Publication - Statistics

Scottish Local Government Financial Statistics 2010-11

Published: 22 Feb 2012
ISBN:
9781780456492

A comprehensive overview of Local Authority financial activity

Scottish Local Government Financial Statistics 2010-11
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 2010-11 was £18.1 billion.
  • Total Capital income in 2010-11 was £0.793 billion.
  • Council Tax income was £1.92 billion.
  • There were 2,389,029 Council Tax chargeable dwellings in September 2011.
  • The Scotland average Council Tax band D level was £1,149 in 2010-11.
  • Distributable Non-domestic rate income in 2010-11 was £2.07 billion.
  • There were 215,969 properties on the Valuation Roll at 1 April 2011 with a total rateable value of £6.68 billion.
  • Total capital grants in 2010-11 were £651 million.
  • Total capital receipts in 2010-11 were £142 million.
  • General Revenue Funding (GRF) income in 2010-11 was £8.15 billion.
  • Total Revenue Funding (TRF) in 2010-11 was £11.1 billion.

The main sources of Local Government income are1:

  • 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, 2006-07 to 2010-11

£ Million
2006-07 2007-08 2008-09 2009-10 2010-11
Revenue Income
Revenue Grants1 9,284 9,834 10,379 10,849 11,082
Council Tax2 1,812 1,890 1,909 1,910 1,923
Non Domestic rates 1,884 1,860 1,963 2,165 2,068
Sales, Rents, Fees & Charges 2,047 2,132 2,262 2,287 2,179
Other income3,4 966 866 770 676 800
Total revenue income 15,992 16,582 17,283 17,886 18,052
Capital Income
Capital Receipts 451 514 230 229 142
Government Grants 520 707 595 760 548
Other Grants and Contributions 93 142 155 115 104
Other Income 2 - - - -
Total capital income 1,066 1,362 979 1,105 793

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, 2010-11

Chart 2.1 - Summary of income by source, 2010-11

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
2006-07 2007-08 2008-09 2009-10 2010-11
General Revenue Funding1 5,777,202 6,169,645 7,425,886 7,756,689 8,149,407
Ring-fenced Revenue Grants2 888,171 869,939 726,350 761,338 431,419
Council Tax Benefit Subsidy 359,159 354,030 351,165 368,381 375,142
Other Grants and Subsidies3 2,259,326 2,440,774 1,875,863 1,962,249 2,125,952
Total Revenue Grants 9,283,858 9,834,388 10,379,264 10,848,657 11,081,920

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 examples2 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 1st 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 1st 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 by Council Tax Band & Local Authority ( as at 5 September 2011)

Valuation band ranges Band A Band B Band C Band D Band E Band F Band G Band H Total
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 514,378 568,120 382,164 309,249 314,830 175,542 112,688 12,058 2,389,029
Aberdeen City 19,458 25,903 16,800 11,951 13,091 7,771 6,948 792 102,714
Aberdeenshire 19,625 15,296 13,517 16,253 19,695 14,262 8,705 531 107,884
Angus 14,440 12,245 6,715 7,881 6,997 2,851 1,485 148 52,762
Argyll & Bute 7,285 9,386 8,725 5,735 6,978 3,927 2,655 212 44,903
Clackmannanshire 6,080 7,022 1,915 2,392 3,088 1,762 798 41 23,098
Dumfries & Galloway 10,686 22,020 11,382 9,428 9,970 4,747 2,272 156 70,661
Dundee City 25,551 15,234 7,851 8,019 6,156 2,212 988 32 66,043
East Ayrshire 25,624 9,181 4,743 6,207 5,851 2,781 868 41 55,296
East Dunbartonshire 1,115 3,547 7,934 7,094 10,705 6,599 5,879 570 43,443
East Lothian 1,119 8,890 14,161 5,454 5,635 4,415 3,517 598 43,789
East Renfrewshire 1,175 5,003 3,867 6,155 7,885 5,839 5,779 682 36,385
Edinburgh, City of 20,285 43,026 39,599 33,191 35,063 22,095 19,515 3,566 216,340
Eilean Siar 4,500 3,604 2,689 1,637 1,090 160 33 4 13,717
Falkirk 21,508 18,756 6,341 8,134 8,085 4,813 2,186 60 69,883
Fife 38,992 46,616 20,757 18,533 21,363 11,978 5,810 380 164,429
Glasgow City 60,114 73,839 61,435 36,815 25,635 11,377 5,768 602 275,585
Highland 18,588 22,035 21,659 17,075 16,883 8,161 3,906 315 108,622
Inverclyde 18,686 5,419 3,214 3,136 3,337 1,780 1,362 205 37,139
Midlothian 943 11,854 10,006 4,244 4,083 2,461 1,655 157 35,403
Moray 11,322 9,986 5,979 5,587 5,093 1,821 559 50 40,397
North Ayrshire 21,178 17,852 6,417 6,374 8,542 3,446 1,146 52 65,007
North Lanarkshire 52,502 36,193 18,208 14,947 14,788 7,053 2,480 120 146,291
Orkney Islands 2,294 2,639 2,074 1,587 1,112 230 18 3 9,957
Perth & Kinross 8,478 14,213 11,059 9,858 10,911 6,816 5,336 631 67,302
Renfrewshire 12,298 24,958 13,194 10,734 9,920 5,548 3,199 199 80,050
Scottish Borders 15,710 12,218 6,436 5,493 6,003 4,352 3,902 424 54,538
Shetland Islands 2,858 1,750 2,573 1,679 1,206 225 55 - 10,346
South Ayrshire 7,038 12,195 8,431 8,013 9,297 4,542 2,874 267 52,657
South Lanarkshire 34,910 28,654 24,039 18,663 17,676 10,156 5,427 400 139,925
Stirling 5,386 8,127 3,940 4,093 5,823 4,837 4,619 622 37,447
West Dunbartonshire 7,606 16,535 7,269 5,546 4,084 1,529 579 45 43,193
West Lothian 17,024 23,924 9,235 7,341 8,785 4,996 2,365 153 73,823

