Local Authorities Revenue Block Grant Funding
The Scottish Government provides Scotland's 32 Local Authorities with the vast majority of their funding by means of a block grant. As part of the joint service delivery relationship between the Scottish Government and local authorities established under the Concordatagreement, on 14 November 2007, and updated as part of the agreement reached on the 2010 Spending Review (details of the summary funding allocations to individual councils announced on 9 December 2010 are provided in the attached table) to provide councils more control over their budget and the management of their services. This was achieved by the development of the Single Outcome Agreements based on local needs and priorities.
These priorities are a combination of local authorities statutory obligations and the jointly agreed set of national and local priorities including the Scottish Government's key strategic objectives and manifesto commitments. It is the responsibility of each local authority to allocate the total financial resources available to them to achieve the agreed outcomes.
Under the Concordat, agreed with local authorities, councils also have more freedom and flexibility particularly as we have reduced ring fenced funding streams and for the first time we have allowed councils to keep their own efficiency savings to re-invest in services. The Scottish Government will therefore monitor performance to make sure that our shared national priorities are achieved.
The Scottish Government is committed to working with local authorities to develop a stronger and more productive relationship between central and local government to deliver real benefits for the people of Scotland.
Police and Fire - proposed changes to the funding of both police and fire pensions
A change in funding arrangements for police and fire pension costs has been agreed by COSLA and the Scottish Government. Under the new arrangements, grant payments from the Scottish Government will be by means of a direct grant, rather than through the Local Government Settlement.
Further legislation, for both police and fire, will be required to set up and maintain the new pensions accounts. This will be prepared during 2010.