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Financial Scrutiny Unit Briefing Subject profile – local government in Scotland 23 August 2016 16/69 Allan Campbell and Evie Burrowes This subject profile provides an introduction to local government in Scotland, including information on the organisation and functions of local authorities, local government finance, and potential future developments in this parliamentary session. Population level - 2015 By Local Authority Between 21,670 and 51,360 Between 51,360 and 136,130 Between 136,130 and 261,960 Between 261,960 and 606,340

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Page 1: By Local Authority Population level - 2015 ... councillors have four main roles (Scottish Government 2016f), ... Figure 5: local authorities: main areas of responsibility Source:

The Scottish Parliament and Scottish Parliament Infor mation C entre l ogos .

Financial Scrutiny Unit Briefing

Subject profile – local government in Scotland

23 August 2016

16/69

Allan Campbell and Evie Burrowes

This subject profile provides an introduction to local government in Scotland, including information on the organisation and functions of local authorities, local government finance, and potential future developments in this parliamentary session.

Population level - 2015By Local Authority

Between 21,670 and 51,360

Between 51,360 and 136,130

Between 136,130 and 261,960

Between 261,960 and 606,340

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CONTENTS

EXECUTIVE SUMMARY .............................................................................................................................................. 3

ORGANISATION .......................................................................................................................................................... 4

STRUCTURE ........................................................................................................................................................... 4 HISTORY AND LEGISLATIVE BASIS ..................................................................................................................... 4 LOCAL AUTHORITY POPULATION ........................................................................................................................ 4 LOCAL AUTHORITY DECISION MAKING .............................................................................................................. 7

COUNCILLORS............................................................................................................................................................ 7

ROLE OF COUNCILLORS ....................................................................................................................................... 7 LOCAL GOVERNMENT REPRESENTATION ......................................................................................................... 8 MULTI WARD SYSTEM ........................................................................................................................................... 9 LOCAL AUTHORITY EMPLOYMENT...................................................................................................................... 9

POWERS AND FUNCTIONS ..................................................................................................................................... 10

AREAS OF RESPONSIBILITY ............................................................................................................................... 10 TYPES OF POWERS ............................................................................................................................................. 11 PARTNERSHIPS AND COMMUNITY PLANNING ................................................................................................ 12

Community planning .......................................................................................................................................... 12 Arm’s Length External Organisations ................................................................................................................ 13 Integration of health and social care .................................................................................................................. 13

FINANCE .................................................................................................................................................................... 13

FUNDING METHOD............................................................................................................................................... 13 Revenue ............................................................................................................................................................. 13 Capital and borrowing ........................................................................................................................................ 14 Allocation process .............................................................................................................................................. 14

COUNCIL TAX ....................................................................................................................................................... 15

ANNEX ....................................................................................................................................................................... 17

TABLE 1: POPULATION BY COUNCIL, 2015 ....................................................................................................... 17 TABLE 2: TOTAL LOCAL GOVERNMENT EMPLOYED, EXCLUDING POLICE AND FIRE ............................... 18

SOURCES .................................................................................................................................................................. 20

RELATED BRIEFINGS .............................................................................................................................................. 22

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EXECUTIVE SUMMARY

Local government in Scotland is made up of 32 unitary local authorities. Although the powers of local authorities have been reformed in recent years, this structure has remained unchanged since 1996. This briefing provides information on:

the history and legislative basis of local government

population of Scottish local authorities

how local authorities make decisions

the role of councillors

the role of COSLA and the Scottish Local Government Partnership

how the multi-ward system works

figures on local authority employment

powers and functions of local authorities

partnerships and community planning

how local authorities are funded

plans to reform the council tax. .

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ORGANISATION

STRUCTURE

Local government in Scotland is made up of 32 local authorities. Each local authority represents a geographical region in Scotland and is responsible for providing a range of public services for the local population.

Councillors are elected to local authorities by the electorate of the area they represent (known as a council ward). Local government elections are generally held every 4 years, with the exception of three 5-year terms (2007-2012, 2012-2017 and 2017-2022) to avoid local government and Scottish government elections occurring in the same year.

