Information

Scottish Local Government Financial Statistics 2013-14

Scottish Local Government Financial Statistics is an annual publication that provides a comprehensive overview of Scottish Local Authority financial activity. The publication covers Local Authority income, revenue and capital expenditure, outstanding debt, local taxation and Local Authority pensions.

This document is part of a collection


1. Local Government Revenue Expenditure and Income

1.1 Total Revenue Expenditure and Income

The Police and Fire Reform (Scotland) Act 2012 made changes to the way police and fire services are delivered in Scotland. From 1 April 2013 police and fire services are delivered by new central government bodies - Police Scotland and the Scottish Fire and Rescue Service - and not local government. Due to the way these services were delivered and funded whilst part of local government it is not possible to remove all police and fire income and expenditure from prior years' statistics. As such 2013-14 values are not strictly comparable with previous years.

Total gross revenue expenditure by local government in Scotland in 2013-14 was £15.3 billion. Of this, £0.83 billion of expenditure was for the provision of housing through the Housing Revenue Account (HRA).

Net Revenue Expenditure to be met from government grant, local taxation and reserves was £11.7 billion.

Table 1.1 details revenue income and expenditure for 2013-14. The biggest single element of gross expenditure were operating costs (which includes property costs, supplies and services costs, transport and payments to agencies and other bodies) which account for £6.54 billion of all expenditure. The second largest element was employee costs which account for £6.16 billion.

Transfer payments are those made to individuals for which no goods or services are received in return by the local authority. The majority of transfer payments are housing benefits which make up £1.78 billion of the total of £2.05 billion. An adjustment for Inter Account and Inter Authority Transfers is made to the gross expenditure to take account of transfers between local authorities and between different services within an authority and ensure that expenditure is not counted twice.

HRA

The Housing Revenue Account (HRA) records income and expenditure relating to local authority housing stock. Whilst most other local authority services are funded through a combination of non-domestic rates and council tax income plus Government grants, the HRA is a ring-fenced account, and expenditure is funded by housing rents and Government subsidies.

Trading Services

Trading service accounts cover the finances of local authority operated services that are commercial in nature. They are financed by the charges made by a local authority to the recipients of the services they provide.

The main trading services are local authority transport (buses, ferries and other Local Authority transport undertakings), fishery harbours and markets and other trading services (including airports, other harbours and bridges).

Table 1.1 - Total Revenue Expenditure and Income, 2013-14

  £thousands
  General Fund Services1 HRA Housing Services Total
EXPENDITURE
Employee Costs 6,025,452 133,774 6,159,226
Premises Related Costs 928,627 360,029 1,288,656
Transport Related Expenditure 433,682 5,219 438,901
Supplies and Services 1,256,610 71,525 1,328,135
Third Party Payments 3,458,505 24,904 3,483,409
Operating Costs 6,077,424 461,677 6,539,101
Transfer Payments 2,049,333 4,657 2,053,990
Support Services 758,994 70,151 829,145
Revenue Contribution to Capital Expenditure 106,589 187,153 293,742
Adjustment for Inter Account and Inter Authority Transfers -532,934 -26,704 -559,638
Gross Expenditure 14,484,858 830,708 15,315,566
INCOME
Specific Revenue Grants 8,584 3,673 12,257
General Capital Grant used to fund grants to third parties 125,312 0 125,312
Other Central Government Grants - Housing Services 1,612,393 0 1,612,393
Other Central Government Grants - Other 214,452 2,299 216,751
Government Grants2 1,960,741 5,972 1,966,713
Other Grants reimbursements and Contributions 770,662 3,209 773,871
Customer and Client Receipts 1,243,867 1,073,362 2,317,229
Income 3,975,270 1,082,543 5,057,813
Service Net Revenue Expenditure/Income(-) 10,509,588 -251,835 10,257,753
Net Revenue Expenditure (with Specific Grants Added Back In) 10,518,172 -248,162 10,270,010
Finance Costs (net of investment income) 589,303 135,615 724,918
Surplus(-)/deficit from Significant Trading Operations -30,724 0 -30,724
Statutory repayment of debt 598,150 115,626 713,776
Net Revenue Expenditure to be financed from General Revenue Grant, Local Taxation and Reserves 11,674,901 3,079 11,677,980

1. Includes trading services and non-HRA housing. For a breakdown of expenditure in these areas, refer to Table 1.2 and Annexes A and B.
2. Excluding General Revenue Funding
Source: Local Financial Returns – LFR 00

1.2 General Fund Revenue Expenditure and Income

The highest spending service in the General Fund is education which had net expenditure of £4.60 billion, which makes up 44% of net expenditure. Of this total £1.77 billion was spent on primary education and £1.87 billion on secondary education with the remainder spent on pre-primary, special and community education. Excluding Police & Fire, Education's share of total net expenditure has stayed the same at around 44% over the seven years to 2013-14.

Social work is the next largest service with net expenditure of £3.04 billion (29% of total net expenditure). Data on social work expenditure is collected on the basis of client groups. Of the client groups identified in the LFRs, older persons has the highest expenditure of £1.32 billion followed by children and families with £0.84 billion and adults with learning disabilities with £0.50 billion. A full breakdown of expenditure by sub-service is available in Annex A.

The single largest income source shown in Table 1.2 are the grants received by local authorities from the Department of Work and Pensions to fund housing benefits. These grants were worth £1.78 billion in 2013-14 and are shown as part of income in non-HRA housing.

Another significant source of income is customer and client receipts (including all charges to service users) which raised £1.24 billion across all services. Social work services also receive income from the NHS to provide services, the value of these payments in 2013-14 were £0.404 billion, up slightly from £0.398 billion in 2012-13. A full breakdown of income by service can be found in Annex B.

