Publication - Statistics

Local government funding 2020-2021: process overview

Overview of the process to determine the Local Government Finance Settlement for 2020 to 2021. The figures used are set out in Finance Circular 2/2020, which was agreed by Parliament prior to the COVID-19 pandemic, and so do not take account of additional COVID-19 funding.

16 page PDF

1.1 MB

16 page PDF

1.1 MB

Contents
Local government funding 2020-2021: process overview
How did we calculate how much Scottish Government grant each council should receive?

16 page PDF

1.1 MB

How did we calculate how much Scottish Government grant each council should receive?

For 2020-21, councils received £12.7 billion of general funding. So, considering just this general funding:

1. We calculated each council’s fair share of the £12.7 billion of available funding.

2. Then we subtracted how much income we estimate each will receive from Council Tax and Non-domestic Rates.

3. Then the remainder was given as grant, called General Revenue Grant.

So if a council’s fair share was £400 million, and they would receive £70 million from Council Tax and £90 million from Non-domestic Rates, then we gave £240 million as General Revenue Grant. (400 - 70 - 90 = 240)

Diagram illustrating that Total Allocation equals Grant plus Non-domestic Rates plus Council Tax

Contact

Email: gaestatistics@gov.scot