HISTORY AND LEGISLATIVE BASIS

The current structure of local government is based on the Local Government etc (Scotland) Act 1994. Prior to this, local government had gone through a number of significant changes to its structure and powers. From 1889 through to 1975 (subject to a number of minor reforms), there were 37 counties covering Scotland, including counties of city comprising each of the four major cities. The counties were all-purpose authorities responsible for a wide range of services. Outside the counties of city, the counties contained 21 large burghs, which had a wide range of functions and were generally independent of the counties, and 176 small burghs which had limited powers including housing, but were generally serviced by the counties, although independent of them. The remaining area of the counties was divided into 196 districts with very limited powers (also known as landward districts).

During the 1960s, there was a widespread recognition that the structure of local government needed reform. The Royal Commission on Local Government in Scotland, chaired by Lord Wheatley, published its report in 1969. The Wheatley Commission outlined a two-tier structure. The Commission’s proposals were introduced by the Local Government (Scotland) Act 1973, which created nine Regions, 53 Districts and three Island Areas and removed all previous burghs and landward districts. The new structure came into effect in 1975.

The Local Government etc. (Scotland) Act 1994 removed the 9 Regions and 53 Districts, and 29 single-tier bodies were created. The 3 Island Areas (Orkney, Shetland and Eilean Siar) still exist (Scottish Government 2015b).

LOCAL AUTHORITY POPULATION

Local authorities in Scotland differ significantly in terms of population size, ranging from 21,670 in Orkney to 606,340 in Glasgow. The average population size of a council in Scotland is 167,906 (National Records of Scotland 2015). Figures 1 and 2 below show the population of all 32 local authorities.

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Figure 1: Scottish local authorities – 2015 population

Source: National Records of Scotland 2015, Data in Annex Table 1.

606,340

498,810

368,080

338,260

316,230

261,960

234,110

230,350

178,550

174,560

158,460

149,930

149,670

148,210

136,130

122,060

116,900

114,030

112,400

106,960

103,050

95,510

92,940

92,830

89,590

87,390

86,890

79,500

51,360

27,070

23,200

21,670

Glasgow City

Edinburgh

Fife

North Lanarkshire

South Lanarkshire

Aberdeenshire

Highland

Aberdeen City

West Lothian

Renfrewshire

Falkirk

Perth & Kinross

Dumfries & Galloway

Dundee City

North Ayrshire

East Ayrshire

Angus

Scottish Borders

South Ayrshire

East Dunbartonshire

East Lothian

Moray

East Renfrewshire

Stirling

West Dunbartonshire

Midlothian

Argyll & Bute

Inverclyde

Clackmannanshire

Eilean Siar

Shetland Islands

Orkney Islands

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Figure 2: Scottish local authorities – 2015 population - map

Population level - 2015By Local Authority

Between 21,670 and 51,360

Between 51,360 and 136,130

Between 136,130 and 261,960

Between 261,960 and 606,340

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LOCAL AUTHORITY DECISION MAKING

Local councils in Scotland are led by the Leader of the council and a civic leader (Provost or Convenor) is elected by the local authority. The civic leader is known as the Lord Provost in Glasgow, Edinburgh, Aberdeen and Dundee.

Committees are formed as a result of the full council meeting of the local authority. The full council meeting is the governing body of the local authority, where all councillors meet to debate and take the key decisions of the authority. This involves the election of the Leader and civic leader. Some local government decisions can only be made by the full council. These include setting the annual budget and council tax, electing the convenor and deputy convenor and appointing councillors to committees.

Local government decision making is exercised predominantly via committees and sub-committees. The Local Government (Scotland) Act 1973 permitted authorities to delegate the decision making process to committees and sub-committees, the majority of which are drawn from elected councillors. Other committee members are appointed as specialists from the community, such as teachers, business leaders and leaders of religious institutions. These are often non-voting members and act as a source of expertise and knowledge in a particular field.

Individual councillors have no power to make policy. Corporate decisions are required by all local authorities. It is the responsibility of individual local authorities to structure the council and form a decision making process that is appropriate for the local authority. The Local Government (Scotland) Act 1973 established the Accounts Commission to scrutinise and audit the accounts and spending of councils (Marsh R, 2013)

COUNCILLORS

ROLE OF COUNCILLORS

Scottish local authorities are responsible for the provision of a wide range of public services. Within this responsibility, councillors have four main roles (Scottish Government 2016f), as set out in Figure 3 below.

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Figure 3: Roles of councillors

LOCAL GOVERNMENT REPRESENTATION

In 1975, the Convention of Scottish Local Authorities (COSLA) was set up to act as a national voice for local government in Scotland. It currently represents 28 out of the 32 local authorities on a Scottish, UK and European level. COSLA works with the Scottish Government and Scottish Parliament to influence public policy and represent the views of Scottish communities. The organisation encourages political consensus and continuous improvement (COSLA 2015).