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. Council tax levels remain constant at 2007-08 levels as a consequence of the council tax freeze agreed between the Scottish Government and local government.

Table 2.4 - Scotland Council Tax Levels

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Scotland Average Band D Council Tax (£)1 1,129 1,149 1,149 1,149 1,149 1,149
Band D % increase (cash terms) 3.2% 1.8% 0.0% 0.0% 0.0% 0.0%
Band D % increase (real terms2) -0.2% -1.0% -2.7% -1.6% -3.0% -2.4%
Average Council Tax Bill per Dwelling (£)3 958 980 983 987 985 984

1. Since 2008-09, Council Tax rates have been frozen 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, new construction and removal of demolished housing from the roll.

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, exemptions or reductions 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 (£)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Scotland 1,129 1,149 1,149 1,149 1,149 1,149
Aberdeen City 1,196 1,230 1,230 1,230 1,230 1,230
Aberdeenshire 1,113 1,141 1,141 1,141 1,141 1,141
Angus 1,072 1,072 1,072 1,072 1,072 1,072
Argyll & Bute 1,156 1,178 1,178 1,178 1,178 1,178
Clackmannanshire 1,127 1,148 1,148 1,148 1,148 1,148
Dumfries & Galloway 1,018 1,049 1,049 1,049 1,049 1,049
Dundee City 1,211 1,211 1,211 1,211 1,211 1,211
East Ayrshire 1,171 1,189 1,189 1,189 1,189 1,189
East Dunbartonshire 1,121 1,142 1,142 1,142 1,142 1,142
East Lothian 1,096 1,118 1,118 1,118 1,118 1,118
East Renfrewshire 1,105 1,126 1,126 1,126 1,126 1,126
Edinburgh, City of 1,152 1,169 1,169 1,169 1,169 1,169
Eilean Siar 999 1,024 1,024 1,024 1,024 1,024
Falkirk 1,045 1,070 1,070 1,070 1,070 1,070
Fife 1,091 1,118 1,118 1,118 1,118 1,118
Glasgow City 1,213 1,213 1,213 1,213 1,213 1,213
Highland 1,135 1,163 1,163 1,163 1,163 1,163
Inverclyde 1,206 1,198 1,198 1,198 1,198 1,198
Midlothian 1,210 1,210 1,210 1,210 1,210 1,210
Moray 1,096 1,135 1,135 1,135 1,135 1,135
North Ayrshire 1,125 1,152 1,152 1,152 1,152 1,152
North Lanarkshire 1,077 1,098 1,098 1,098 1,098 1,098
Orkney Islands 1,007 1,037 1,037 1,037 1,037 1,037
Perth & Kinross 1,136 1,158 1,158 1,158 1,158 1,158
Renfrewshire 1,143 1,165 1,165 1,165 1,165 1,165
Scottish Borders 1,064 1,084 1,084 1,084 1,084 1,084
Shetland Islands 1,017 1,053 1,053 1,053 1,053 1,053
South Ayrshire 1,111 1,154 1,154 1,154 1,154 1,154
South Lanarkshire 1,076 1,101 1,101 1,101 1,101 1,101
Stirling 1,201 1,223 1,209 1,209 1,209 1,209
West Dunbartonshire 1,138 1,163 1,163 1,163 1,163 1,163
West Lothian 1,101 1,128 1,128 1,128 1,128 1,128

