LOCAL GOVERNMENT FINANCE - REVENUE AND CAPITAL
GRANTS
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Finance and Central Services
Department
Local Government Finance &
Local Funding Division
Finance Circular No 5/2005
The Chief Executive, Convention of
Scottish Local Authorities
Chief Executives of Scottish Local
Authorities | Victoria Quay Edinburgh EH6 6QQ Telephone: 0131-244 7002 Fax: 0131-244 7020 Graham.Owenson@scotland.gsi.gov.uk http://www.scotland.gov.uk 12 May 2005 |
_____ _____
Dear Chief Executive
LOCAL GOVERNMENT FINANCE - REVENUE AND CAPITAL
GRANTS
1. This Circular provides details of the revenue and
capital grants which will be provided by the Scottish
Executive to local government over the next 3 years. It
represents an update of the information first provided in
Finance Circular No. 9/2004 dated 22 December 2004 and
gives details of all the grants which lie outwith the core
local government finance settlement.
2. The updated overall funding position as a result of
Spending Review 2004 is summarised in the table below.
| 2004-05 £m | 2005-06 £m | 2006-07 £m | 2007-08 £m | Cumulative % Increases |
Revenue Grant Outwith AEF from
Portfolios | 1,068 | 1,179 | 1,114 | 1,135 | 6.3% |
Capital Grants from Portfolios | 361 | 375 | 445 | 465 | 28.8% |
Supported Borrowing | 304 | 304 | 298 | 305 | 0.3% |
Total Excluding AEF | 1,733 | 1,858 | 1,857 | 1,905 | 9.9% |
AEF | 7,737 | 8,087 | 8,345 | 8,542 | 10.4% |
Total | 9,470 | 9,945 | 10,202 | 10,447 | 10.3% |
3. The AEF and Supported Borrowing totals and individual
allocations were first provided in Finance Circular No
8/2004 and updated in Finance Circular No 2/2005. The
information contained in this circular provides details of
the additional revenue and capital grant support provided
outwith the core settlement.
Revenue Grants
4. The table above shows that local government will
receive between £1.1 billion and £1.2 billion in revenue
grants outwith the core local government settlements in
each of the next three years in support of specific policy
initiatives.
5. A breakdown of all the funding streams that make up
these totals for 2005-06 to 2007-08 (2004-05 shown for
comparative purposes) is set out at Annex A.
Capital Grants
6. Certain services, which were formerly supported by
specific consent allocations, are now supported, together
with some new ones, by capital grants. Authorities are free
to supplement these grants with borrowing under the
prudential regime if they so wish.
7. The total level of confirmed support through capital
grants will be £375.165m for 2005-06, £445.085m for 2006-07
and £465.380m for 2007-08. The arrangements for local
authorities to receive these grants, as listed in Annex B,
have been, or will be, notified to authorities by each of
the relevant Scottish Executive divisions which administer
the grants.
8. The table at Annex B shows the capital grants for
2005-06 to 2007-08 (2004-05 shown for comparative
purposes).
9. Capital expenditure by authorities, the sources from
which it derives, and future forecasts of expenditure, will
continue to be monitored through the Capital Payment
Returns in order to feed into national data collection by
HM Treasury.
Contacts
10. A separate copy of this Circular has been sent by
e-mail to your Director of Finance and to Brenda Campbell
at COSLA.
11. Enquiries about individual grants should be
addressed in the first instance to the main contact point
listed in each of the two Annexes. General enquiries about
the local government finance settlement should be addressed
to the relevant person named in Finance Circulars No 8/2004
and 2/2005.
