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Local Government Finance - Revenue and Capital Grants

DescriptionDetails of the revenue and capital grants which will be provided by the Scottish Executive to local government over the next 3 years.
ISBN
Official Print Publication Date
Website Publication DateDecember 23, 2004

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    LOCAL GOVERNMENT FINANCE - REVENUE AND CAPITAL GRANTS

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    Scottish Executive
    Finance and Central Services DepartmentLocal Government Constitution & Funding Division

    Finance Circular No 9/2004
    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
    Andrew.Rushworth@scotland.gsi.gov.uk
    http://www.scotland.gov.uk

    22 December 2004

    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. Finance Circular No. 8/2004 provided details of the three-year local government finance settlements for core services for 2005-06 to 2007-08 and paragraph 4 of that circular explained that details of revenue and capital grants outwith the main settlement would be provided separately. The following information fulfils that commitment.

    2. The 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

    987

    1,093

    1,083

    1,122

    13.7%

    Capital Grants from Portfolios

    344

    359

    434

    454

    32.0%

    Supported Borrowing

    304

    304

    298

    305

    0.3%

    Total Excluding AEF

    1,635

    1,756

    1,815

    1,881

    15.0%

    AEF

    7,737

    8,081

    8,343

    8,541

    10.4%

    Total

    9,372

    9,837

    10,158

    10,422

    11.2%

    3. The AEF and Supported Borrowing totals and individual allocations were provided in Finance Circular No 8/2004 and 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 1.1 billion in revenue grants outwith the local government settlements in each of the next three years in support of specific policy initiatives. These grants have been provided in support of specific 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 358.965m for 2005-06, 434.085m for 2006-07 and 454.380m 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 Circular No 8/2004.

    Yours sincerely

    signature

    GRAHAM OWENSON
    Local Government Constitution and 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

    60.500

    65.000

    65.000 i

    65.000 ii

    Jim Stephen
    (0131 244 0977)

    Teachers Induction Scheme

    9.500

    8.500

    8.500

    8.500

    John Gunstone
    (0131 244 0998)

    Social Work Fast Track Graduate Recruitment Scheme

    2.500

    2.500

    1.000

    0

    Maggie Tierney
    (0131 244 0661)

    Incentive Scheme

    0.500

    1.200

    1.400

    1.400

    Maggie Tierney
    (0131 244 0661)

    Schools Building PPP

    10.000

    100.000

    80.000

    100.000

    Graeme Stuart
    (0131 244 0944)

    Health and Community Care

    Delayed Discharges iii

    29.700

    29.000

    29.000

    29.000

    Shaun Eales
    (0131 244 5430)

    Enterprise and Lifelong Learning

    Education Maintenance Allowance (EMA) iv

    13.000

    28.400

    37.100

    42.800

    Chris Graham
    (0141 242 0192)

    European Regional Development Fund (ERDF) v

    45.800

    40.600

    40.600

    40.600

    Graeme Watson
    (014124225479)

    European Structural Funds (ESF) vi

    18.600

    16.600

    16.600

    16.600

    Graeme Watson
    (014124225479)

    Transport

    Bus Route Development Grant

    2.500

    7.000

    6.500

    6.500

    Tom Macdonald
    (0131 244 1502)

    Rural Public Passenger Grant Scheme

    5.800

    6.100

    6.300

    6.400

    George Davidson
    (0131 244 7983)

    School Travel Co-ordinators

    1.000

    1.000

    1.025

    1.051

    Ewan Swaffield
    (0131 244 0839)

    Concessionary Travel

    13.000

    13.000

    13.000

    13.000

    Tom Macdonald
    (0131 244 1502)

    Strathclyde Passenger Transport Authority

    72.500

    72.500

    72.500

    72.500

    Ian Turner
    (0141 244 5167)

    Environment

    Strategic Waste Fund vii

    90.030

    111.530

    120.133

    132.633

    Gordon Jackson
    (0131 244 7660)

    Communities

    Better Neighbourhood Services Fund (from 05/06 see Community Regeneration Fund)

    31.200

    0

    0

    0

    Richard Rollison
    (0131 244 0366)

    Social Inclusion Partnerships (from 05/06 see Community Regeneration Fund)

    68.700

    0

    0

    0

    Richard Wallace/Jonathan Atherton
    (0131479 5246/5364)

    Community Regeneration Fund (on behalf of Community Planning Partnership)