The Scottish Local Government Partnership (SLGP) was established in March 2015. This organisation was founded by and represents the four remaining local authorities – Glasgow, Renfrewshire, South Lanarkshire and Aberdeen. These council areas represent 25% of the Scottish population. SLGP represents these councils on priority issues that affect Local Government and provide advice and support to members on a range of policy issues (SLGP 2015).

At present, the Scottish Government only negotiates with COSLA on budgetary and other national matters. While the SLGP receives relevant papers, it does not negotiate on behalf of member councils.

Executive Decision Making

Involves participating in the full meeting of the council as well as policy making

and ensuring public services are executed

Scrutinising Decisions

Involves scrutinising decisions made within the council in political bodies such

as committees. This involves investigating current policies and service

provisions of the council to ensure accountability and efficiency. If necessary,

recommendations can be made to the Council Executive or full council meetings.

Regulatory Functions

Involves a quasi-judicial role meaning that councillors must act as an

arbitrator. This is important when decisions are non-political, such as

planning applications.

Representation

Requires councillors to represent their ward.This involves community-based

meetings and responding to interest groups in order to address issues of the

local area. This role could be extended to forums and meetings related to local

issues of the council.

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MULTI WARD SYSTEM

Councillors are elected to local authorities by the electorate of the geographical region (council ward). Councils have multiple electoral wards which are electoral districts within a local authority area.

Since proportional representation was introduced in 2007, council wards have three or four elected councillors instead of a single member and there are a total of 1,223 councillors in Scotland (National Records of Scotland, 2016). For example, in Renfrewshire council, there are 40 elected councillors to represent 11 electoral wards (Renfrewshire Council 2016).

In May 2016, the Local Government Boundary Commission for Scotland (LGBCS) submitted its Fifth Review. The LGBC reviews the boundaries and electoral wards of local authority areas. It is the responsibility of Scottish Ministers to implement the Final Recommendations and they can modify or reject them at their discretion. The Final Recommendations published in May outlined 351 wards and 1,219 councillors across Scotland, an overall decrease of 2 wards and 4 councillors (LGBCS 2016b). At the time of publication, the Government has not confirmed whether it will implement the LGBCS’s recommendations.

LOCAL AUTHORITY EMPLOYMENT

In 2013, police and fire services in Scotland were reallocated from local government to central government. This resulted in approximately 29,000 employees shifting from local government to the new central forces (Scottish Government 2016d). So, when looking at local government employment over time, it is important to exclude police and fire employees from all years, to allow for the most accurate comparison.

Local government employment in Scotland peaked in the first quarter of 2006 with headcount employment of 243,200 (excluding police and fire). This figure began to fall in 2007 and 2008 and has gradually decreased continuously. The final quarter of 2015 displayed the lowest recorded employment rate of Scottish local government since 2000 with 199,300 employed (Scottish Government 2016e), as shown in Figure 4 below.

In addition, many councils have transferred services (and employees) to Arms-Length External Organisations in recent years (discussed below), but data is not available on the numbers of staff involved. So, if including ALEO staff, overall headcount is likely to be higher than set out in figure 4, but at present this is not possible to quantify.

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Figure 4: local authority employment, excluding police and fire

Source: Scottish Government 2016e, data in Annex Table 2.

POWERS AND FUNCTIONS

AREAS OF RESPONSIBILITY

Local councils are responsible for providing public services to the local community. The major areas of local government responsibility are set out in Figure 5 below.

180,000

190,000

200,000

210,000

220,000

230,000

240,000

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

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Q2

Q3

Q4

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Q2

Q3

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Q4

2000 2001 2002 2003 2004 2005 2006 2007r 2008r 2009 2010 2011 2012 2013 2014 2015

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Figure 5: local authorities: main areas of responsibility

Source: adapted from the City of Edinburgh Council, 2016.

TYPES OF POWERS

The powers of local authorities are legally binding and can be divided into 3 main forms:

1. Mandatory Duties - Specific powers of councillors that are required to be met. For example, it is the responsibility of the local authority to provide compulsory local authority schooling for all children aged 5-16.

2. Permissive Powers - Powers of the local authority are not compulsory but are permitted. For example, economic development is a power of local councils but is not required.

