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Revenue Funding

Local Authorities Revenue Block Grant Funding

The Scottish Government provides Scotland's 32 Local Authorities with the vast majority of their funding by means of a block grant. As part of the joint service delivery relationship between the Scottish Government and local authorities established under the Concordatagreement, on 14 November 2007, and updated as part of the agreement reached on the 2010 Spending Review and 2011 Spending Review to provide councils more control over their budget and the management of their services. 

These priorities are a combination of local authorities statutory obligations and the jointly agreed set of national and local priorities including the Scottish Government's key strategic objectives and manifesto commitments. It is the responsibility of each local authority to allocate the total financial resources available to them to achieve the agreed outcomes.


Under the Concordat, agreed with local authorities, councils also have more freedom and flexibility particularly as we have reduced ring fenced funding streams and for the first time we have allowed councils to keep their own efficiency savings to re-invest in services. The Scottish Government will therefore monitor performance to make sure that our shared national priorities are achieved.

The Scottish Government is committed to working with local authorities to develop a stronger and more productive relationship between central and local government to deliver real benefits for the people of Scotland.