Additional £500 million for education

8th September 2016

Legislation that will reform council tax and raise additional, targeted funding to improve Scotland's schools has been set out in Parliament today.

Cabinet Secretary for Finance, Derek Mackay, confirmed that the necessary legal instruments had been laid at Holyrood, paving the way for reforms due to take effect from April 2017.

An additional £500 million will be raised over the current Parliament with the funds distributed to head-teachers to invest in schools directly and improve education at a local level.

Mr Mackay said: "The reforms I have introduced today will not only protect household incomes and make local taxation fairer, they will also benefit thousands of young people throughout Scotland as set out in our Education Delivery Plan.

“Although there will be no change for three out of four Scottish households in terms of how much council tax they pay as a result of these reforms, schools across the country will notice the difference this significant investment will make.

“This Government has made it clear time and time again that improving the life chances of Scotland’s young people remains at the top of our priorities. Today we have taken further action to make this vision a reality. Closing the attainment gap and giving our children the best possible start in life will ensure a more prosperous nation and I am pleased these reforms will be able to play their part in realising this."

Local authorities are concerned that this breaks the usual controls over local taxes raised being used locally as Scottish government is directing how this part of council tax can be used. There may also be more administration for head teachers accounting for how the money is used in their school.