Table 1.2 - General Fund Revenue Expenditure and Income, 2013-14

  £ thousands
  Gross Expenditure Income Net Expenditure Net Expenditure as
% of Total Services
Ring Fenced Revenue Grants
Education 4,805,002 200,440 4,604,562 43.8% 4,357
Cultural and Related Services 707,638 87,265 620,373 5.9% 0
Social Work 3,855,869 819,814 3,036,055 28.9% 0
Roads and Transport 684,601 224,233 460,368 4.4% 0
Environmental Services 802,911 132,515 670,396 6.4% 0
Planning & Economic Development 462,752 178,392 284,360 2.7% 0
Central Services 711,096 194,694 516,402 4.9% 0
Non-HRA Housing 2,386,681 2,059,424 327,257 3.1% 4,227
Trading Services 68,308 69,909 -1,601 0.0% 0
Net Cost of Service1 14,484,858 3,966,686 10,518,172 100.0% 8,584
Interest and Investment Income 673,808 84,505 589,303   0
Surplus/deficit from Significant Trading Operations -30,724 0 -30,724   0
Statutory Repayment of Debt 598,150 0 598,150   0
Total1 15,726,092 4,051,191 11,674,901   8,584

Source: Local Financial Returns – LFR 00

Table 1.3 - Net Revenue Expenditure by Service, 2009-10 to 2013-14

  £ millions
  2009-10 2010-111 2011-12 2012-13 2013-14
Education 4,633 4,677 4,553 4,595 4,605
Cultural & Related Services 662 638 618 614 620
Social Work 2,825 2,861 2,873 2,962 3,036
Roads & Transport 486 503 477 487 460
Environmental Services 657 664 656 656 670
Planning & Development Services 332 313 292 283 284
Central Services 2, 3 610 553 441 412 516
Non-HRA Housing 420 394 331 316 327
Trading Services -9 -8 -12 -4 -2
Total General Fund Expenditure excluding Police & Fire 3 10,617 10,593 10,228 10,319 10,518
Police 2 1,125 978 1,018 1,021  
Fire 2 332 313 286 297  
Central Services (Police & Fire) 2, 3 22 7 -22 -50  
Total General Fund Expenditure 12,096 11,892 11,510 11,588 10,518

a. From 2010-11 the funding of Police Pensions changed leading to a reduction in net expenditure. Therefore police expenditure figures from 2010-11 onwards are not directly comparable with figures up to 2009-10.
2. Following the Police and Fire Reform (Scotland) Act 2012 figures for 2013-14 may not be comparable with previous years. See section 5.2 for details.
3. Police and fire board net expenditure in central services has been separated from overall general fund expenditure to allow for time series comparison.
Source: Local Financial Returns – LFR 00

Chart 1.1 shows net revenue expenditure per capita by local authority area. This includes expenditure by all local authority bodies in an area (i.e. including expenditure by councils, valuation boards and regional transport partnerships). The chart shows that on average in Scotland local government spent £2,191 per person in 2013-14, up slightly from £2,166 in 2012-13.

Chart 1.1 - Net Revenue Expenditure per Capita by Local Authority, 2013-14 (£)

Chart 1.1

Source: Local Financial Returns - LFR 00 and NRS Mid-Year Population Estimates (2013)

1.3 Revenue Expenditure Financing

Revenue expenditure by local authorities is funded by three main sources:

  • Grants from Central Government
  • Local Taxation (Council Tax and Non Domestic Rates)
  • Sales, fees and charges for services (Customer and Client Receipts)

The main source of revenue income for local government is General Revenue Funding, (formerly referred to as the Revenue Support Grant). General Revenue Funding (GRF) is paid by the Scottish Government in support of local authorities' general net revenue expenditure.

Local taxation contributed over £4.4 billion to the funding of local government in 2013-14 and further information on these taxes is set out in the following sections. Other income is mostly composed of grants and subsidies received from central government and other parts of the public sector.

Table 1.4 - Revenue Income by Source, 2009-10 to 2013-14

£ millions
2009-10 2010-11 2011-12 2012-13 2013-14
General Revenue Grant1 7,757 8,149 7,790 7,782 7,225
Council Tax 1,910 1,923 1,926 1,947 1,981
Council Tax Benefit Subsidy 368 375 376 371
Non Domestic Rates 2,165 2,068 2,182 2,263 2,435
Customer and Client Receipts 2,287 2,179 2,298 2,341 2,327
Other Income 3,400 3,357 3,308 3,246 2,513
Total revenue income 17,886 18,052 17,879 17,950 16,481

1. Figures for 2013-14 are not comparable as prior years include income relating to police and fire joint board expenditure. See section 5.2 for more details.

2. Council Tax Reduction (CTR) was introduced from 1 April 2013 to replace Council Tax Benefit (CTB), which has been abolished by the UK Government as part of its welfare reform programme.

Sources: General Revenue Funding (Up to 2010-11) - Finance Circulars; Non-Domestic Rates - Finance Circulars; All Other Data - Local Financial Returns (LFRs)

Chart 1.2 - Revenue Income by Source, 2013-14 (£ millions)

Chart 1.2

1.3.1 Council Tax

In 2013-14, council tax bills were issued to around 2.4 million dwellings in Scotland. The amounts collected in 2013-14 raised a total of almost £2 billion across all local authorities in Scotland.

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 and is used as a source of funding in addition to that received from other sources (such as General Revenue Funding, Central Government Grants, ring-fenced revenue grants and other locally raised income).

There are a number of factors that determine the amount of council tax that a dwelling is liable for. These are:

The market value of the dwelling as at the 1st April 1991. Each dwelling is placed into one of 8 bands from A to H, with band A dwellings liable for the lowest rates of council tax and band H attracting the highest rates.

The band D rate set by the local authority, with other bands being set by a ratio to band D.

A range of exemptions, discounts and reductions that are available in certain circumstances, or in some cases an increase in council tax due to the application of a levy.

Table 1.5 shows the number of dwellings that were chargeable for council tax and the number that were exempt each year from 2009 to 2014. There were a total of 2.540 million dwellings in Scotland in 2014, an increase of around 63,000 (2.5 per cent) since 2009. The number of chargeable dwellings has also increased by around 62,500 (2.6 per cent) from 2.365 million chargeable dwellings in 2009, to 2.427 million in 2014. Around 4.5 per cent of dwellings are exempt from council tax each year, 112,525 in 2014.

Table 1.5 - Total number of dwellings, chargeable and exempt in Scotland, 2009 to 2014

2009 2010 2011 2012 2013 2014
Total dwellings 2,477,397 2,488,928 2,500,769 2,515,042 2,526,703 2,540,330
Dwellings exempt 112,168 111,454 111,740 113,173 116,372 112,525
Chargeable dwellings 2,365,229 2,377,474 2,389,029 2,401,869 2,410,331 2,427,805

Source: Council Tax Base (CTAXBASE) returns

Table 1.6 shows the number of chargeable dwellings in each local authority and council tax band. The three local authorities with the highest number of chargeable dwellings were Glasgow, Edinburgh and Fife and over a quarter of the chargeable dwellings in Scotland are in one of these local authorities. Around three quarters (1.8 million) of all chargeable dwellings were in council tax bands A to D, and 0.5 per cent (12,579 dwellings) in band H.