Map 2.1

Map 2.1

Band D Council Tax Bill Amount by Local Authority, 2010-11

Not all dwellings are liable to pay full council tax. A dwelling may be eligible for a discount or exemption dependent on either the status of the dwelling or 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 these 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 2007 to 2011 is given below in Table 2.6.

Table 2.6 - Chargeable dwellings, Discounts and Exemptions

2007 2008 2009 2010 2011
Total dwellings 2,442,284 2,462,571 2,477,397 2,488,928 2,500,769
Dwellings exempt 106,394 112,838 112,168 111,454 111,740
Chargeable dwellings 2,335,890 2,349,733 2,365,229 2,377,474 2,389,029
Chargeable dwellings subject to:
25% discount 929,326 929,246 936,957 941,915 945,515
Second Homes2 35,057 35,036 37,060 38,002 39,250
Long Term Empty2 20,328 22,784 22,169 24,598 25,356
Occupied entirely by disregarded adults 3,394 1,986 2,668 1,887 1,910
Dwellings not subject to discount 1,347,785 1,360,681 1,366,375 1,371,072 1,376,998

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 years3. 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 2010-11 (relating to that billing year) are reported in table 2.7 below.

Table 2.7 - Council Tax Income by Local Authority, 2010-11

£ thousands
Council Tax Income (excl CTB)1 Council Tax Benefit Subsidy (CTB) Council Tax Income (incl CTB)1
Scotland 1,923,186 375,142 2,298,328
Aberdeen City 96,376 11,151 107,527
Aberdeenshire 109,881 8,600 118,481
Angus 39,582 6,050 45,632
Argyll & Bute 40,301 6,010 46,311
Clackmannanshire 17,800 3,718 21,518
Dumfries & Galloway 53,325 9,219 62,544
Dundee City 45,643 13,396 59,039
East Ayrshire 37,819 10,220 48,039
East Dunbartonshire 47,799 4,988 52,787
East Lothian 40,425 5,620 46,045
East Renfrewshire 40,418 4,115 44,533
Edinburgh, City of 197,715 29,824 227,539
Eilean Siar 8,304 1,819 10,123
Falkirk 50,744 8,899 59,643
Fife 129,696 22,072 151,768
Glasgow City 179,924 73,858 253,782
Highland 94,937 13,661 108,598
Inverclyde 25,343 7,291 32,634
Midlothian 31,884 5,389 37,273
Moray 33,659 4,131 37,790
North Ayrshire 45,646 12,104 57,750
North Lanarkshire 96,938 26,670 123,608
Orkney Islands 6,944 915 7,859
Perth & Kinross 64,177 7,079 71,256
Renfrewshire 61,911 13,898 75,809
Scottish Borders 44,179 5,955 50,134
Shetland Islands 7,841 788 8,629
South Ayrshire 44,300 9,033 53,333
South Lanarkshire 104,892 23,049 127,941
Stirling 38,847 4,926 43,773
West Dunbartonshire 29,030 10,125 39,155
West Lothian 56,906 10,569 67,475

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 2011)

Number of properties Rateable value (£000s)
CATEGORY 1st April 2011 1st April 2011
Advertising 1,987 8,317
Care Facilities 3,144 102,665
Communications 377 16,377
Cultural 1,376 42,005
Education and Training 3,924 502,023
Garages and Petrol Stations 4,514 69,358
Health and Medical 3,122 198,593
Hotels 4,655 181,967
Industrial Subjects 45,534 1,116,737
Leisure, Entertainment, Caravans etc. 19,197 229,992
Offices 37,307 1,135,617
Other 12,969 89,471
Petrochemical 142 113,187
Public Houses 3,973 115,752
Public Service Subjects 10,083 312,979
Quarries, Mines, etc. 697 26,722
Religious 6,305 53,760
Shops 52,732 1,605,904
Sporting Subjects 3,328 19,166
Statutory Undertaking 603 737,170
TOTAL ALL NON-DOMESTIC PROPERTIES 215,969 6,677,761