Yours sincerely
Graham Owenson
Graham Owenson
Local Government Finance and Local
Funding
REVENUE GRANTS OUTWITH CORE FUNDING ANNEX
A
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | Scottish Executive
Contact | |
| £m | £m | £m | £m | | |
Education | | | | | | |
Changing Children's Services
Fund [i] | 60.5 | 65 | 65 | 65 | Jim Stephen (0131 244
0977) | |
|
Teachers Induction
Scheme | 9.5 | 8.5 | 8.5 | 8.5 | John Gunstone (0131 244
0998) | |
|
Incentive Scheme | 0.5 | 0.7 | 1.2 | 1.1 | Maggie Tierney (0131 244
0661) | |
|
Schools Building PPP | 10 | 100 | 80 | 100 | Graeme Stuart (0131 244
0944) | |
Children's Hearings (Legal
Representation) (Scotland) Grant Scheme
[ii] | 0.13 | 0.2 | 0.3 | 0.3 | Gordon Watt (0131 244
3545) | |
Additional Funding for Foster
Care | 0 | 3 | 6 | 3 | Fiona McKinlay (0131 244
5410) | |
Child Protection Committee
Transitional Funding | 0.32 | 0.64 | 0 | 0 | Catherine Henderson ( 0131 244
4906) | |
Early Years and Children
Workforce Development Fund | 6 | 6 | 6 | 6 | Steven Bell (0131 244
7657) | |
Health and Community
Care | | | | | | |
Delayed
Discharges[iii] | 29.5 | 29 | 29 | 29 | Shaun Eales (0131 244
5430) | |
|
Enterprise and Lifelong
Learning | | | | | | |
Education Maintenance Allowance
(EMA)[iv] | 13 | 28.4 | 37.1 | 42.8 | Chris Graham (0141 242
0192) | |
|
European Regional Development
Fund (ERDF)[v] | 45.8 | 40.6 | 40.6 | 40.6 | Graeme Watson (0141 242
5479) | |
|
European Structural Funds
(ESF)[vi] | 18.6 | 16.6 | 16.6 | 16.6 | Graeme Watson (0141 242
5479) | |
|
Transport | | | | | | |
Bus Route Development
Grant | 0 | 9 | 7 | 7 | Tom Macdonald (0131 244
1502) | |
|
Rural Public Passenger Grant
Scheme | 5.8 | 6.1 | 6.3 | 6.4 | George Davidson (0131 244
0857) | |
|
Urban Community Transport
Initiative [vii] | 0.5 | 0.5 | 0 | 0 | George Davidson (0131 244
0857) | |
Demand Responsive Transport
Grant Scheme [viii] | 0.325 | 0.207 | 0 | 0 | George Davidson (0131 244
0857) | |
School Travel
Co-ordinators | 1 | 1 | 1.025 | 1.051 | Ewan Swaffield (0131 244
0839) | |
|
Concessionary Travel | 25 | 10 | 0 | 0 | Tom Macdonald (0131 244
1502) | |
|
Strathclyde Passenger Transport
Authority | 72.5 | 72.5 | 72.5 | 72.5 | Ian Turner (0161 244
5167) | |
Environment | | | | | | |
Strategic Waste Fund
[ix] | 80.512 | 92.668 | 61.942 | 53.032 | Gordon Jackson (0131 244
7660) | |
|
Communities | | | | | | |
Better Neighbourhood Services
Fund (from 05/06 see Community
Regeneration Fund) | 31.2 | 0 | 0 | 0 | Richard Rollison (0131 244
0366) | |
Social Inclusion Partnerships
(from 05/06 see Community Regeneration
Fund) | 68.7 | 0 | 0 | 0 | Richard Wallace/Jonathan
Atherton (0131 479 5246/5364) | |
Community Regeneration Fund (on
behalf of Community Planning
Partnership) | 0 | 104.448 | 106 | 107.272 | Richard Wallace/Jonathan
Atherton (0131 479 5246/5364) | |
Homelessness Task
Force | 20 | 20 | 20.505 | 21.01 | Pippa Goldschmidt (0131 244
0288) | |
Furniture Grants | 3 | 3 | 3 | 3 | Pippa Goldschmidt (0131 244
0288) | |
|
Glasgow Hostels
Decommissioning | 15 | 15 | 15 | 15 | Pippa Goldschmidt (0131 244
0288) | |
Supporting People | 428 | 407.52 | 399.189 | 400.691 | Norrie Murray (0131 244
0380) | |
|
Housing Support Grant | 10.152 | 10 | 7.5 | 7.5 | Helen Jones (0131 244
5570) | |
|
Justice | | | | | | |
Criminal Justice Social Work
[x] | 79.18 | 84.41 | 92.41 | 94.41 | Brian Cole(0131 244
5438) | |
Tackling ASB | 23.62 | 26.22 | 30.83 | 33.16 | Dawn Abell (0131 244
4990) | |
|
Enterprise and Lifelong
Learning | | | | | | |
Determined to Succeed
[xi] | 10 | 18 | tbc | tbc | Michael Cross (0141 242
0107) | |
|
Total Revenue Grants | 1068.339 | 1179.213 | 1113.501 | 1134.926 | | |
[i] Figures for 06-07 and 07-08 to be confirmed.
