The main sources of public funding for local children's services are provided through block grants from the Scottish Executive to local authorities and NHS Health Boards. Local authorities can also raise income for local services through the council tax.
Total spending on children's services has increased significantly in recent years. For example, between 1996-97 and 2001-02 local authority expenditure on social work services for children, including community-based social work services and residential care, increased by £100m (45%) to £325m, and on education services, including primary and secondary schools, but also special education, pre-school and childcare services, increased by £600m (25%) to £3 billion. (Information from Local Finance Returns 1996-97 and 2001-02).
Included within the block grant to local authorities, the Scottish Executive provides targeted resources for specific priorities, including Sure Start Scotland funding for families of very young children in areas of greatest need and Childcare Strategy resources to expand universal childcare services. The Scottish Budget 2003-06 has provided for Sure Start Scotland funding to increase from £23m in 2003-04 to £50m in 2005-06 and Childcare Strategy funding to increase from £19m to £41m over the same period.
Outwith the main block grant, the Scottish Executive also provides funding through the Changing Children's Services Fund (CCSF) to help local agencies re-configure and enhance their services for children. Resources through the CCSF will total £65.5m in each year 2006-07 and 2007-08. The CCSF was established as a catalyst for change, to help local partners improve the effectiveness and integration of mainstream children's services rather than to set up discrete projects. The spending review document, Building a Better Scotland, announced Ministers' intention to realign the £65 million annual CCSF budget towards supporting ongoing frontline delivery of improved children's services through transfers into local authority Grant Aided Expenditure of £15 million in 2006-07 rising to £35 million in 2007-08. The balance of the Fund for these years will continue to be paid as revenue grant to local authorities. Revised guidance on the fund issued on 22 November 2005 under cover of a letter setting the guidance in context.
Local authorities and their local partners should set out their total available resources, and their funding priorities within their local integrated Children's Services Plan. Local authorities can either provide services directly or purchase them from private or voluntary sector providers or from other local authorities.