Table 2.9 - Non-Domestic Rates Subjects by Local Authority (as at 1 April 2011)1

Local Authority Rateable Value Band Total Non-Domestic Properties
<= £18,000 £18,001 to £34,999 >= £35,000
Scotland 166,830 19,964 29,175 215,969
Aberdeen City 4,972 1,165 2,278 8,415
Aberdeenshire 9,565 747 947 11,259
Angus 4,068 363 396 4,827
Argyll & Bute 6,947 336 356 7,639
Clackmannanshire 1,263 135 150 1,548
Dumfries & Galloway 7,903 503 561 8,967
Dundee City 4,092 617 992 5,701
East Ayrshire 3,132 324 406 3,862
East Dunbartonshire 1,656 302 311 2,269
East Lothian 2,688 257 326 3,271
East Renfrewshire 1,215 213 231 1,659
Edinburgh, City of 12,660 2,425 3,957 19,042
Eilean Siar 1,954 99 113 2,166
Falkirk 3,539 486 692 4,717
Fife 9,972 1,229 1,624 12,825
Glasgow City 17,196 2,916 4,866 24,978
Highland 14,486 965 1,374 16,825
Inverclyde 1,737 223 315 2,275
Midlothian 2,139 251 363 2,753
Moray 3,914 250 362 4,526
North Ayrshire 3,990 395 502 4,887
North Lanarkshire 6,467 1,029 1,561 9,057
Orkney Islands 1,771 114 96 1,981
Perth & Kinross 6,819 580 730 8,129
Renfrewshire 4,597 618 968 6,183
Scottish Borders 6,156 407 415 6,978
Shetland Islands 1,665 102 145 1,912
South Ayrshire 3,727 443 554 4,724
South Lanarkshire 6,857 1,147 1,487 9,491
Stirling 3,887 441 563 4,891
West Dunbartonshire 2,031 280 421 2,732
West Lothian 3,765 602 1,113 5,480

1. Includes properties with zero rateable value.

NDR bills are calculated by multiplying the rateable value of a property by the poundage rate. 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 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, revaluation is designed to be cost neutral, hence a drop in the poundage (from 48.1p to 40.7p) is seen for the same time period.

The cumulative Rateable Value for the Valuation Roll at the end of the 2010-11 financial year and NDR Income for 2010-11 and 2011-12 per Local Authority are given in Table 2.11.

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

2007-08 2008-09 2009-10 2010-11 2011-12
Non Domestic Rates Income (£m) 1 1,928 1,924 2,010 2,136 2,239
Total Rateable Value (£m) 5,239 5,296 5,299 6,612 6,678
Poundage Rate (pence) 44.1 45.8 48.1 40.7 42.6

1. Notified estimate of income for 2010-11; mid-year estimate of income for 2011-12

Table 2.11 - Non-Domestic Rates Properties, Rateable Values and Income By Local Authority1,2

Authority Non-Domestic Properties Non-Domestic Rateable Values3 Non-Domestic Rate income
2010-114 2011-125
April 2011 April 2011
(£000s) (£000s) (£000s)
Scotland 215,969 6,677,761 2,136,388 2,239,162
Aberdeen City 8,415 448,688 155,672 162,842
Aberdeenshire 11,259 203,901 66,764 72,597
Angus 4,827 76,600 22,711 23,692
Argyll & Bute 7,639 85,693 25,620 26,200
Clackmannanshire 1,548 39,343 10,269 10,917
Dumfries & Galloway 8,967 120,419 37,959 40,966
Dundee City 5,701 197,470 58,825 49,612
East Ayrshire 3,862 82,562 25,426 26,250
East Dunbartonshire 2,269 64,951 20,137 21,044
East Lothian 3,271 67,839 19,677 21,274
East Renfrewshire 1,659 38,784 11,425 12,804
Edinburgh, City of 19,042 912,194 288,506 307,717
Eilean Siar 2,166 20,931 5,707 5,954
Falkirk 4,717 174,799 60,476 62,799
Fife 12,825 429,447 134,426 134,089
Glasgow City 24,978 983,090 297,399 306,833
Highland 16,825 301,188 93,300 104,973
Inverclyde 2,275 59,965 17,413 19,191
Midlothian 2,753 74,507 22,526 24,520
Moray 4,526 81,733 25,929 28,202
North Ayrshire 4,887 106,018 30,918 33,971
North Lanarkshire 9,057 298,921 94,425 100,399
Orkney Islands 1,981 24,680 7,643 8,117
Perth & Kinross 8,129 146,472 44,342 46,832
Renfrewshire 6,183 250,090 82,866 89,851
Scottish Borders 6,978 87,532 22,012 26,210
Shetland Islands 1,912 43,618 14,201 14,876
South Ayrshire 4,724 110,767 34,235 36,453
South Lanarkshire 9,491 648,058 235,013 251,250
Stirling 4,891 114,693 35,984 27,539
West Dunbartonshire 2,732 172,763 64,774 66,383
West Lothian 5,480 210,048 69,806 74,805