Table 1.6 - Chargeable dwellings1 by council tax band & local authority (as at 1 September 2014)

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 9/9 11/9 13/9 15/9 18/9
Scotland 508,900 569,608 391,611 320,715 323,153 183,233 118,006 12,579 2,427,805
Aberdeen City 19,912 26,218 17,507 12,977 13,519 8,046 7,146 848 106,173
Aberdeenshire 19,526 15,453 13,667 16,697 20,547 15,212 9,455 550 111,107
Angus 14,416 12,288 6,818 8,114 7,243 2,909 1,585 150 53,523
Argyll & Bute 7,204 9,529 8,736 5,766 7,094 4,014 2,741 217 45,301
Clackmannanshire 6,052 7,048 1,920 2,441 3,126 1,829 832 42 23,290
Dumfries & Galloway 10,613 22,076 11,535 9,724 10,209 4,997 2,360 155 71,669
Dundee City 25,251 15,278 7,983 8,184 6,249 2,277 1,025 33 66,280
East Ayrshire 25,417 9,156 4,941 6,352 5,897 3,046 920 41 55,770
East Dunbartonshire 1,042 3,577 8,059 7,936 10,210 6,758 6,250 595 44,427
East Lothian 1,122 8,938 14,386 5,722 5,732 4,618 3,637 622 44,777
East Renfrewshire 1,211 4,980 3,895 6,294 7,964 5,918 6,048 681 36,991
Edinburgh, City of 19,988 43,203 40,496 34,623 36,288 22,738 20,096 3,713 221,145
Eilean Siar 4,436 3,610 2,709 1,682 1,159 171 33 3 13,803
Falkirk 21,346 18,813 6,370 8,409 8,345 5,022 2,419 61 70,785
Fife 38,725 46,617 21,251 19,166 21,895 12,491 6,043 409 166,597
Glasgow City 57,261 73,943 62,892 37,888 26,382 11,694 5,821 621 276,502
Highland 18,614 22,145 22,444 17,658 17,512 8,539 4,146 310 111,368
Inverclyde 18,019 5,606 3,397 3,216 3,385 1,853 1,395 209 37,080
Midlothian 946 12,045 10,315 4,743 4,282 2,756 1,821 162 37,070
Moray 11,265 10,087 6,230 5,767 5,417 1,979 591 51 41,387
North Ayrshire 21,060 17,830 6,616 6,520 8,670 3,656 1,140 52 65,544
North Lanarkshire 52,190 36,358 18,690 15,485 15,220 7,682 2,691 129 148,445
Orkney Islands 2,203 2,699 2,225 1,665 1,205 274 19 4 10,294
Perth & Kinross 8,415 14,123 11,206 10,082 11,123 7,028 5,636 645 68,258
Renfrewshire 12,218 24,407 13,989 11,179 10,109 5,657 3,308 200 81,067
Scottish Borders 15,672 12,239 6,626 5,622 6,157 4,470 4,140 444 55,370
Shetland Islands 2,860 1,757 2,649 1,723 1,309 253 56 0 10,607
South Ayrshire 6,945 12,214 8,541 8,081 9,385 4,760 2,952 284 53,162
South Lanarkshire 34,917 28,842 24,623 19,379 18,286 10,766 5,671 459 142,943
Stirling 5,388 8,148 4,004 4,268 5,952 4,964 4,881 660 38,265
West Dunbartonshire 7,713 16,310 7,308 5,669 4,272 1,600 693 64 43,629
West Lothian 16,953 24,071 9,583 7,683 9,010 5,256 2,455 165 75,176
% of all dwellings 21% 23% 16% 13% 13% 8% 5% 1% 100%

1. Excludes dwellings exempt from council tax

2. Council Tax Reduction recipients are included in this Table.

Source: Council Tax Base 2014 (CTAXBASE)

Chart 1.3 shows the distribution of chargeable dwellings across council tax bands in each local authority. Across the whole of Scotland, 60.6 per cent of all chargeable dwellings are in bands A to C. The distribution varies across local authorities because of variations in property market values. Eilean Siar has the largest proportion of its dwellings in bands A to C (77.9 per cent), whereas East Renfrewshire has the lowest proportion of its properties in bands A to C (27.3 per cent).

Chart 1.3 - Percentage of chargeable dwellings by council tax band for each local authority, 1 September 2014

Chart 1.3

As well as the valuation band of the dwelling, the rates for each local authority also determine the council tax liability for each dwelling. Scottish Government and local Government have worked in partnership to freeze council tax rates each year since 2007-08. Prior to this, each local authority determined its own rates of council tax as part of their budget setting process. As a result, each local authority area has different council tax rates. The range of band D council tax levels for each local authority are shown in Chart 1.4. The rates range from £1,024 in Eilean Siar to £1,230 in Aberdeen City.

The council tax charged for all other bands is a proportion of the band D level set. For example, the band A council tax rate is 6/9 (or 67 per cent) of the band D rate for each local authority (the ratios for all bands can be seen in the top row of Table 1.6).

Chart 1.4 - Band D council tax rate by local authority, 2013-14 (£)

Chart 1.4

Source: Council Tax Assumptions (CTAS) returns

Table 1.7 shows how the average band D council tax rates for Scotland have changed each year from 2010-11 to 2014-15. Since 2008-09, the council tax freeze has resulted in each local authority maintaining their rates at 2007-08 levels. The one exception is Stirling where the council took the decision to reduce the band D council tax from £1,223 in 2007-08 to £1,209 in 2008-09, and subsequently to £1,197 in 2012-13. This has caused the Scotland Average band D council tax rate to remain steady at £1,149 since 2007-08 - a fall in real terms.

The average band D council tax bill per dwelling is £989 in 2014-15. This average takes in to account the distribution of dwellings across council tax bands. The average bill per dwelling is lower than the average band D rate because there are a greater proportion of dwellings in the lower value council tax bands than the higher valued bands, as can be seen in Table 1.6.

The impact of Scotland's CTR scheme, which was introduced in 2013 following the UK Government's abolition of the Council Tax benefit, on the average council tax bill per dwelling can also be seen in Table 1.7. Figures on the total value of reductions through CTR for 2014-15 will be available in the 2014-15 version of this publication. The CTR scheme reduces the council tax liability of vulnerable people in Scotland, including people on low incomes, pensioners and lone parents. After taking these reductions in liability into account, the average bill per dwelling for 2013-14 reduced by £150 from £988 to £838.

Table 1.7 - Scotland council tax levels

2010-11 2011-12 2012-13 2013-14 2014-15
Scotland Average band D council tax rate(£)1 1,149 1,149 1,149 1,149 1,149
Band D % increase (cash terms) 0.0% 0.0% 0.0% 0.0% 0.0%
Band D % increase (real terms)2 -2.7% -1.8% -1.6% -2.1% -2.1%
Average council tax bill per dwelling (£)3 985 984 985 988 989
Average council tax bill per dwelling, after Council Tax Reduction/Benefit4 827 826 830 838 n/a

1. Since 2008-09, council tax rates have been frozen at 2007-08 levels.

2. Real terms figures are calculated using GDP deflators (HM Treasury, Dec 2014)

3. This average is taken over all chargeable dwellings and is affected to a minor extent 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.

