Meeting of the Parliament 28 February 2024
In his eagerness to make an intervention, the member might not have heard me. We have baselined almost £1 billion into the local government funding settlement as part of the Verity house agreement, and we are committed to taking that forward across a range of areas, some of which the Deputy First Minister set out yesterday.
As we do every year, to reach the number that we have presented today, we have compared budget with budget, because that provides the best like-for-like comparison of available funding. Adopting any other approach would be to mislead Parliament.
It is important to note that the total funding package has already been finalised following the passing of the Budget (Scotland) (No 3) Bill. Today’s debate is about seeking Parliament’s approval for the distribution of the approved total funding to individual local authorities. The motion seeks approval for the distribution and payment of almost £12.8 billion of the revenue total of almost £13.3 billion, with the balance being made up mainly of specific grant funding, which is administered separately.
The £12.8 billion is a combination of the general revenue grant of more than £9.7 billion and the distributable amount of non-domestic rates income, which has been set at almost £3.1 billion. There remains a further £201 million of revenue funding, plus the funding of the council tax freeze, which will be notified to local authorities once the distribution has been discussed and agreed with the Convention of Scottish Local Authorities. That will be included for approval in the 2025 order. There is also specific revenue funding amounting to more than £263 million, which is paid directly by the relevant policy areas under separate legislation.
The 2024 order also seeks approval for more than £403 million of changes to funding allocations for 2023-24. The full list of changes can be found in the report on the 2024 order.
The Government recognises the financial challenges that local authorities across Scotland and the whole public sector are facing. The fiscal constraints that we share emphasise the need for us to focus urgently on improving the delivery of public services and on designing them around the needs and interests of the people and communities of Scotland. We must also continue to press the UK Government for additional funding for our shared priorities and pressures, and I would welcome support from across the Parliament for that.
The Budget (Scotland) (No 3) Bill, which Parliament passed yesterday, ensured that total funding from the Scottish Government to local government next year increased in cash terms and in real terms. The order confirms the distribution to individual councils, and the proposals reflect the crucial role that local authorities and their employees continue to play in our communities.
I move,
That the Parliament agrees that the Local Government Finance (Scotland) Order 2024 [draft] be approved.
14:58