Publication - Statistics

Scottish Local Government Financial Statistics 2009-10

Published: 24 Feb 2011
ISBN:
ISBN97817804

Scottish Local Government Financial Statistics 2009-10

Scottish Local Government Financial Statistics 2009-10
2 LOCAL GOVERNMENT INCOME - WHERE THE MONEY COMES FROM

2 LOCAL GOVERNMENT INCOME - WHERE THE MONEY COMES FROM

KEY SUMMARY FACTS

  • Total Revenue income in 2009-10 was £17.9 billion.
  • Total Capital income in 2009-10 was £1.1 billion.
  • Council Tax income was £1.9 billion.
  • There were 2,377,474 Council Tax chargeable dwellings in September 2010.
  • The Scotland average Council Tax band D level was £1,149 in 2009-10.
  • Distributable Non-domestic rate income in 2009-10 was £2.2 billion.
  • There were 213,311 properties on the Valuation Roll at 1 April 2010 with a total rateable value of £6,612 million.
  • Total capital grants in 2009-10 were £875 million.
  • Total capital receipts in 2009-10 were £229 million.
  • General Revenue Funding ( GRF) income in 2009-10 was £7.8 billion.
  • Total Revenue Funding ( TRF) in 2009-10 was £10.8 billion.

The main sources of Local Government income are 1:

  • Grants from the Scottish Government consisting of Revenue Grants and Capital Grants
  • Local Taxes consisting of Council Tax and Non-domestic Rates
  • Sales, Fees and Charges
  • Other Revenue Income
  • Capital Receipts from asset sales
  • Other Capital Income
  • Investment Income

Table 2.1 - Summary of Local Government Income by Source

£ Million

2005-06

2006-07

2007-08

2008-09

2009-10

Revenue Income

Revenue Grants 1

8,862

9,284

9,834

10,377

10,845

Council Tax 2

1,720

1,812

1,890

1,909

1,910

Non Domestic rates

1,897

1,884

1,860

1,963

2,165

Sales, Rents, Fees & Charges

1,959

2,047

2,132

2,262

2,287

Other income 3,4

1,153

1,001

883

770

676

Total revenue income

15,591

16,027

16,599

17,281

17,883

Capital Income

Capital Receipts

366

451

514

230

229

Government Grants

210

520

707

595

760

Other Grants and Contributions

72

93

142

155

115

Other Income

3

2

.

.

.

Total capital income

651

1,066

1,362

979

1,105

TOTAL INCOME

16,242

17,094

17,961

18,260

18,988

1. Includes Council Tax Benefit ( CTB)
2. Excludes CTB
3. See section 2.5 for more detail on what is contained under other revenue income.
4. No longer includes Superannuation Fund income. For this figure, see Table 5.3.

Chart 2.1 - Summary of income by source, 2009-10

Chart 2.1 - Summary of income by source, 2009-10

2.1 Revenue Grants

The main sources of revenue income for local government are General Revenue Funding, formerly referred to as the Revenue Support Grant, and Ring-fenced Revenue Grants, formerly referred to as Specific Grants. Together with non-domestic rates income, these sources of income constitute Total Revenue Funding ( TRF), formerly referred to as Aggregate External Finance.

General Revenue Funding ( GRF) is paid by the Scottish Government in support of local authorities' general net revenue expenditure. It is the residual element after non-domestic rates income and ring-fenced revenue grants have been deducted from TRF. Unlike ring-fenced revenue grants, no conditions are imposed on how the money is spent.

Ring-fenced revenue grants are made to local authorities for a specific named purpose, or with the intention of achieving a specific policy objective. The relevant policy division of the Scottish Government allocates each local authority's share of ring-fenced revenue grants.

The total amounts of ring-fenced revenue grants within TRF are determined in advance as part of the local authority finance settlement. As well as the ring-fenced revenue grants which form part of TRF, local authorities can receive other grants in addition to TRF. These grants are demand led and generally do not have an established means of distribution that can be applied in advance. Table 2.2 below shows a breakdown of the Revenue Grants received by local authorities and their growth over time.