4. Council Tax Benefit for all years up to 2012-13, Council Tax Reduction from 2013-14 onwards.

Source: Council Tax Assumptions (CTAS), Council Tax Base (CTAXBASE), Local Financial Returns - LFR 12

Not all dwellings are liable to pay the full rate of council tax. Discounts and exemptions are available for certain types of dwellings, and the CTR scheme is available to support vulnerable people in meeting their council tax liabilities. Long term empty properties in some local authorities may be liable for an increased amount of council tax. Table 1.8 below summarises the range of discounts, exemptions and reductions available and the rate of decrease in liability that applies to each type. Numbers of dwellings that are in receipt of each of these schemes from 2009 to 2014 are shown in Table 1.9. Note that in some cases, a council tax liability may be affected by more than one type of discount, exemption or reduction; e.g. an individual may live on their own and be on a low income, therefore in receipt of the 25 per cent discount and a CTR.

Table 1.8 - Council tax discounts, exemptions, reductions and increases, and amounts of decrease/increase in liability

Support Typical dwellings that are eligible Decrease in liability
Exemption
Occupied Persons who are exempt from council tax e.g. full time students. 100%
Unoccupied Empty for less than 6 months, cannot be occupied because in need of repair, residents have moved out due to care needs. 100%
Reduction in liability
Disability reduction Homes that have been adapted for a disabled person One council tax band (e.g. liable for band C when property is band D)
Discounts
25% discount Occupied by only one council tax liable adult. 25%
Second Homes Occupied by those living in tied accommodation (e.g. farm workers, members of the clergy), when they are contributing to the local economy. Between 10 and 50%, depending on local authority policy (see Table 1.10)
Long Term Empty - 6 to 12 months Empty and unfurnished for more than 6 months 50%
Long Term Empty - more than 12 months Empty and unfurnished for more than 12 months Discount between 10% and 50%, or an increase, depending on local authority (see Table 1.10).
Occupied entirely by disregarded adults Dwellings with one or more residents where each of them falls to be disregarded for the purposes of discount. 50%
Council Tax Reduction
Passported In receipt of Pension Credit (Guarantee), JSA (Income based), ESA (Income Based), Income Support. 100%
Not passported Low income household Up to 100%, depending on means test

1. The examples given here are typical but not exhaustive. For a full explanation of council tax discounts and exemptions, download the Scottish Government leaflet here: http://www.scotland.gov.uk/Resource/0042/00423608.pdf

2. Some council tax bill amounts may be affected by more than one type of discount or reduction.

Table 1.9 shows the number of dwellings eligible for each type of discount, exemption or reduction. Of the 2.4 million chargeable dwellings in Scotland, around 1 million were eligible for a discount in 2014. The most common type of discount was the 25 per cent discount, which is available for dwellings where only one person is liable to pay council tax. More than one in three chargeable dwellings are entitled to the 25 per cent discount. Almost 60,000 dwellings are classified as second homes or long term empty properties. Local authorities have discretionary powers to vary the discount, remove the discount, or increase council tax in 2013-14 on long term empty properties (this does not apply to second homes) - an analysis of these figures by local authority is given below. Around 2,800 dwellings received a 50 per cent discount because they were occupied entirely by disregarded adults. The CTR scheme which was introduced in April 2013, supports over half a million, or around a fifth of chargeable dwellings, in meeting their council tax liability.

Table 1.9 - Number of dwellings in receipt of council tax discounts and reductions, September 2014 1

Type of support 2009 2010 2011 2012 2013 2014
All chargeable dwellings 2,365,229 2,377,474 2,389,029 2,401,869 2,410,331 2,427,805
Disability reduction 13,864 14,015 13,999 13,994 13,791 13,736
25% discount 936,957 941,915 945,515 948,208 952,251 953,612
Second homes2 37,060 38,002 39,250 40,599 35,734 27,879
Long Term Empty (empty over 6 months) 22,169 24,598 25,356 25,454 27,327 31,884
Occupied entirely by disregarded adults 2,668 1,887 1,910 1,809 1,579 2,802
Dwellings not subject to discount 1,366,375 1,371,072 1,376,998 1,385,799 1,393,440 1,411,628
Council Tax Reduction/Benefit3 549,220 563,720 565,730 560,880 548,070 533,980

1. All figures as at September of each year

2. Long term empty properties have been empty for 6 months or more. 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.

3. Council Tax Benefit figures from 2009 to 2012 were published by Department for Work & Pensions and are available here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229795/hbctb_release_may13_revised.xls

4. Some dwellings can be eligible for more than one type of support. E.g. if a dwelling's council tax liability is affected by the 25 per cent discount and CTR, it will be counted twice in the table above.

Source: Council Tax Base (CTAXBASE) Returns, Council Tax Reduction data extract, Single Housing Benefit Extract (SHBE).

In 2013-14 local authorities gained the discretionary power to remove the empty properties discount or set a council tax increase of 100 per cent on properties which have been empty for one year or more. Table 1.10 summarises the policies on second homes and long term empty properties that were introduced by each local authority for billing years 2013-14 and 2014-15. In 2013-14, 28 of the 32 local authorities chose to retain the council tax discount at 10 per cent. Glasgow City and North Lanarkshire reduced the discount for long-term empty properties by 50 per cent. Highland removed the discount and Eilean Siar imposed an increase of 100 per cent on long-term empty properties. In 2014-15, the number of local authorities implementing a 10 per cent discount on all long term empty properties decreased to 18. Argyll & Bute, North Lanarkshire, and Stirling opted for a 100 per cent increase (i.e. double the council tax liability) for long term empty properties. Aberdeen City, Aberdeenshire, East Lothian, Edinburgh, Eilean Siar, Fife, Perth & Kinross and West Dunbartonshire introduced a range of policies depending on the circumstances of the household. East Renfrewshire chose a 50 per cent discount, Moray chose a 50 per cent increase. Highland again chose to remove the discount on long term empty properties.