1. The most recent business rates revaluation came into effect on 1st April 2011
2. A number of individual councils collect certain rates bills on behalf 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. Notified estimate.
5. Mid-year estimate.

The figures presented in Table 2.11 are shown net of reliefs. Relief4 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 2006-07 to 2010-11.

Table 2.12 - Non-Domestic Rates Reliefs by Relief Type

£ thousands
2006-07 2007-08 2008-09 2009-10 2010-111
Mandatory Unoccupied Property/Partly Unoccupied Property 130,155 119,957 127,385 153,361 145,936
Charities 93,423 97,361 102,475 110,264 123,417
Sports Clubs2 0 0 0 2,683 4,394
Disabled persons relief 40,079 40,040 42,914 45,484 51,888
SBRRS/SBBS3 24,321 24,686 72,553 108,420 123,259
Religious Properties 18,439 18,146 18,986 20,218 24,016
Rural Rate Relief 927 924 936 960 1,059
Former Agricultural Premises4 12 14 . . .
Renewable Energy Relief Scheme5 0 0 0 0 3,560
Discretionary Charities & other organisations 9,428 10,405 10,943 11,867 13,314
Sports Clubs 9,309 9,173 9,651 8,921 8,835
Rural Rate relief 2,964 2,977 2,952 2,958 3,070
Backdated relief for Sports Clubs & Charities 181 38 101 45 56
Hardship 3 20 27 19 4
Former Agricultural Premises4 4 5 . . .
Stud Farms 0 0 0 0 0
Gross Amount 329,244 323,746 388,921 465,201 502,810

1. Notified estimate of relief expenditure for 2010-11
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
5. The Renewable Energy Relief Scheme was introduced at 1 April 2010

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 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 2010-11 is given in Annex D. The 2010-11 distributable amount per Local Authority is shown in table 2.13.

Table 2.13 - Non-Domestic Rates Distributable Amount by Local Authority, 2010-11

Non-Domestic Rate Income
Scotland 2,068,200
Aberdeen City 84,193
Aberdeenshire 96,621
Angus 44,141
Argyll & Bute 36,214
Clackmannanshire 20,200
Dumfries & Galloway 59,455
Dundee City 57,010
East Ayrshire 47,987
East Dunbartonshire 41,904
East Lothian 38,455
East Renfrewshire 35,702
Edinburgh, City of 188,733
Eilean Siar 10,484
Falkirk 60,652
Fife 144,812
Glasgow City 233,786
Highland 87,794
Inverclyde 32,325
Midlothian 32,237
Moray 35,122
North Ayrshire 54,389
North Lanarkshire 130,258
Orkney 7,959
Perth & Kinross 57,694
Renfrewshire 67,946
Scottish Borders 44,989
Shetland 8,795
South Ayrshire 44,685
South Lanarkshire 124,084
Stirling 35,354
West Dunbartonshire 36,390
West Lothian 67,830