Table 2.2 - Revenue Grants

£ thousands

2005-06

2006-07

2007-08

2008-09

2009-10

General Revenue Funding 1

5,567,902

5,777,204

6,169,645

7,425,884

7,756,689

Ring-fenced Revenue Grants 2

756,874

888,171

869,938

723,776

757,818

Council Tax Benefit Subsidy

354,067

359,159

354,030

351,165

368,381

Other Grants and Subsidies 3

2,183,263

2,259,326

2,440,774

1,875,863

1,962,249

Total Revenue Grants

8,862,106

9,283,860

9,834,387

10,376,688

10,845,137

1. Prior to 2008-09 this was Revenue Support Grant
2. Prior to 2008-09 this was Specific Grants
3. Decrease in 2008-09 due to rolling up of previously ring-fenced grants

In the 2008-09 local government finance revenue settlement, many formerly ring-fenced revenue grants were rolled up into GRF. A few examples 2 of these rolled up grants include the Supporting People Grant, the Strategic Waste Fund and the National Priorities Action Fund. These formerly ring-fenced grants would have been recorded as either Ring-fenced Revenue Grants or Other Grants and Subsidies for the financial years up to and including 2007-08. From 2008-09, the rolled up grants have been recorded as part of GRF. As a result of this change to grant distribution and recording, the level of GRF is showing a much larger than usual increase from 2007-08 to 2008-09, while both Ring-fenced Revenue Grants and Other Grants and Subsidies are showing corresponding decreases in their level of funding from 2007-08 to 2008-09.

2.2 Council Tax

Council Tax was introduced in Scotland on the 1 st April 1993 to replace the Community Charge system. It is a tax system based on dwellings. A dwelling is classified as any kind of flat or house that is used as a place of residence. Each dwelling is placed into one of the 8 council tax bands (A to H) depending on the market value of the dwelling as at the 1 st April 1991. Table 2.3 details the band boundaries, the ratio to band D council tax (the multiplier) and the number of chargeable dwellings in each band by local authority.

Table 2.3 - Chargeable Dwellings 1 by Council Tax Band & Local Authority (as at 6 September 2010)

Band A

Band B

Band C

Band D

Band E

Band F

Band G

Band H

Total

Valuation band ranges

Under 27,000

27,001 to 35,000

35,001 to 45,000

45,001 to 58,000

58,001 to 80,000

80,001 to 106,000

106,001 to 212,000

Over 212,000

Ratio to band D

6/9

7/9

8/9

1

11/9

13/9

15/9

18/9

Scotland

517,443

567,337

378,367

305,885

312,142

173,300

111,230

11,770

2,377,474

Aberdeen City

19,517

25,873

16,655

11,784

13,048

7,751

6,926

789

102,343

Aberdeenshire

19,589

15,334

13,400

16,135

19,431

14,015

8,481

514

106,899

Angus

14,417

12,202

6,687

7,794

6,940

2,817

1,472

144

52,473

Argyll & Bute

7,305

9,353

8,712

5,713

6,920

3,880

2,631

208

44,722

Clackmannanshire

6,065

6,973

1,906

2,384

3,080

1,744

788

41

22,981

Dumfries & Galloway

10,705

22,029

11,218

9,319

9,891

4,645

2,252

154

70,213

Dundee City

25,275

15,361

7,799

7,969

6,163

2,165

977

33

65,742

East Ayrshire

25,657

9,189

4,652

6,211

5,795

2,732

828

41

55,105

East Dunbartonshire

1,130

3,539

7,928

6,986

10,711

6,588

5,843

536

43,261

East Lothian

1,127

8,818

14,053

5,395

5,588

4,333

3,487

595

43,396

East Renfrewshire

1,212

4,992

3,803

6,060

7,854

5,843

5,734

670

36,168

Edinburgh, City of

20,166

42,806

39,509

33,112

34,819

22,012

19,350

3,458

215,232

Eilean Siar

4,482

3,569

2,667

1,622

1,041

154

31

4

13,570

Falkirk

21,456

18,758

6,317

8,095

8,027

4,711

2,117

59

69,540

Fife

39,050

46,632

20,596

18,308

21,109

11,786

5,718

367

163,566

Glasgow City

62,373

73,713

60,254

36,004

25,179

11,189

5,745

604

275,061

Highland

18,638

22,021

21,360

16,884

16,652

8,045

3,813

307

107,720

Inverclyde

19,233

5,228

3,100

3,120

3,308

1,754

1,358

202

37,303

Midlothian

948

11,834

9,954

4,158

4,019

2,373

1,624

155

35,065

Moray

11,318

9,873

5,870

5,541

4,997

1,776

545

51

39,971

North Ayrshire

21,293

17,880

6,350

6,308

8,477

3,380

1,140

50

64,878

North Lanarkshire

52,475

36,204

18,110

14,776

14,668

6,905

2,415

118

145,671

Orkney Islands

2,312

2,632

2,038

1,555

1,090

224

18

3

9,872

Perth & Kinross

8,509

14,161

10,976

9,787

10,867

6,757

5,238

618

66,913

Renfrewshire

12,354

25,018

13,064

10,657

9,920

5,522

3,197

180

79,912

Scottish Borders

15,745

12,189

6,305

5,453

5,915

4,244

3,822

410

54,083

Shetland Islands

2,893

1,726

2,550

1,645

1,176

216

54

0

10,260

South Ayrshire

6,972

12,229

8,362

7,964

9,255

4,504

2,868

259

52,413

South Lanarkshire

34,975

28,617

23,945

18,353

17,581

9,943

5,300

389

139,103

Stirling

5,459

8,147

3,918

4,030

5,780

4,820

4,547

618

37,319

West Dunbartonshire

7,683

16,584

7,212

5,446

4,095

1,517

564

41

43,142

West Lothian

17,110

23,853

9,097

7,317

8,746

4,955

2,347

152

73,577

1. Excludes dwellings exempt from council tax

Each local authority determines its own level of council tax as part of their budget setting process, and is responsible for its billing and collection. Council tax is used as a source of funding to make up the difference between the amount of money a local authority wishes to spend, and the amount of funding it receives from other sources (such as GRF and ring-fenced revenue grants). The Scotland band D council tax level, and its change over time, can be seen in table 2.4.

Table 2.4 - Scotland Council Tax Levels

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Scotland Average Band D Council Tax (£) 1

1,094

1,129

1,149

1,149

1,149

1,149

Band D % increase (cash terms)

3.9

3.2

1.8

0.0

0.0

0.0

Band D % increase (real terms 2)

1.8

0.5

-1.2

-3.2

-1.5

-2.2

Average Council Tax Bill per Dwelling (£) 3

925

958

980

983

987

985

1. In 2010-11, Council Tax rates were frozen in all local authorities at 2007-08 levels.
2. Real terms figures are calculated using GDP deflators
3. This average is taken over all chargeable dwellings and is affected by a number of factors such as the distribution of dwellings across council tax bands, discounts and exemptions.

Each individual bill is calculated by applying the multiplier for each band (see table 2.3) to the band D level, (and then any discounts are applied). Therefore, bills vary according to council tax band, but also by Local Authority as shown in Map 2.1. The changes in Band D council tax levels by local authority over time are shown in table 2.5.

Table 2.5 - Band D Council Tax by Local Authority (£)

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Scotland

1,094

1,129

1,149

1,149

1,149

1,149

Aberdeen City

1,162

1,196

1,230

1,230

1,230

1,230

Aberdeenshire

1,065

1,113

1,141

1,141

1,141

1,141

Angus

1,037

1,072

1,072

1,072

1,072

1,072

Argyll & Bute

1,117

1,156

1,178

1,178

1,178

1,178

Clackmannanshire

1,074

1,127

1,148

1,148

1,148

1,148

Dumfries & Galloway

988

1,018

1,049

1,049

1,049

1,049

Dundee City

1,180

1,211

1,211

1,211

1,211

1,211

East Ayrshire

1,116

1,171

1,189

1,189

1,189

1,189

East Dunbartonshire

1,078

1,121

1,142

1,142

1,142

1,142

East Lothian

1,069

1,096

1,118

1,118

1,118

1,118

East Renfrewshire

1,053

1,105

1,126

1,126

1,126

1,126

Edinburgh, City of

1,126

1,152

1,169

1,169

1,169

1,169

Eilean Siar

956

999

1,024

1,024

1,024

1,024

Falkirk

999

1,045

1,070

1,070

1,070

1,070

Fife

1,050

1,091

1,118

1,118

1,118

1,118

Glasgow City

1,213

1,213

1,213

1,213

1,213

1,213

Highland

1,086

1,135

1,163

1,163

1,163

1,163

Inverclyde

1,176

1,206

1,198

1,198

1,198

1,198

Midlothian

1,176

1,210

1,210

1,210

1,210

1,210

Moray

1,045

1,096

1,135

1,135

1,135

1,135

North Ayrshire

1,075

1,125

1,152

1,152

1,152

1,152

North Lanarkshire

1,041

1,077

1,098

1,098

1,098

1,098

Orkney Islands

973

1,007

1,037

1,037

1,037

1,037

Perth & Kinross

1,088

1,136

1,158

1,158

1,158

1,158

Renfrewshire

1,091

1,143

1,165

1,165

1,165

1,165

Scottish Borders

1,019

1,064

1,084

1,084

1,084

1,084

Shetland Islands

981

1,017

1,053

1,053

1,053

1,053

South Ayrshire

1,063

1,111

1,154

1,154

1,154

1,154

South Lanarkshire

1,040

1,076

1,101

1,101

1,101

1,101

Stirling

1,149

1,201

1,223

1,209

1,209

1,209

West Dunbartonshire

1,113

1,138

1,163

1,163

1,163

1,163

West Lothian

1,074

1,101

1,128

1,128

1,128

1,128

Map 2.1 Band D Council Tax bill amount per local authority, 2009-10

Map 2.1

Not all dwellings are liable to pay full council tax. A dwelling may be eligible for a discount or exemption dependent on the personal circumstances of the persons resident in the dwelling. If a dwelling is exempt there is no council tax payable in respect of that dwelling. If a dwelling is eligible for a discount then the discount may range from 10% to 50% depending on the nature of the discount.

An exempt dwelling can be occupied or unoccupied. Examples of unoccupied exempt dwellings include dwellings that are unoccupied and unfurnished for up to 6 months, dwellings that cannot be occupied because they are in need of structural repair, or are being improved or reconstructed, or an unoccupied dwelling where the liable person was formerly resident and has moved to receive personal care elsewhere. Occupied dwellings eligible for exemption include dwellings that are the sole residence of only persons under the age of 18, dwellings occupied only by students, and dwellings used as trial flats by registered housing associations.

Where only one council tax liable adult resides in a dwelling they are entitled to claim a 25% discount on their council tax bill. Where a dwelling is classed as a second home or long term empty, that dwelling is entitled to claim a discount of between 10% and 50% depending on the Local Authority. Unoccupied dwellings may also be eligible for a 50% discount for the 6 months after the initial 6 month exemption.

A breakdown of council tax dwellings by classification as chargeable, discounted, or exempt from 2006 to 2010 is given below in table 2.6.

Table 2.6 - Chargeable dwellings, Discounts and Exemptions 1

2006

2007

2008

2009

2010

Total dwellings

2,417,759

2,442,284

2,462,571

2,477,397

2,488,928

Dwellings exempt

103,105

106,394

112,838

112,168

111,454

Chargeable dwellings

2,314,654

2,335,890

2,349,733

2,365,229

2,377,474

Chargeable dwellings subject to:

25% discount

918,199

929,326

929,246

936,957

941,915

Second Homes 2

36,167

35,057

35,036

37,060

38,002

Long Term Empty 2

16,656

20,328

22,784

22,169

24,598

Occupied entirely by disregarded adults

4,283

3,394

1,986

2,668

1,887

Dwellings not subject to discount

1,339,349

1,347,785

1,360,681

1,366,375

1,371,072

1. As at the first Monday in September of each year
2. It is not possible for some councils to separately identify second homes and long term empty dwellings. For these councils, the total number of second homes and long term empty dwellings have been recorded under second homes.

At the start of each financial year local authorities issue council tax bills to households liable for each bill. Local authorities collect council tax income relating to these bills, and also continue to collect late amounts from previous billing years 3. At the end of the financial year each local authority reports the amount of council tax it has collected to the Scottish Government. The amounts of council tax income collected in-year for 2009-10 (relating to that billing year) are reported in table 2.7 below.

Table 2.7 - Council Tax Income by Local Authority, 2009-10

£ thousands

Council Tax Income (excl CTB)1

Council Tax Benefit Subsidy ( CTB)

Council Tax Income (incl CTB) 1

Scotland

1,909,627

368,381

2,278,008

Aberdeen City

94,361

11,020

105,381

Aberdeenshire

108,239

8,490

116,729

Angus

39,588

5,809

45,397

Argyll & Bute

40,191

5,836

46,027

Clackmannanshire

17,789

3,602

21,391

Dumfries & Galloway

52,566

8,971

61,537

Dundee City

45,404

13,158

58,562

East Ayrshire

37,537

10,057

47,594

East Dunbartonshire

47,603

4,945

52,548

East Lothian

39,531

5,560

45,091

East Renfrewshire

39,909

4,008

43,917

Edinburgh, City of

197,448

29,950

227,398

Eilean Siar

8,335

1,833

10,168

Falkirk

50,695

8,668

59,363

Fife

128,394

22,396

150,790

Glasgow City

178,739

72,590

251,329

Highland

94,275

13,158

107,433

Inverclyde

25,867

7,188

33,055

Midlothian

31,861

5,139

37,000

Moray

33,065

4,055

37,120

North Ayrshire

45,547

11,675

57,222

North Lanarkshire

95,634

26,252

121,886

Orkney Islands

6,748

888

7,636

Perth & Kinross

64,245

6,763

71,008

Renfrewshire

62,024

13,412

75,436

Scottish Borders

43,159

5,757

48,916

Shetland Islands

7,705

775

8,480

South Ayrshire

44,037

8,744

52,781

South Lanarkshire

104,730

22,645

127,375

Stirling

38,861

4,824

43,685

West Dunbartonshire

28,691

10,019

38,710

West Lothian

56,849

10,194

67,043

1- Includes Community Charge

2.3 Non-Domestic Rates

The principles of Non-domestic Rates ( NDR) were established in the Lands Valuation (Scotland) Act of 1854. This Act also provided for the appointment of Assessors, who are responsible for determining the classification of a property as domestic or non-domestic and assigning a valuation. A non-domestic property is an individual property used for non-domestic purposes. They can include businesses, public buildings and advertising hoardings. The value given to a property is called its rateable value. Assessors list each property on the Valuation Roll with its corresponding rateable value that is used to calculate its NDR bill. Tables 2.8 and 2.9 show the composition of the properties on the Valuation Roll by Classification, Local Authority and Valuation band.

Business rate revaluations normally take place every five years. The most recent revaluation came into effect on 1 April 2010. The purpose of revaluation is to ensure that the tax burden is distributed fairly by taking account of changes over time in market conditions and individual business circumstances. At each revaluation, the Scottish Assessors, who are independent of both the Scottish Government and local authorities, assess a rateable value for each non-domestic (business) property in Scotland by taking account of the type and nature of the property in question. The next revaluation is scheduled to take effect on 1 April 2015.

Table 2.8 - Non-Domestic Rates Properties by Classification (as at 1 April 2010)

CATEGORY

Number of properties

Rateable value (£000s)

1 st April 2010

1 st April 2010

Advertising

1,973

8,399

Care Facilities

3,199

102,476

Communications

389

15,303

Cultural

1,362

41,298

Education and Training

3,938

496,220

Garages and Petrol Stations

4,456

66,184

Health and Medical

3,109

191,821

Hotels

4,580

179,631

Industrial Subjects

45,112

1,106,609

Leisure, Entertainment, Caravans etc.

18,506

225,872

Offices

36,648

1,110,188

Other

12,774

85,074

Petrochemical

145

112,707

Public Houses

4,021

117,322

Public Service Subjects

10,117

310,328

Quarries, Mines, etc.

705

24,187

Religious

6,304

53,305

Shops

52,670

1,586,233

Sporting Subjects

2,753

17,948

Statutory Undertaking

550

761,381

TOTAL ALL NON-DOMESTIC PROPERTIES

213,311

6,612,485

Table 2.9 - Non-Domestic Rates Properties by Local Authority (as at 1 April 2010) 1

Local Authority

Rateable Value Band

Total Non-Domestic Properties

<= £18,000

£18,001 to £34,999

>= £35,000

Scotland

164,514

19,911

28,886

213,311

Aberdeen City

4,879

1,143

2,248

8,270

Aberdeenshire

9,127

751

919

10,797

Angus

4,057

365

392

4,814

Argyll & Bute

6,900

339

352

7,591

Clackmannanshire

1,256

137

148

1,541

Dumfries & Galloway

7,820

496

538

8,854

Dundee City

4,052

619

997

5,668

East Ayrshire

3,043

323

399

3,765

East Dunbartonshire

1,643

302

306

2,251

East Lothian

2,659

264

323

3,246

East Renfrewshire

1,203

209

226

1,638

Edinburgh, City of

12,401

2,436

3,943

18,780

Eilean Siar

1,921

99

112

2,132

Falkirk

3,549

482

688

4,719

Fife

9,866

1,212

1,619

12,697

Glasgow City

17,190

2,928

4,817

24,935

Highland

14,377

956

1,345

16,678

Inverclyde

1,747

222

311

2,280

Midlothian

2,118

249

357

2,724

Moray

3,814

248

355

4,417

North Ayrshire

3,943

389

501

4,833

North Lanarkshire

6,379

1,034

1,550

8,963

Orkney Islands

1,767

116

93

1,976

Perth & Kinross

6,783

576

719

8,078

Renfrewshire

4,451

621

958

6,030

Scottish Borders

6,099

408

412

6,919

Shetland Islands

1,662

97

143

1,902

South Ayrshire

3,539

450

552

4,541

South Lanarkshire

6,741

1,135

1,476

9,352

Stirling

3,838

437

563

4,838

West Dunbartonshire

2,015

273

416

2,704

West Lothian

3,675

595

1,108

5,378

1- Includes properties with zero rateable value.