Table 1.10 - Local authority discretionary reductions on Second Homes and Long-Term Empty properties in 2013-14 and 2014-15

Local authority Second Homes Long-Term Empty properties
2013-14 2014-15 2013-14 2014-15
Aberdeen City 10% 10% 10% 10% to -100%
Aberdeenshire 10% 10% 10% 10% to -100%
Angus 10% 10% 10% 10%
Argyll & Bute 10% 10% 10% -100%
Clackmannanshire 10% 10% 10% 10%
Dumfries & Galloway 10% 10% 10% 10%
Dundee City 10% 10% 10% 10%
East Ayrshire 10% 10% 10% 10%
East Dunbartonshire 10% 10% 10% 10%
East Lothian 10% 10% 10% 0% to -100%
East Renfrewshire 10% 10% 10% 50%
Edinburgh, City of 10% 10% 10% 50% to -100%
Eilean Siar 10% 10% -100% 50% to -100%
Falkirk 10% 10% 10% 10%
Fife 10% 10% 10% 50% to -100%
Glasgow City 10% 10% 50% 10%
Highland 10% 10% 0% 0%
Inverclyde 10% 10% 10% 10%
Midlothian 10% 10% 10% 10%
Moray 10% 10% 10% -50%
North Ayrshire 10% 10% 10% 10%
North Lanarkshire 10% 10% 50% -100%
Orkney Islands 10% 10% 10% 10%
Perth & Kinross 10% 10% 10% 10% to -100%
Renfrewshire 10% 10% 10% 10%
Scottish Borders 10% 10% 10% 10%
Shetland Islands 25% 10% 10% 10%
South Ayrshire 10% 10% 10% 10%
South Lanarkshire 10% 10% 10% 10%
Stirling 10% 10% 10% -100%
West Dunbartonshire 10% 10% 10% 10% to -100%
West Lothian 10% 10% 10% 10%

Source: Council Tax Assumptions.

1. Increased council tax levels are shown as negative (e.g. -100% indicates a 100% increase, or a double in the rate).

2. Removal of discount is shown as 0%.

3. Some local authorities' policies were subject to review at the time of giving the information.

4. Some local authorities chose to implement a range of discounts and increases depending on the circumstances of the property. For brevity, the range has been, e.g. 10% to -100% where certain properties receive a maximum of 10% discount, ranging to a 100% levy.

Table 1.11 shows the number of long term empty properties (i.e. empty for more than 6 months), the number that have been empty for over 12 months and the number of those that are subject to a reduced discount or an increase in council tax as at September 2014. These figures relate to the policies for billing year 2014-15, as shown in Table 1.10. In September 2014, of the 16,527 dwellings that had been empty for over 12 months, 5,747 dwellings were affected by a discount below 10 per cent or an increase in council tax. This provision does not apply to second homes. Over 43,137 dwellings were classified as exempt due to being unoccupied.

Table 1.11 - Number of Second Homes, Long Term Empty Properties and Unoccupied Exemptions, September 2014

Number of dwelling entitled to a discount due to being second homes 1 Long term empty properties Unoccupied exemptions 2
Number of dwellings entitled to a discount or increase due to being long term empty Of which, empty for over 12 months Of which a discount below 10% or an increase has been applied
Scotland 27,879 31,884 16,527 5,747 43,137
Aberdeen City 615 691 427 386 1,353
Aberdeenshire 1,162 2,012 0 0 2,056
Angus 772 726 726 0 1,228
Argyll & Bute 3,379 1,358 778 620 1,002
Clackmannanshire 32 294 0 0 250
Dumfries & Galloway 1,868 1,166 886 0 1,413
Dundee City 976 599 331 0 1,653
East Ayrshire 136 735 518 0 1,070
East Dunbartonshire 198 120 120 0 444
East Lothian 550 384 290 118 541
East Renfrewshire 192 28 11 0 350
Edinburgh, City of 2,317 1,770 751 751 2,264
Eilean Siar 776 259 160 134 641
Falkirk 449 693 487 0 1,157
Fife 2,098 4,931 2,262 1,350 2,655
Glasgow City 823 2,685 2,040 0 8,282
Highland 4,280 1,159 660 511 1,848
Inverclyde 204 566 355 0 1,107
Midlothian 36 406 0 0 472
Moray 660 911 760 539 862
North Ayrshire 1,492 1,412 1,137 0 982
North Lanarkshire 80 647 492 420 1,579
Orkney Islands 380 316 0 0 416
Perth & Kinross 1,224 1,631 1,293 338 1,185
Renfrewshire 484 1,172 502 0 1,459
Scottish Borders 1,186 1,421 0 0 1,337
Shetland Islands 164 425 0 0 250
South Ayrshire 459 509 201 0 678
South Lanarkshire 120 941 225 0 2,257
Stirling 412 633 497 497 647
West Dunbartonshire 84 530 398 83 716
West Lothian 271 754 220 0 983

1. Long term empty properties are properties liable for council tax, which have generally been empty for 6 months or more.

2. Unoccupied exemptions are properties which are empty and exempt from paying council tax.

3. More details on council tax discounts and exemptions can be found on the Scottish Government Website at: http://www.scotland.gov.uk/Topics/Government/local-government/17999/counciltax

Local authorities are responsible for billing and collecting the correct amounts of council tax. Each individual bill is calculated by applying the multiplier for each band to the band D council tax level, then applying any discounts, exemptions or reductions as detailed above. Immediately before the start of each financial year local authorities issue council tax bills to dwellings. They collect council tax income relating to these bills over the year, and also continue to collect late amounts from previous billing years[1]. The amounts of council tax collected by each local authority in 2013-14 are reported in Table 1.12 below. In 2013-14 for Scotland as a whole, the total amount of council tax collected (after CTR) was £1.98 billion.

The provisional in-year Council Tax collection rate for 2013-14 was 95.2 per cent. More information about bills issued in 2013-14 and the provisional amounts collected are available in the statistics publication Council Tax Collection Statistics, 2013-14.1

Table 1.12 - Council tax income by local authority, 2013-14

£ thousands
Net Council tax income
Scotland 1,980,733
Aberdeen City 102,739
Aberdeenshire 113,348
Angus 41,368
Argyll & Bute 42,066
Clackmannanshire 18,113
Dumfries & Galloway 54,824
Dundee City 46,482
East Ayrshire 39,636
East Dunbartonshire 47,099
East Lothian 41,572
East Renfrewshire 40,893
Edinburgh, City of 208,086
Eilean Siar 9,056
Falkirk 51,913
Fife 131,340
Glasgow City 182,087
Highland 99,052
Inverclyde 26,492
Midlothian 33,363
Moray 34,526
North Ayrshire 45,756
North Lanarkshire 97,811
Orkney Islands 7,604
Perth & Kinross 67,083
Renfrewshire 63,506
Scottish Borders 45,241
Shetland Islands 8,284
South Ayrshire 45,279
South Lanarkshire 108,265
Stirling 40,122
West Dunbartonshire 29,385
West Lothian 58,342

1. Figures are after Council Tax Reduction is taken in to account and include Community Charge and additional amount billed for reduced discount for second homes and long term empty properties.

