Funding of local government 2021 to 2022: process overview

Overview of the process to determine the local government finance settlement for 2021 to 2022. The figures used are set out in Finance Circular 5/2021, as agreed by Parliament. The publication relates to general funding, and excludes any additional COVID-19 funding provided over the last year.

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

For 2021-22, councils will receive £13.1 billion of general funding. So, considering just this general funding:

1. We calculated each council's fair share of the £13.1 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)

General Funding of councils in 2021-22 - £13.1 billion

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



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