Source: Finance Circular 9/2010 (Annex C), 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
2006-07 2007-08 2008-09 2009-10 2010-11
Education 84,863 93,255 85,691 87,115 95,006
Cultural & Related Services 76,337 81,421 78,621 85,516 81,521
Social Work 232,588 256,018 259,061 246,014 251,167
Police, Fire & Emergency Planning 49,878 55,564 88,557 93,043 55,098
Roads & Transport 133,008 133,005 146,605 165,941 146,068
Environmental Services 98,951 117,585 117,873 123,164 120,400
Planning & Economic Development 144,215 141,791 112,644 120,146 97,897
Non-HRA Housing 123,072 124,893 232,028 189,150 164,339
Central Services 101,932 130,075 141,455 144,819 113,862
Trading Services 66,203 68,765 70,810 66,992 66,852
Total GF Sales, Rents, Fees and Charges 1,111,047 1,202,370 1,333,345 1,321,900 1,192,210
HRA 911,946 909,126 920,146 955,710 979,571
Common Good Fund 7,892 7,342 8,324 9,073 7,168
Road Bridges 16,224 13,618 162 133 89
Total Sales, Rents, Fees and Charges 2,047,109 2,132,456 2,261,977 2,286,816 2,179,038

1. The Housing Revenue Account (HRA) records income and expenditure relating to Local Authority housing stock

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

2008-09 2009-10 2010-11
Other Grants, reimbursements and contributions 661,273 638,240 758,937
General Fund 637,719 618,847 741,031
Housing Revenue Account 4,086 5,942 2,309
Common Good 1,325 396 353
Road Bridges 18,143 13,055 15,244
Interest and Investment Income 106,994 35,387 30,655
General Fund 92,457 30,366 26,185
Housing Revenue Account 9,726 1,638 1,260
Common Good 4,352 3,296 3,157
Road Bridges 459 87 53
Increases in Revenue Balances 2,046 2,332 9,947
Total 770,313 675,959 799,539

2.6 Capital Grants

Capital grants are grants provided to local authorities to fund capital investment. The Scottish Government provides two types of grant funding to local authorities - a General Capital Grant and a number of ring-fenced grants. Scottish Government Agencies, such as Transport Scotland, and Non-Departmental Bodies, such as Sportscotland may also award grant for projects. 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, 2010-111,2

£ thousands
Scotland Unitary Authorities Police Boards Fire Boards Regional Transport Partnerships Bridge Authorities Valuation Boards
Scottish Government General Capital Grant 313,660 311,492 1,436 732 - - -
Scottish Government Ring Fenced Capital Grants 107,371 72,075 1,979 9,458 23,859 - -
Grants from Scottish Government Agencies and NDPBs 126,721 113,363 723 - 100 12,535
Grants from other Local Authorities/Joint Boards 25,689 7,520 16,868 - 1,236 - 65
European Union Structural Funds 2,063 2,000 - - 63 - -
Contributions from private developers or persons 18,433 18,433 - - - - -
Grants from the National Lottery 8,421 8,421 - - - - -
Other grants/ contributions 48,946 45,717 714 277 2,145 - 93
Total Grants 651,304 579,021 21,720 10,467 27,403 12,535 158

1. These figures are those reported by local authorities in their 2010-11 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' is the term used to recognise income from the sale or disposal of a fixed asset, such as land or council housing. Under statute capital receipts may only be used to fund capital expenditure or for the repayment of the principal of loans.

Table 2.17 details capital receipts categorised by service from 2006-07 to 2010-11. In order to reflect the corporate nature of assets and to promote good asset management practices local authorities commonly move assets to "Central Services" (which forms part of the "Other Services" categorisation in this table) when they become identified as surplus for disposal. This can be seen from the table where in recent years for General Fund services, the greatest value of capital receipts has generally been reported against "Other Services". From 2009-10, Local authorities have been required to report Capital Receipts against the service with which the asset was last in use. A detailed breakdown of Capital Receipts by Service for 2010-11 can be found in Annex E.

Table 2.17 - Service Breakdown of Capital Receipts Raised

£ thousands
2006-07 2007-08 2008-09 2009-10 2010-11
Education 12,348 62,563 30,489 4,089 18,822
Culture & Related Services 3,260 12,697 2,594 2,243 12,013
Social Work 1,964 3,473 715 285 2,026
Police & Fire 4,644 4,112 4,908 3,709 3,834
Roads & Transport 5,407 5,849 1,928 742 913
Environmental Services 565 644 793 1,113 799
Planning & Economic Development 18,661 26,421 9,120 8,996 17,901
Trading Services - 243 6 133 1,082
Other Services 178,906 168,348 43,557 142,394 18,613
Non-HRA Housing 262 454 211 602 453
Total General Fund Services 226,017 284,804 94,321 164,306 76,456
Housing Revenue Account 225,276 229,109 135,657 65,091 65,515
Total Services 451,293 513,913 229,978 229,397 141,971

Contact

Email: Bruce Golding