2. Figures relate to income collected in financial year 2013-14, which can include amounts that were billed in previous years.

Source: Council Tax Receipts & Returns, 2013-14. Local Financial Returns, 2013-14.

CTR is funded jointly by the UK Government, Scottish Government, and local government. In 2013-14, CTR funding from Government totalled £351 million (£328 from UK Government and £23 million from Scottish Government). Local authorities agreed to contribute an additional £17 million from their own budgets to the cost of the scheme, as part of the joint commitment between Scottish Government and local government to mitigate the UK Government's 10% cut in funding, which was estimated at £40m for 2013-14. The amounts distributed to each local authority and the final total value of reductions awarded are shown in Table 1.13. The total value of reductions through the CTR scheme across Scotland was £359.7 million. This figure is £8.7 million more than the £351 million funding provided by UK Government and Scottish Government, and £8.3 million less than the £368 million total budget which included the £17 million from local authorities.

Table 1.13 - Council Tax Reduction funding and final out-turn by local authority, 2013-14.

£ thousands
Government (SG and UKG) Final total reduction in liability
Scotland 351,000 359,708
Aberdeen City 9,926 9,838
Aberdeenshire 7,752 7,620
Angus 5,483 5,473
Argyll & Bute 5,577 5,781
Clackmannanshire 3,498 3,687
Dumfries & Galloway 8,792 8,935
Dundee City 12,573 12,833
East Ayrshire 9,737 10,033
East Dunbartonshire 4,538 4,754
East Lothian 5,388 5,574
East Renfrewshire 3,970 3,927
Edinburgh, City of 27,131 27,687
Eilean Siar 1,607 1,608
Falkirk 8,508 8,720
Fife 21,081 21,747
Glasgow City 69,954 71,791
Highland 12,573 12,679
Inverclyde 6,806 7,073
Midlothian 5,294 5,346
Moray 3,876 3,918
North Ayrshire 11,533 11,874
North Lanarkshire 24,768 25,548
Orkney Islands 756 776
Perth & Kinross 6,712 6,867
Renfrewshire 13,235 13,763
Scottish Borders 5,672 5,777
Shetland Islands 756 690
South Ayrshire 8,602 8,841
South Lanarkshire 21,175 21,765
Stirling 4,538 4,613
West Dunbartonshire 9,359 9,799
West Lothian 9,831 10,371

1.3.2 Non-Domestic Rates

Non-Domestic Rates (NDR) is a property tax paid by the owner/occupier or tenant of a non-domestic property.

In 2013-14, the NDR income collected was £2.37 billion.

The principles of non-domestic rates were established in the Lands Valuation (Scotland) Act of 1854. This act also provided for the appointment of the Scottish Assessors, who are responsible for determining the classification and valuation of non-domestic and domestic properties, and are independent of both the Scottish Government and local authorities. A non-domestic property is an individual property used for non-domestic purposes. Examples include businesses, public buildings and advertising hoardings. The value given to a property for NDR purposes is called its rateable value (RV).

The RV of a property is a legally defined valuation provided by the Assessor, broadly based on the rental values the property could achieve. As such it is not a reflection of the profitability, turnover or output of the business. It is established at revaluation where the Scottish Assessors assess rateable values for all non-domestic properties in Scotland, taking account of the type and nature of the property. All non-domestic properties and their corresponding RVs are listed on the Valuation Roll, which is maintained by the Scottish Assessors.

NDR bills are calculated using the rateable value (RV) of non-domestic properties, multiplied by a poundage set nationally by Scottish Ministers, less any relief or exemption entitlement.

equation

For properties with a rateable value greater than £35,000, the Large Business Supplement (LBS) applies in addition to the poundage (the poundage is effectively increased slightly by adding the LBS).

Table 1.14 shows the composition of properties (and associated RV) on the Valuation Roll by property type. As at 1st April 2014, there were 221,292 properties with a total RV of £6.7 billion. Shops were the most prevalent type of property on the valuation roll, making up nearly a quarter (24%) of the number of properties and RV on the roll. Industrial subjects and offices are the next two largest categories in terms of numbers and RV. Together, these three categories account for 63% of properties on the valuation roll, and 58% of the RV.

Table 1.14 - Non-Domestic Rates Properties by Classification (as at 1 April 2014)

Number of properties Rateable value (£000s) % of properties on the Valuation Roll % of Rateable Value on the Valuation Roll
CATEGORY 1st April 2014 1st April 2014 1st April 2014 1st April 2014
Advertising 2,048 8,100 0.9% 0.1%
Care Facilities 3,030 104,337 1.4% 1.6%
Communications 324 15,212 0.1% 0.2%
Cultural 1,385 46,468 0.6% 0.7%
Education and Training 3,774 507,276 1.7% 7.6%
Garages and Petrol Stations 4,360 64,569 2.0% 1.0%
Health and Medical 3,172 204,015 1.4% 3.1%
Hotels 4,962 183,421 2.2% 2.7%
Industrial Subjects 46,642 1,124,139 21.1% 16.8%
Leisure, Entertainment, Caravans etc. 20,996 236,243 9.5% 3.5%
Offices 39,345 1,135,722 17.8% 17.0%
Other 13,315 91,374 6.0% 1.4%
Petrochemical 142 107,994 0.1% 1.6%
Public Houses 3,815 109,254 1.7% 1.6%
Public Service Subjects 9,921 317,384 4.5% 4.8%
Quarries, Mines, etc. 688 23,613 0.3% 0.4%
Religious 6,267 55,118 2.8% 0.8%
Shops 53,081 1,603,339 24.0% 24.0%
Sporting Subjects 3,369 17,738 1.5% 0.3%
Statutory Undertaking 656 725,399 0.3% 10.9%
TOTAL ALL NON-DOMESTIC PROPERTIES 221,292 6,680,715 100% 100%

Source: Scottish Assessors Valuation Roll, 1st April 2014

Table 1.15 provides a breakdown of properties on the Valuation Roll by local authority and RV band. In terms of the Small Business Bonus Scheme and the application of the Large Business Supplement, £18,000 and £35,000 represent the rateable value thresholds for small and large businesses respectively. Around 78% of all properties (172,540 properties) have a Rateable Value less than or equal to £18,000.