NDR bills are calculated by multiplying the rateable value of a property by the poundage rate. The Scottish Government sets the rate poundage, which applies to the whole of Scotland. In 2006-07, Scottish Ministers committed to the equalisation of the Scottish poundage rate with that of England, and in 2007-08 this was achieved. The annual NDR Income, total Rateable Value, and Poundage Rate, as well as their changes over time, are shown in table 2.10. Due to the 2010 revaluation, the total Rateable Value of Non-domestic properties (the tax base) increased from £5.3 billion in 2009-10 to £6.6 billion in 2010-11, however, the overall impact on Non-Domestic rate bills will be zero over the 5 year revaluation cycle as the poundage reduction must be taken into account when calculating bills. Additionally, exempt properties (which do not pay rates), along with the impact of appeals and relief schemes such as the Small Business Bonus Scheme, will also significantly reduce the amount paid in bills.

The cumulative Rateable Value for the Valuation Roll at the end of the 2009-10 financial year and NDR Income for 2009-10 and 2010-11 per Local Authority are given in Table 2.11.

Table 2.10 - Non-Domestic Rates Income, Total Rateable Values and Poundage Rates

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Non Domestic Rates Income (£m) 1

1,933

1,933

1,921

1,933

2,015

2,164

Total Rateable Value (£m)

5,063

5,186

5,239

5,296

5,299

6,612

Poundage Rate (pence)

46.1

44.9

44.1

45.8

48.1

40.7

1. Mid-year estimate of income for 2010-11

Table 2.11 - Non-Domestic Rates Properties, Rateable Values and Income By Local Authority 1,2

Authority

Non-Domestic Properties
April 2010

Non-Domestic Rateable Values 3
April 2010

Non-Domestic Rate income

2009-10

2010-11 4

(£000s)

(£000s)

(£000s)

Scotland

213,311

6,612,485

2,014,616

2,163,520

Aberdeen City

8,270

447,608

140,067

160,062

Aberdeenshire

10,797

199,422

57,783

68,088

Angus

4,814

76,634

21,669

23,192

Argyll & Bute

7,591

83,526

25,247

25,365

Clackmannanshire

1,541

37,952

10,832

12,179

Dumfries & Galloway

8,854

109,668

35,919

38,162

Dundee City

5,668

196,483

59,922

60,796

East Ayrshire

3,765

80,838

25,160

25,104

East Dunbartonshire

2,251

63,848

19,845

20,174

East Lothian

3,246

63,805

18,000

19,155

East Renfrewshire

1,638

37,962

11,862

11,875

Edinburgh, City of

18,780

905,787

291,893

294,923

Eilean Siar

2,132

20,434

5,432

5,932

Falkirk

4,719

167,778

55,589

55,048

Fife

12,697

425,498

120,602

133,862

Glasgow City

24,935

976,977

303,582

300,579

Highland

16,678

286,273

82,810

94,565

Inverclyde

2,280

56,831

18,497

18,542

Midlothian

2,724

73,308

21,138

23,057

Moray

4,417

82,994

24,692

26,824

North Ayrshire

4,833

105,518

30,604

32,802

North Lanarkshire

8,963

291,886

97,989

95,939

Orkney Islands

1,976

24,166

6,757

7,656

Perth & Kinross

8,078

144,196

44,559

44,901

Renfrewshire

6,030

243,497

74,155

84,515

Scottish Borders

6,919

85,098

22,593

23,745

Shetland Islands

1,902

43,066

12,206

14,187

South Ayrshire

4,541

107,661

33,639

34,540

South Lanarkshire

9,352

681,990

176,793

241,911

Stirling

4,838

113,142

36,379

31,621

West Dunbartonshire

2,704

171,009

59,646

65,419

West Lothian

5,378

207,632

68,758

68,798

1. The most recent business rates revaluation came into effect on 1st April 2010
2. A number of individual councils collect certain rates bills on hehalf of all 32 councils. For example, Fife collects rates for Scottish Water, South Lanarkshire for Electricity Companies and Renfrewshire for Telecoms.
3. Includes those with a zero rateable value.
4. Mid-year estimate.

The figures presented in Table 2.11 are shown net of reliefs. Relief 4 arrangements apply to properties including, but not exhaustively, qualifying village stores, post offices, petrol stations and public houses/hotels, stud farms, empty properties, properties owned by charities and premises used for religious worship. From 1 April 2008, the Small Business Rates Relief Scheme ( SBRRS) was replaced by the Small Business Bonus Scheme ( SBBS), both of which targeted properties with rateable values on the lower end of the spectrum. The cost of the SBBS scheme is much greater than that of the former SBRRS, resulting in a larger than usual increase in the gross amount of reliefs awarded from 2007-08 to 2008-09. In 2009-10 the mandatory element of reliefs for Sports Clubs were collected separately from the discretionary element for the first time. Table 2.12 shows the amounts of the main reliefs received from 2005-06 to 2009-10.

Table 2.12 - Non-Domestic Rates Reliefs By Relief Type

£ thousands

2005-06

2006-07

2007-08

2008-09

2009-10 1

Mandatory

Unoccupied Property/Partly Unoccupied Property

131,112

130,155

119,957

127,385

153,361

Charities

90,998

93,423

97,361

102,475

110,264

Sports Clubs 2

..

..

..

..

2,279

Disabled persons relief

40,668

40,079

40,040

42,914

45,484

SBRRS/ SBBS3

24,052

24,321

24,686

72,553

108,435

Religious Properties

18,668

18,439

18,146

18,986

20,218

Rural Rate Relief

945

927

924

936

960

Former Agricultural Premises 4

10

12

14

.

.

Discretionary

Charities & other organisations

9,095

9,428

10,405

10,943

12,007

Sports Clubs

9,473

9,309

9,173

9,651

9,325

Rural Rate relief

2,952

2,964

2,977

2,952

2,958

Backdated relief for Sports Clubs & Charities

26

181

38

101

45

Hardship

192

3

20

27

19

Former Agricultural Premises 4

3

4

5

.

.

Stud Farms

-

-

-

-

-

Gross Amount

328,196

329,244

323,746

388,921

465,356

1. Provisional notified General Revenue Funding ( GRF) is guaranteed this means that any reduction in the amount of NDR collected is compensated for by a corresponding increase in GRF and vice versa.

The calculation of the distributable amount for 2009-10 is given in Annex D. The 2009-10 distributable amount per Local Authority is shown in table 2.13.

Table 2.13 - Non-Domestic Rates Distributable Amount By Local Authority, 2009-10

£ Thousands

Non-Domestic Rate Income

Scotland

2,165,100

Aberdeen City

88,074

Aberdeenshire

100,659

Angus

46,242

Argyll & Bute

38,448

Clackmannanshire

21,002

Dumfries & Galloway

62,417

Dundee City

59,828

East Ayrshire

50,325

East Dunbartonshire

44,129

East Lothian

39,748

East Renfrewshire

37,568

Edinburgh, City of

197,002

Eilean Siar

11,069

Falkirk

63,435

Fife

151,728

Glasgow City

244,927

Highland

91,517

Inverclyde

34,125

Midlothian

33,464

Moray

36,562

North Ayrshire

57,139

North Lanarkshire

136,652

Orkney

8,359

Perth & Kinross

59,824

Renfrewshire

71,382

Scottish Borders

46,899

Shetland

9,238

South Ayrshire

47,008

South Lanarkshire

130,263

Stirling

37,118

West Dunbartonshire

38,338

West Lothian

70,611

estimate of relief expenditure for 2009-10
2. The mandatory element of Sports Club relief was not collected separately prior to 2009-10
3. From 1 April 2008, the Small Business Rates Relief Scheme was replaced with the Small Business Bonus Scheme.
4. Relief for Former Agricultural Premises was a time limited relief which ended at 31 March 2008

NDR income is collected by Local Authorities and pooled at the Scotland level. Each council, having collected its taxes, reports the Non-Domestic Rates collected to the Scottish Government to be included in the central pool. The amount to be re-distributed from the pool is known as the Distributable Amount ( DA) and is set by the Scottish Government before the start of the financial year in question and redistributed to individual local authorities on the basis of population shares. It is based upon a forecast of the NDR income and prior year adjustments, and is therefore not guaranteed to match the total contributions to the pool for that year.

The DA forms part of the Total Revenue Funding ( TRF), which represents the Government's revenue funding for core local government services. As the combined total of NDR income and

Source: Finance Circular 6/2009, available at: http://www.scotland.gov.uk/Topics/Government/local-government/17999/11203

2.4 Sales, Rents, Fees and Charges

Local Authorities receive income from sales, rents, fees and charges as a result of providing services. These services are wide ranging in nature, as is the amount of income associated with each service, as detailed in Table 2.14 below.