[ii] This grant is demand led so future years show total
allocations available.
[iii] The distribution method employed here means that
the grant is allocated through NHS Boards for use by local
authorities and NHS partners.
[iv] These sums will be paid to schools and further
education colleges.
[v] A budget review is currently being undertaken and it
is expected these figures will change dramatically.
[vi] A budget review is currently being undertaken and
it is expected these figures will change dramatically.
[vii] This is partly revenue, partly capital.
[viii] This is partly revenue partly capital.
[ix] This is partly revenue partly capital.
[x] This contains a small element of capital
funding.
[xi] Specific local authority allocations to be
announced and future years funding confirmed.
CAPITAL GRANTS ANNEX B
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | Scottish Executive
Contact | |
| £m | £m | £m | £m | | |
Police | 31.415 | 31.415 | 31.415 | 31.415 | Neil MacLennan (0131 244
2143) | |
|
Fire | 23.6 | 23.6 | 24.6 | 24.6 | John Nicholls (0131 244
2163) | |
|
Public Transport Fund and
Successor | 43 | 19 | 30 | 30 | Alasdair Robertson (0131 244
0849) | |
|
Strathclyde Passenger Transport
Executive [i] | 11 | 11 | 0 | 0 | Ian Kernohan (0131 244
0840) | |
Tay Bridge | 2.3 | 2.3 | 2.3 | 2.3 | Keith Main (0131 244
0361) | |
|
Forth Estuary Transport
Authority | 0 | 0 | 2 | 2 | Keith Main (0131 244
0361) | |
|
20 mph Speedzones and
Homezones | 11 | 11 | 11.3 | 11.6 | Ann Whatcott (0131 244
0837) | |
Piers & Harbours | 2 | 2 | 2 | 2 | Dave Mackay (0131 244
7243) | |
Regional Transport Capital
Funding | 0 | 0 | 46.6 | 46.3 | Ian Kernohan (0131 244
0840) | |
|
Cycling, Walking and Safer
Streets | 8.2 | 8.65 | 8.87 | 9.09 | Ewan Swaffield (0131 244
0839) | |
|
Flood Prevention and Coast
Protection | 14.2 | 14 | 33 | 42 | Judith Tracey (0131 244
0213) | |
Air Quality Monitoring | 0.3 | 0.3 | 0.3 | 0.3 | Andrew Taylor (0131 244
7813) | |
|
Contaminated Land
Grant | 15.72 | 5 | 5 | 10 | Bob Cuthbertson (0131 244
0394) | |
|
Private Sector Housing
Grant | 70 | 72 | 65.25 | 65.5 | Roger Harris (0131 244
7952) | |
|
Assistance to owners affected
by Glasgow stock transfer | 5 | 10 | 17 | 17 | Douglas Hamilton (0131 244 5588) | |
Vacant and Derelict Land
[ii] | 8 | 12 | 12.1 | 12.2 | Christina Bruce (0131 244
5595) | |
Schools Fund | 76.7 | 96.7 | 101.35 | 106.05 | Graeme Stuart (0131 244
0944) | |
|
Cities Growth Fund | 30 | 40 | 41 | 42.025 | Robin Benn (0131 244
4956) | |
|
Care Services Equipment and
Adaptations (one off payment)
[iii] | 0 | 5 | 0 | 0 | Shaun Eales (0131 244
5430) | |
|
Urban Regeneration
Companies | 8.8 | 11.2 | 11 | 11 | Ian Sirrell (0131 244
1537) | |
|
Total Capital Grants | 361.235 | 375.165 | 445.085 | 465.38 | | |
[i] Funding support for SPTE from 2006-07 has been
included within the Regional Transport Capital Funding in
anticipation of the proposed Regional Partnerships
statutory bodies being granted Parliamentary approval in
2006.
[ii] From 2005-06 this money is paid to Urban
Regeneration Companies which are separate legal entities
and therefore independent of local authorities.
[iii] Formula for distribution still to be decided.