain all their efficiency savings for the first time and the result is a better deal for people across Scotland.

"We will now look to further entrench our new, more productive relationship with local government. That means finalising Single Outcome Agreements for each local authority and moving towards delivering a further freeze in the unfair council tax - both in 2009-10 and 2010-11.

"But the council tax freeze is just our first step in cutting the tax burden for people across Scotland. As set out in the consultation recently published, we are now moving towards abolishing the council tax altogether and introducing a fairer system based on ability to pay."

The allocation of the £70 million was based on each local authority's share of the total 2007-08 budgeted council tax income and includes budgeted income of council tax from second homes.

Each local authority's share of the £70 million is set out in the table below: