| Description | Details of the revenue and capital grants which will be provided by the Scottish Executive to local government over the next 3 years. |
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| ISBN | N/A (Web Only) |
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| Official Print Publication Date | |
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| Website Publication Date | December 23, 2004 |
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LOCAL GOVERNMENT FINANCE - REVENUE AND CAPITAL GRANTS
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Scottish Executive
Finance and Central Services DepartmentLocal Government Constitution & Funding Division Finance Circular No 9/2004
The Chief Executive, Convention of Scottish Local Authorities Chief Executives of Scottish Local Authorities | Victoria Quay
Edinburgh EH6 6QQ Telephone: 0131-244 7002
Fax: 0131-244 7020
Andrew.Rushworth@scotland.gsi.gov.uk
http://www.scotland.gov.uk 22 December 2004 |
Dear Chief Executive
LOCAL GOVERNMENT FINANCE - REVENUE AND CAPITAL GRANTS
1. This Circular provides details of the revenue and capital grants which will be provided by the Scottish Executive to local government over the next 3 years. Finance Circular No. 8/2004 provided details of the three-year local government finance settlements for core services for 2005-06 to 2007-08 and paragraph 4 of that circular explained that details of revenue and capital grants outwith the main settlement would be provided separately. The following information fulfils that commitment.
2. The overall funding position as a result of Spending Review 2004 is summarised in the table below:
| 2004-05
m | 2005-06
m | 2006-07
m | 2007-08
m | Cumulative % Increases |
Revenue Grant Outwith AEF from Portfolios | 987 | 1,093 | 1,083 | 1,122 | 13.7% |
Capital Grants from Portfolios | 344 | 359 | 434 | 454 | 32.0% |
Supported Borrowing | 304 | 304 | 298 | 305 | 0.3% |
Total Excluding AEF | 1,635 | 1,756 | 1,815 | 1,881 | 15.0% |
AEF | 7,737 | 8,081 | 8,343 | 8,541 | 10.4% |
Total | 9,372 | 9,837 | 10,158 | 10,422 | 11.2% |
3. The AEF and Supported Borrowing totals and individual allocations were provided in Finance Circular No 8/2004 and the information contained in this circular provides details of the additional revenue and capital grant support provided outwith the core settlement.
Revenue Grants
4. The table above shows that local government will receive 1.1 billion in revenue grants outwith the local government settlements in each of the next three years in support of specific policy initiatives. These grants have been provided in support of specific initiatives.
5. A breakdown of all the funding streams that make up these totals for 2005-06 to 2007-08 (2004-05 shown for comparative purposes) is set out at Annex A.
Capital Grants
6. Certain services, which were formerly supported by specific consent allocations, are now supported, together with some new ones, by capital grants. Authorities are free to supplement these grants with borrowing under the prudential regime if they so wish.
7. The total level of confirmed support through capital grants will be 358.965m for 2005-06, 434.085m for 2006-07 and 454.380m for 2007-08. The arrangements for local authorities to receive these grants, as listed in Annex B, have been, or will be, notified to authorities by each of the relevant Scottish Executive divisions which administer the grants.
8. The table at Annex B shows the capital grants for 2005-06 to 2007-08 (2004-05 shown for comparative purposes).
9. Capital expenditure by authorities, the sources from which it derives, and future forecasts of expenditure, will continue to be monitored through the Capital Payment Returns in order to feed into national data collection by HM Treasury.
Contacts
10. A separate copy of this Circular has been sent by e-mail to your Director of Finance and to Brenda Campbell at COSLA.
11. Enquiries about individual grants should be addressed in the first instance to the main contact point listed in each of the two Annexes. General enquiries about the local government finance settlement should be addressed to the relevant person named in Finance Circular No 8/2004.