Table 2.14 - Sales, Rents, Fees and Charges

£ thousand

2005-06

2006-07

2007-08

2008-09

2009-10

Education

87,716

84,863

93,253

85,691

87,115

Cultural & Related Services

77,415

76,337

81,421

78,621

85,516

Social Work

214,605

232,588

256,018

259,061

246,014

Police, Fire & Emergency Planning

59,933

49,878

55,564

88,557

93,043

Roads & Transport

112,201

143,723

145,226

146,605

165,941

Environmental Services

91,282

98,951

117,585

117,873

123,164

Planning & Economic Development

136,196

144,215

141,791

112,644

120,146

Non- HRA Housing

97,889

123,072

124,893

232,028

189,150

Central Services

98,098

101,932

130,075

141,455

144,819

Trading Services

55,928

55,488

56,544

70,810

66,992

Total GF Sales, Rents, Fees and Charges

1,031,263

1,111,047

1,202,370

1,333,345

1,321,900

HRA

904,509

911,946

909,126

920,146

955,710

Common Good Fund

7,719

7,892

7,342

8,324

9,073

Road Bridges

15,543

16,224

13,618

162

133

Total Sales, Rents, Fees and Charges

1,959,034

2,047,109

2,132,456

2,261,977

2,286,816

2.5 Other Revenue Income

Other revenue income consists of all other grants, reimbursements and contributions, some income from interest on revenue balances, and increases in revenue balances. All other grants, reimbursements and contributions consists of revenue income received to finance a project/function jointly undertaken with other non-government bodies and the value of the costs recharged to outside bodies (including other committees). Table 2.15 below details other income by fund or reserve.

Table 2.15 - Other Income, 2009-10

£ thousands

2009-10

Other Grants, reimbursements and contributions

638,270

General Fund

618,877

Housing Revenue Account

5,942

Common Good

396

Road Bridges

13,055

Interest and Investment Income

35,619

General Fund

30,358

Housing Revenue Account

1,878

Common Good

3,296

Road Bridges

87

Increases in Revenue Balances

2,332

Total

676,221

2.6 Capital Grants

Capital grants consist of Scottish Government capital grants and other capital grants and contributions. From the 2008-09 financial year, Scottish Government capital grants have been broken down into three components, the Scottish Government General Capital Grant, Scottish Government Specific Capital Grants and Grants from Scottish Government Agencies and Non-departmental Public Bodies ( NDPBs). Other grants and contributions include grants from other local authorities, European Structural Funds, contributions from private developers or persons, and grants from the National Lottery. Table 2.16 details capital grants by source, and type of local authority.

Table 2.16 - Capital Grants income 2009-10 1,2

£ thousands

Scotland

Unitary Authorities

Police Boards

Fire Boards

Regional Transport Partnerships

Bridge Authorities

Scottish Government General Capital Grant

448,496

446,252

2,244

-

-

-

Scottish Government Specific Capital Grants

155,704

103,086

3,277

22,675

26,666

-

Grants from Scottish Government Agencies and NDPBs

156,098

145,828

379

-

-

9,891

Grants from other Local Authorities/Joint Boards

24,615

4,392

19,768

-

455

-

European Union Structural Funds

1,088

1,088

-

-

-

-

Contributions from private developers or persons

28,881

28,859

-

22

-

-

Grants from the National Lottery

12,964

12,964

-

-

-

-

Other grants/ contributions

47,560

46,490

418

652

-

-

Total Grants

875,406

788,959

26,086

23,349

27,121

9,891

1. These figures are those reported by local authorities in their 2009-10 Final Capital Return. The figures in this table may not therefore necessarily agree with the breakdown of capital grants detailed in Finance Circular 9/2010.
2. Figures include Housing Revenue Account

2.7 Capital Receipts

Capital receipts are capital income, normally generated by the sale or disposal of an asset. They may only be applied to capital expenditure or for the write down of capital debt.

Table 2.17 details capital receipts raised by service type from 2005-06 to 2009-10. As can be seen in the table, within General Fund services, the service area with the greatest amounts of capital receipts has consistently been Other Services. This trend is reflective of advice given to local authorities to manage surplus assets centrally, rather than in their original service portfolios, so that any sales of these surplus assets can be managed most effectively. A detailed breakdown of Capital Receipts by Service for 2009-10 can be found in Annex E.

Table 2.17 - Service Breakdown of Capital Receipts Raised

£ thousands

2005-06

2006-07

2007-08

2008-09

2009-10

Education

16,637

12,348

62,563

30,489

4,089

Culture & Related Services

6,536

3,260

12,697

2,594

2,243

Social Work

600

1,964

3,473

715

285

Police & Fire

4,877

4,644

4,112

4,908

3,709

Roads & Transport

8,357

5,407

5,849

1,928

742

Environmental Services

190

565

644

793

1,113

Planning & Economic Development

10,000

18,661

26,421

9,120

8,996

Trading Services

22

60

243

6

133

Other Services

85,143

178,906

168,348

43,557

142,394

Non- HRA Housing

274

262

454

211

602

Total General Fund Services

132,636

226,077

284,804

94,321

164,306

Housing Revenue Account

233,666

225,276

229,109

135,484

65,091

Total Services

366,302

451,353

513,913

229,805

229,397