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Local Government Finance

Map of Scotland

Local authorities allocated budget from the Scottish Government is provisionally agreed for a three year settlement at each Spending Review to provide more certainty and stability for local authorities as a result of knowing their individual revenue and capital allocations for three years. This is then agreed each February in preparation for the new financial year. Final agreement of their allocations happens each March after local authorities have set their council tax levels for the year ahead.

This part of the website explains the funding streams and support available to local authorities for:

Revenue Support to Local Authorities

The Scottish Government provides a block grant to local authorities which amounts to around 85% of their net revenue expenditure, with the remainder funded largely from local taxation. This section provides information on this process.

Capital Support to Local Authorities

This section provides information on Local Authority capital expenditure and how it is financed.

Business/ Non-Domestic Rates

Information on non-domestic (business) rates and discounts available, including the Small Business Bonus and Rates Deferral Schemes.

Council Tax

Information on Council Tax policy, including changes effective from April 2017, the Council Tax Reduction Scheme and various discounts and reliefs.

Local Authorities Accounting and Reporting

The Local Government in Scotland Act 2003, makes it the duty of a local authority to observe proper accounting practices. This section provides details of what these practices are.

Local Authority Investments

This section provides information on the statutory arrangements for the investment of money by a local authority.