Yours sincerely
GRAHAM OWENSON
Local Government Constitution and Funding
REVENUE GRANTS OUTWITH CORE FUNDING ANNEX A
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | Scottish Executive Contact |
m | m | m | m |
Education |
Changing Children's Services Fund | 60.500 | 65.000 | 65.000 i | 65.000 ii | Jim Stephen
(0131 244 0977) |
Teachers Induction Scheme | 9.500 | 8.500 | 8.500 | 8.500 | John Gunstone
(0131 244 0998) |
Social Work Fast Track Graduate Recruitment Scheme | 2.500 | 2.500 | 1.000 | 0 | Maggie Tierney
(0131 244 0661) |
Incentive Scheme | 0.500 | 1.200 | 1.400 | 1.400 | Maggie Tierney
(0131 244 0661) |
Schools Building PPP | 10.000 | 100.000 | 80.000 | 100.000 | Graeme Stuart
(0131 244 0944) |
Health and Community Care |
Delayed Discharges iii | 29.700 | 29.000 | 29.000 | 29.000 | Shaun Eales
(0131 244 5430) |
Enterprise and Lifelong Learning |
Education Maintenance Allowance (EMA) iv | 13.000 | 28.400 | 37.100 | 42.800 | Chris Graham
(0141 242 0192) |
European Regional Development Fund (ERDF) v | 45.800 | 40.600 | 40.600 | 40.600 | Graeme Watson
(014124225479) |
European Structural Funds (ESF) vi | 18.600 | 16.600 | 16.600 | 16.600 | Graeme Watson
(014124225479) |
Transport |
Bus Route Development Grant | 2.500 | 7.000 | 6.500 | 6.500 | Tom Macdonald
(0131 244 1502) |
Rural Public Passenger Grant Scheme | 5.800 | 6.100 | 6.300 | 6.400 | George Davidson
(0131 244 7983) |
School Travel Co-ordinators | 1.000 | 1.000 | 1.025 | 1.051 | Ewan Swaffield
(0131 244 0839) |
Concessionary Travel | 13.000 | 13.000 | 13.000 | 13.000 | Tom Macdonald
(0131 244 1502) |
Strathclyde Passenger Transport Authority | 72.500 | 72.500 | 72.500 | 72.500 | Ian Turner
(0141 244 5167) |
Environment |
Strategic Waste Fund vii | 90.030 | 111.530 | 120.133 | 132.633 | Gordon Jackson
(0131 244 7660) |
Communities |
Better Neighbourhood Services Fund (from 05/06 see Community Regeneration Fund) | 31.200 | 0 | 0 | 0 | Richard Rollison
(0131 244 0366) |
Social Inclusion Partnerships (from 05/06 see Community Regeneration Fund) | 68.700 | 0 | 0 | 0 | Richard Wallace/Jonathan Atherton
(0131479 5246/5364) |
Community Regeneration Fund (on behalf of Community Planning Partnership) | 0 | 104.448 | 106.000 | 107.272 | Richard Wallace/Jonathan Atherton
(0131479 5246/5364) |
Vacant and Derelict Land Fund (re-classification from revenue to capital from 2005-06) viii | 8.000 | 0 | 0 | 0 | Christina Bruce
(0131 244 5595) |
Homelessness Task Force | 20.000 | 20.000 | 20.505 | 21.010 | Lesley Sheppard
(0131 244 7246) |
Furniture Grants | 3.000 | 3.000 | 3.000 | 3.000 | Anna Donald
(0131 244 0933) |
Glasgow Hostels Decommissioning | 15.000 | 15.000 | 15.000 | 15.000 | Leslie Sheppard
(0131 244 7246) |
Supporting People ix | 428.000 | 406.000 | 399.000 | 399.000 | Norrie Murray
(0131 244 0380) |
Housing Support Grant | 10.152 | 9.000 | 7.000 | 7.000 | Helen Jones
(0131 244 5570) |
Justice |
Tackling ASB | 27.550 | 32.550 | 33.650 x | 34.180 xi | Patricia Scotland
(0131 244 4918) |
Enterprise and Lifelong Learning |
Determined to Succeed - (Still to be announced - not included in totals) | 10.000 | 18.000 | | | Michael Cross
(0141 242 0107) |
|
Total Revenue Grants | 986.532 | 1092.928 | 1082.813 | 1122.446 | |
CAPITAL GRANTS ANNEX B