    0

    104.448

    106.000

    107.272

    Richard Wallace/Jonathan Atherton
    (0131479 5246/5364)

    Vacant and Derelict Land Fund (re-classification from revenue to capital from 2005-06) viii

    8.000

    0

    0

    0

    Christina Bruce
    (0131 244 5595)

    Homelessness Task Force

    20.000

    20.000

    20.505

    21.010

    Lesley Sheppard
    (0131 244 7246)

    Furniture Grants

    3.000

    3.000

    3.000

    3.000

    Anna Donald
    (0131 244 0933)

    Glasgow Hostels Decommissioning

    15.000

    15.000

    15.000

    15.000

    Leslie Sheppard
    (0131 244 7246)

    Supporting People ix

    428.000

    406.000

    399.000

    399.000

    Norrie Murray
    (0131 244 0380)

    Housing Support Grant

    10.152

    9.000

    7.000

    7.000

    Helen Jones
    (0131 244 5570)

    Justice

    Tackling ASB

    27.550

    32.550

    33.650 x

    34.180 xi

    Patricia Scotland
    (0131 244 4918)

    Enterprise and Lifelong Learning

    Determined to Succeed - (Still to be announced - not included in totals)

    10.000

    18.000

    Michael Cross
    (0141 242 0107)

    Total Revenue Grants

    986.532

    1092.928

    1082.813

    1122.446

    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

    23.600

    23.600

    24.600

    24.600

    John Nicholls
    (0131 244 2163)

    Public Transport Fund and Successor

    43.000

    19.000

    30.000

    30.000

    Alasdair Robertson
    (0131 244 0849)

    Strathclyde Passenger Transport Executive xii

    11.000

    11.000

    0

    0

    Ian Kernohan
    (0131 244 0840)

    Tay Bridge

    2.300

    2.300

    2.300

    2.300

    Keith Main
    (0131 244 0361)

    Forth Estuary Transport Authority

    0

    0

    2.000

    2.000

    Keith Main
    (0131 244 0361)

    20 mph Speedzones and Homezones

    11.000

    11.000

    11.300

    11.600

    Ann Whatcott
    (0131 244 0837)

    Piers & Harbours

    2.000

    2.000

    2.000

    2.000

    Alan McPherson
    (0131 244 7969)

    Regional Transport Capital Funding

    0

    0

    46.600

    46.300

    Ian Kernohan
    (0131 244 0840)

    Cycling, Walking and Safer Streets

    8.200

    8.650

    8.870

    9.090

    Ewan Swaffield
    (0131 244 0839)

    Flood Prevention and Coast Protection

    14.200

    14.000

    33.000

    42.000

    Judith Tracey
    (0131 244 0213)

    Air Quality Monitoring

    0.300

    0.300

    0.300

    0.300

    Andrew Taylor
    (0131 244 7813)

    Land Decontamination

    15.720

    5.000

    5.000

    10.000

    Bob Cuthbertson
    (0131 244 0394)

    Private Sector Housing Grant

    70.000

    72.000

    65.250

    65.500

    Roger Harris
    (0131 244 7952)

    Assistance to owners affected by Glasgow stock transfer

    5.000

    10.000

    17.000

    17.000

    Douglas Hamilton
    (0131 244 5588)

    Vacant and Derelict Land (re-classification from revenue to capital from 2005-06)

    0

    12.000

    12.100

    12.200

    Christina Bruce
    (0131 244 5595)

    Schools Fund

    76.700

    96.700

    101.350

    106.050

    Graeme Stuart
    (0131 244 0944)

    Cities Growth Fund

    30.000

    40.000

    41.000

    42.025

    Robin Benn
    (0131 244 4956)

    Total Capital Grants

    344.435

    358.965

    434.085

    454.380

    EXPLANATORY NOTES

    i To be confirmed.

    ii To be confirmed.

    iii The distribution method employed here means that NHS boards are the main recipients of this grant rather than Local Authorities directly.

    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 The three Local Authorities (Dundee, Glasgow and North Lanarkshire) will be acting as grant recipients for the V+DL Fund. The money will be used to fund projects agreed by local partnerships involving the Local Authority, local enterprise company and Community Scotland.

    ix A marginal adjustment to the figures for Supporting People is expected to be announced shortly following representations by COSLA to the Minister for Communities.

    x Ministers still to agree split between direct Local Authority allocations and centrally funded initiatives.

    xi Ministers still to agree split between direct Local Authority allocations and centrally funded initiatives.

    xii 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.