Funding Of £12.5 Billion For Local Councils In Scotland

21st December 2021

Details have been published of how the £12.5 billion in Scottish Government funding for 2022/23 will be distributed to local authorities.

The settlement represents a total cash increase of £917.9 million or 7.9%, which is the equivalent of a real terms rise of 5.1% to support vital local government services.

It includes a real terms increase in day-to-day revenue funding of 4.9%, compared with the 2021/22 draft budget.

In addition, The Scottish Government has responded to requests by councils for more financial flexibility by enabling them to make their own local decisions on council tax.

Finance Secretary Kate Forbes said:"The 2022/23 Budget confirms that, even in the face of the economic uncertainty caused by the pandemic, we are providing councils with a real terms increase to their budgets for the coming year of more than 5%.

"Local authorities are key partners with government as we tackle the pandemic and protect our communities, businesses and public services. As we move forward, they will play an important leadership role in creating a greener, fairer and more prosperous Scotland.

"This settlement reflects that and includes protection to the core budget in cash terms, an extra £554 million for health and social care, £145 million for additional teachers and support staff and £94 million to support the expansion of free school meals.

"I have been clear that this Budget has required difficult choices. But I am determined that councils should be fairly funded within the limited resources we have available."

Highland will receive a 3.4 percent increase with an allocation of £523.6 million in 2022/2023 from £506.3 million in 2021/2022.

The Cabinet Secretary for Finance and Economy wrote to the COSLA President, copied to all Council Leaders on 9 December 2021, confirming the package of measures that make up the settlement to be provided to local government. This Circular should be read in conjunction with that letter. The terms of this settlement have been discussed with COSLA on behalf of all 32 of its member councils.

The Scottish Government will work in partnership with local government to implement the budget and the joint priorities in return for the full funding package worth over £12.5 billion and includes:

£174.5 million for continued delivery of the real Living Wage within Health and Social Care

£15 million for uprating of free personal and nursing care payments

£20.4 million for implementation of the Carers Act
additional investment of £124 million to provide care at home

£20 million to support Interim Care

an additional £200 million to support investment in health and social care

£145 million for Additional Teachers and Support Staff

maintained funding for 100 day commitments including the removal of curriculum and music tuition charges and expanded School Clothing Grant and
an additional £64 million revenue that was not identified on the face of the budget as well as the £30 million of capital funding already identified to facilitate the expansion of Free School Meals.