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | Scottish Executive Contact |
m | m | m | m |
Police | 31.415 | 31.415 | 31.415 | 31.415 | Neil MacLennan
(0131 244 2143) |
Fire | 23.600 | 23.600 | 24.600 | 24.600 | John Nicholls
(0131 244 2163) |
Public Transport Fund and Successor | 43.000 | 19.000 | 30.000 | 30.000 | Alasdair Robertson
(0131 244 0849) |
Strathclyde Passenger Transport Executive xii | 11.000 | 11.000 | 0 | 0 | Ian Kernohan
(0131 244 0840) |
Tay Bridge | 2.300 | 2.300 | 2.300 | 2.300 | Keith Main
(0131 244 0361) |
Forth Estuary Transport Authority | 0 | 0 | 2.000 | 2.000 | Keith Main
(0131 244 0361) |
20 mph Speedzones and Homezones | 11.000 | 11.000 | 11.300 | 11.600 | Ann Whatcott
(0131 244 0837) |
Piers & Harbours | 2.000 | 2.000 | 2.000 | 2.000 | Alan McPherson
(0131 244 7969) |
Regional Transport Capital Funding | 0 | 0 | 46.600 | 46.300 | Ian Kernohan
(0131 244 0840) |
Cycling, Walking and Safer Streets | 8.200 | 8.650 | 8.870 | 9.090 | Ewan Swaffield
(0131 244 0839) |
Flood Prevention and Coast Protection | 14.200 | 14.000 | 33.000 | 42.000 | Judith Tracey
(0131 244 0213) |
Air Quality Monitoring | 0.300 | 0.300 | 0.300 | 0.300 | Andrew Taylor
(0131 244 7813) |
Land Decontamination | 15.720 | 5.000 | 5.000 | 10.000 | Bob Cuthbertson
(0131 244 0394) |
Private Sector Housing Grant | 70.000 | 72.000 | 65.250 | 65.500 | Roger Harris
(0131 244 7952) |
Assistance to owners affected by Glasgow stock transfer | 5.000 | 10.000 | 17.000 | 17.000 | Douglas Hamilton
(0131 244 5588) |
Vacant and Derelict Land (re-classification from revenue to capital from 2005-06) | 0 | 12.000 | 12.100 | 12.200 | Christina Bruce
(0131 244 5595) |
Schools Fund | 76.700 | 96.700 | 101.350 | 106.050 | Graeme Stuart
(0131 244 0944) |
Cities Growth Fund | 30.000 | 40.000 | 41.000 | 42.025 | Robin Benn
(0131 244 4956) |
|
Total Capital Grants | 344.435 | 358.965 | 434.085 | 454.380 | |
EXPLANATORY NOTES
i To be confirmed.
ii To be confirmed.
iii The distribution method employed here means that NHS boards are the main recipients of this grant rather than Local Authorities directly.
iv These sums will be paid to schools and further education colleges.
v A budget review is currently being undertaken and it is expected these figures will change dramatically.
vi A budget review is currently being undertaken and it is expected these figures will change dramatically.
vii This is partly revenue, partly capital.
viii The three Local Authorities (Dundee, Glasgow and North Lanarkshire) will be acting as grant recipients for the V+DL Fund. The money will be used to fund projects agreed by local partnerships involving the Local Authority, local enterprise company and Community Scotland.
ix A marginal adjustment to the figures for Supporting People is expected to be announced shortly following representations by COSLA to the Minister for Communities.
x Ministers still to agree split between direct Local Authority allocations and centrally funded initiatives.
xi Ministers still to agree split between direct Local Authority allocations and centrally funded initiatives.
xii Funding support for SPTE from 2006-07 has been included within the Regional Transport Capital Funding in anticipation of the proposed Regional Partnerships statutory bodies being granted Parliamentary approval in 2006.