Table 1.15 - Non-Domestic Rates Subjects by Local Authority (as at 1 April 2014)1

Local Authority Rateable Value Band Total Non-Domestic Properties
<= £18,000 £18,001 to £35,000 > £35,000
Scotland 172,540 19,937 28,815 221,292
Aberdeen City 5,006 1,138 2,263 8,407
Aberdeenshire 9,866 796 1,032 11,694
Angus 4,040 357 396 4,793
Argyll & Bute 7,554 349 342 8,245
Clackmannanshire 1,315 123 143 1,581
Dumfries & Galloway 8,145 482 541 9,168
Dundee City 4,190 595 952 5,737
East Ayrshire 3,184 312 411 3,907
East Dunbartonshire 1,720 302 299 2,321
East Lothian 2,744 271 322 3,337
East Renfrewshire 1,267 216 217 1,700
Edinburgh, City of 13,398 2,407 3,907 19,712
Eilean Siar 2,051 107 113 2,271
Falkirk 3,595 475 678 4,748
Fife 10,317 1,210 1,593 13,120
Glasgow City 17,429 2,931 4,749 25,109
Highland 15,134 1,011 1,361 17,506
Inverclyde 1,768 210 306 2,284
Midlothian 2,204 256 364 2,824
Moray 3,954 251 361 4,566
North Ayrshire 4,149 391 486 5,026
North Lanarkshire 6,938 1,058 1,547 9,543
Orkney Islands 1,882 130 96 2,108
Perth & Kinross 7,051 589 714 8,354
Renfrewshire 4,711 609 942 6,262
Scottish Borders 6,236 419 412 7,067
Shetland Islands 1,737 110 151 1,998
South Ayrshire 3,786 417 555 4,758
South Lanarkshire 7,058 1,109 1460 9,627
Stirling 3,956 432 564 4,952
West Dunbartonshire 2,143 280 409 2,832
West Lothian 4,012 594 1,129 5,735

1. Includes a small percentage of properties with zero rateable value.

Source: Scottish Assessors Valuation Roll, 1st April 2014

Table 1.16 shows a time series of annual NDR Income, total Rateable Value, Poundage Rate and Large Business Supplement. Revaluations typically take place on a 5-year cycle and are intended to be 'revenue neutral'. As a consequence of the 2010 revaluation, the poundage was reduced from 48.1p in 2009-10 to 40.7p in 2010-11 and the total RV of non-domestic properties (the tax base) increased from £5.3 billion in 2009-10 to £6.6 billion in 2010-11. The next revaluation will take place in 2017.

Table 1.16 - Non-Domestic Rates Income, Total Rateable Values and Poundage Rate

2009-10 2010-111 2011-12 2012-13 2013-142
Non Domestic Rates Income (£m) 2,010 2,138 2,251 2,347 2,367
Total Rateable Value3 (£m) 5,299 6,612 6,678 6,718 6,716
Poundage Rate (pence) 48.1 40.7 42.6 45.0 46.2
Large Business Supplement4 (pence) 0.4 0.7 0.7 0.8 0.9

1. Revaluation took place in 2010
2. All income figures, including 2013-14, are the final audited income collected by councils.
3. Total rateable value is given at the start (1 April) of the relevant financial year
4. The Large Business Supplement is applied in addition to the poundage for properties with a rateable value over £35,000

Source: NDR Income - Non-domestic Rate Income Returns, Rateable Value - Scottish Assessors Valuation Roll as at 1st April

Table 1.16 also shows that the total RV has increased slightly since the 2010 revaluation from £6.61 billion at 1st April 2010 to £6.72 billion at 1st April 2013. This is due to the net impact of several factors including increases in the tax base from new properties or extension of existing properties and decreases as demolished properties are deleted from the valuation roll or as the RV is reduced as a result of appeals[2]. As Non-Domestic Rates bills in Scotland are directly related to the rateable values of individual non-domestic properties, changes in the total RV impact on the amount of NDR available for collection, along with other factors such as the poundage rate and backdated revaluation appeals losses which also affect the final income.

Inflation is a key driver of growth in NDR income as the poundage rate, set nationally by Scottish Ministers[3], is typically tied to the Retail Price Index (other than in the first year of a revaluation). NDR bills are calculated by multiplying the RV of a property by the poundage rate, and then applying discounts and exemptions. Large business properties (those with a RV greater than £35,000) also pay a supplement to the poundage rate, known as the Large Business Supplement (LBS), which is used to fund a portion of the Small Business Bonus Scheme (SBBS). The LBS was 0.9p in 2013-14. For the period 2012-13 to 2014-15, large retailers that sell both alcohol and tobacco also pay the Public Health Supplement (PHS) - an additional 13p on the poundage rate in 2013-14. These supplements increase the amount paid in NDR bills. Conversely, exempt properties (which do not pay rates), and relief schemes such as the Small Business Bonus Scheme can significantly reduce the amount paid in NDR bills, and therefore the NDR income.

Table 1.17 summarises the total number of properties and rateable value as at 1st April 2014 and the NDR income collected in 2013-14 by local authority (net of reliefs).

Table 1.17 - Non-Domestic Rates Properties, Rateable Values and Income By Local Authority1,4

Authority Non-Domestic
Properties2
April 2014
Non-Domestic
Rateable Values
April 2014 (£000s)
Non-Domestic Rate
income 2013-143 (£000s)
Scotland 221,292 6,680,715 2,366,885
Aberdeen City 8,407 447,933 178,271
Aberdeenshire 11,694 220,161 81,228
Angus 4,793 76,795 25,418
Argyll & Bute 8,245 89,218 28,544
Clackmannanshire 1,581 37,950 12,684
Dumfries & Galloway 9,168 118,755 41,532
Dundee City 5,737 188,943 62,180
East Ayrshire 3,907 81,741 25,210
East Dunbartonshire 2,321 67,649 21,691
East Lothian 3,337 68,969 21,637
East Renfrewshire 1,700 39,147 13,399
Edinburgh, City of 19,712 907,064 325,990
Eilean Siar 2,271 22,429 6,817
Falkirk 4,748 173,372 63,058
Fife 13,120 432,116 159,398
Glasgow City 25,109 980,686 322,438
Highland 17,506 305,860 106,356
Inverclyde 2,284 60,260 19,013
Midlothian 2,824 77,300 27,074
Moray 4,566 86,591 31,504
North Ayrshire 5,026 107,017 35,874
North Lanarkshire 9,543 297,916 101,280
Orkney Islands 2,108 25,982 8,303
Perth & Kinross 8,354 148,090 47,274
Renfrewshire 6,262 236,244 84,316
Scottish Borders 7,067 90,768 29,865
Shetland Islands 1,998 44,254 13,646
South Ayrshire 4,758 107,286 35,746
South Lanarkshire 9,627 638,862 244,337
Stirling 4,952 113,945 39,156
West Dunbartonshire 2,832 171,349 73,479
West Lothian 5,735 216,062 80,166

1. Rates bills for specific utilities are collected by specified councils on behalf of all 32 councils, and appear on the valuation roll for those councils: South Lanarkshire (Electricity), West Dunbartonshire (Gas), Fife (Water), Falkirk (Docks and Harbours), Highland (Railways), and Renfrewshire (Telecommunications). This increases the take for those authorities.

2. Includes properties with a zero rateable value

3. Final Audited income collected by councils.

4. Totals may not sum exactly due to rounding.

Source: Number of Properties and Rateable Value - Scottish Assessors Valuation Roll 1st April 2014;

NDR Income - Non-domestic Rate Income Returns provided by Councils

Table 1.17 shows geographical variations in the number of properties, rateable value and NDR income. It should be noted however that some councils have responsibility for collection of NDR for specific utilities as detailed in the footnote to the table. For these councils, the entries on the valuation roll and NDR income include Scotland-wide data for the specified utilities sectors. To avoid the need for revisions, only final (audited) NDR income figures are included in this publication. The deadline for NDR income returns was brought forward to allow audited 2013-14 NDR income data to be included.

Table 1.18 - Amount of Non-Domestic Rates Relief Provided by Relief Type1

£000s
2009-10 2010-11 2011-12 2012-13 2013-142
Unoccupied Property/Partly Unoccupied Property 153,361 145,936 157,862 169,134 146,496
Charities 122,132 136,731 151,276 164,979 173,623
Sports Clubs 11,604 11,476 12,059 12,431 12,911
Disabled persons relief 45,484 51,901 54,372 57,580 58,299
SBBS 108,420 123,259 134,719 150,196 161,002
Religious Properties 20,218 24,016 22,960 24,573 25,205
Rural Rate Relief 3,918 4,129 4,218 4,305 4,323
Renewable Energy Relief Scheme3 3,560 4,126 4,811 7,333
New Start4 130
Fresh Start5 189
Other6 19 4 43 10 63
Gross Amount7 465,157 501,013 541,635 588,018 589,574

1. Estimates include mandatory and discretionary elements of relief where applicable, but exclude backdated payments of relief

2. Reliefs for all years, including 2013-14, are final audited figures.

3. The Renewable Energy Relief Scheme was introduced at 1 April 2010.

4. The new start relief scheme was introduced at 1 April 2013 and will run for 3 years.

5. The fresh start relief scheme was introduced at 1 April 2013.

6. Other includes Hardship and Enterprise Areas.

7. Totals may not sum exactly due to rounding.

Source: Non-domestic Rate Income Returns

There are a number of types of NDR relief that reduce the NDR bill for qualifying properties. Table 1.18 shows the main types of relief available[4] and the amount of relief provided each year from 2009-10 to 2013-14.

The gross amount of relief provided has increased substantially from £465 million in 2009-10 to £590 million in 2013-14. Key reasons for this are increases in the poundage rate (due to normal annual inflation) and an increase in relief provided through the Small Business Bonus Scheme, with expansion of the scheme thresholds and greater awareness of the scheme likely to be contributory reasons. Other reasons for change are likely to include growth in the tax base over this period (i.e. an increase in the overall Rateable Value) and changes to amounts awarded for other reliefs (for example an increase in Charity Relief and the introduction of the new relief schemes).

The total NDR income collected by Local Authorities is pooled at the Scotland level[5]. Each council reports the NDR collected to the Scottish Government to be included in the central pool. The amount to be re-distributed to each authority 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.

From 1st April 2011, the distribution methodology provides that Councils retain what it is estimated they can collect in business rates (rather than the previous policy where it was redistributed on the basis of population shares). As the combined total of NDR income and General Revenue Funding (GRF) provided to councils is guaranteed by the Scottish Government, any reduction in the amount of NDR collected is compensated for by a corresponding increase in GRF and vice versa. Any surpluses or deficits are paid out or recovered from Councils in the calculation of future years distributable business rates totals. The DA 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 calculation of the distributable amount for 2013-14 is given in Annex F and the 2013-14 distributable amount per Local Authority is shown in Table 1.19.

Table 1.19 - Amount of Non-Domestic Rates Distributed to Each Local Authority, 2013-14

Non-Domestic Rate Income (£000s)
Scotland 2,435,000
Aberdeen City 177,084
Aberdeenshire 78,947
Angus 25,764
Argyll & Bute 28,492
Clackmannanshire 11,872
Dumfries & Galloway 44,549
Dundee City 53,951
East Ayrshire 28,546
East Dunbartonshire 22,885
East Lothian 23,134
East Renfrewshire 13,924
Edinburgh, City of 334,630
Eilean Siar 6,475
Falkirk 68,291
Fife 145,816
Glasgow City 333,668
Highland 114,154
Inverclyde 20,869
Midlothian 26,665
Moray 30,668
North Ayrshire 36,943
North Lanarkshire 109,179
Orkney Islands 8,827
Perth & Kinross 50,928
Renfrewshire 97,709
Scottish Borders 28,503
Shetland Islands 16,177
South Ayrshire 39,642
South Lanarkshire 273,224
Stirling 29,948
West Dunbartonshire 72,189
West Lothian 81,347

Source: Local Government Finance (Scotland) Order 2013

1.3.3 Customer and Client Receipts

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 1.20 below.

Table 1.20 - Customer and Client Receipts - 2009-10 to 2013-14

£ thousands
2009-10 2010-11 2011-12 2012-13 2013-14b
Education 87,115 95,006 115,017 113,355 120,563
Cultural & Related Services 85,516 81,521 77,479 70,728 71,185
Social Work 246,014 251,167 268,101 276,450 276,012
Roads & Transport 165,941 146,068 171,674 154,117 175,218
Environmental Services 123,164 120,400 117,767 117,969 117,457
Planning & Development Services 120,146 97,897 118,518 116,541 121,077
Central Services 144,819 113,862 143,521 110,889 131,709
Non-HRA Housing 189,150 164,339 179,116 165,412 160,800
Trading Services 66,992 66,852 63,526 58,045 69,843
Total GF Customer and Client Receipts excluding Police & Fire 1,228,857 1,137,112 1,254,719 1,183,506 1,243,864
Police, Fire & Emergency Planning 93,043 55,098 66,575 111,992
Total GF Customer and Client Receipts 1,321,900 1,192,210 1,321,294 1,295,498 1,243,864
HRA1 955,710 979,571 965,920 1,034,306 1,073,362
Common Good Fund 9,073 7,168 10,809 11,113 9,867
Road Bridges 133 89 82 80 166
Total Customer and Client Receipts 2,286,816 2,179,038 2,298,105 2,340,997 2,327,259

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

b. Following the Police and Fire Reform (Scotland) Act 2012 figures from 2013-14 may not be comparable with previous years.
See section 5.2 for details.

Source: Local Financial Returns (LFRs)

Contact

Email: Euan Smith

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