3. Regulatory Powers – Powers of the local authority to monitor businesses operating in the community to avoid the exploitation of consumers, such as taxi licenses and trading standards.

It is likely that the powers and functions of local government will change during this parliamentary session. The SNP’s 2016 Scottish election manifesto stated that “we want to re-invigorate local government by reconnecting it with communities” and that “we will consult on and introduce a Bill that will decentralise local authority functions, budgets and democratic oversight to local communities.” Furthermore, the Government outlined an Islands Bill that will be developed “to reflect the unique needs of these communities and implement our ten-point

Education –

the provision of schools and nurseries as well

as acting as an advisory agent for educational

matters and community learning

Environmental Protection –

introducing and maintaining a local authority

recycling scheme, educating the local community

on recycling and environmental awareness and

implementing waste reduction strategies

Social Care –

providing care for the elderly, people with

disabilities, mental health problems and

addiction as well as an advisory agent for

support

Roads and Transport –

dealing with parking related issues such as

permits and tickets, improvement and

maintenance of roads, pavements and cycle

paths as well as public transport

Economic Development –

setting standards for business activities

within a local authority in addition to licenses

and permits, creating voluntary opportunities

and promoting local job creation

Housing and Planning –

provision of council housing, reducing

homelessness, providing advice and support to

private tenants as well as dealing with planning

applications

Waste Management –

introducing a bin collection plan, provision

of local council bins and dealing with litter

Cultural and Leisure Services –

provision and sustainability of museums,

galleries, monuments, sports centres as well as

promoting culture and sport performance.

P

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manifesto for our islands.” This aims to devolve powers to local communities. The manifesto also states that the Government will “set councils a target of having at least 1 per cent of their budget subject to Community Choices budgeting,” which will be supported by a Community Choices Fund (SNP 2016).

PARTNERSHIPS AND COMMUNITY PLANNING

In some cases, local councils choose to create a partnership with other local councils in the form of a Joint Board or Joint Committee. This is particularly prevalent when the issue relates to more than one council area, such as the Tay Road Bridge. (Scottish Government, 2015)(c)

Community planning

In other cases, as a result of the Local Government in Scotland Act 2003, local councils are required to collaborate with local bodies to deliver services. For example, collaborating with education boards to ensure an efficient education service is provided. This is referred to as Community Planning.

This 2003 framework integrates three types of bodies to ensure high quality provision of public services:

1. Local Authorities – their role is to plan, initiate and implement Community Planning and exert a facilitation role with the local community

2. Core Partners – these are the specialist bodies in the policy area, such as Health Boards and Enterprise Networks

3. Scottish Ministers – their role is to promote and ensure the requirement of Community Planning

The Community Empowerment (Scotland) Act 2015 (Part 2) includes provision to reform CPPs. Under Part 2 of the Act community planning has a clear purpose, to improve local outcomes, whilst acting with a view to reducing inequalities. It places Community Planning Partnerships (CPPs) on a statutory footing and imposes duties on CPPs and partners around the planning and delivery of local outcomes, and securing the participation of community bodies throughout the process of community planning. It also introduces duties to prepare locality plans for localities in which communities experience the poorest outcomes. CPPs will have to produce “locality plans” at a more local level for those areas they identify as experiencing significant disadvantage. Each CPP must have at least one locality plan – they may have many – this will be founded on the CPP making use of their collaborative understanding of needs circumstances and opportunities to identify localities. The Act promotes a shared leadership model and places duties to take reasonable steps to facilitate effective and efficient community planning on a wider range of named governance partners in section 13. Although it was passed by the Parliament in 2015, these provisions are not yet in force. The Government consultation on the implementation of these provisions closed on 19 June 2016. It is expected that subordinate legislation will be laid before the end of 2016 implementing Part 2 of the Act.

In the SNP’s 2016 manifesto, there are plans to: “review and reform the role of Community Planning Partnerships so they are better placed to drive reform, including through use of citizens’ panels and town hall meetings.” It is not clear at present what form these reforms will take, and whether they will need primary legislation.

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Arm’s Length External Organisations

Local authorities often delegate some of their functions to Arm’s Length External Organisations (ALEOs). These are companies, trusts and other bodies that are separate from the local authority but are subject local authority control or influence. Examples of the services they deliver include leisure, transportation, property development, and more recently, care services (Audit Scotland, 2011). The topic of ALEOs has been subject of much discussion in recent years, in particular in the Session 4 Local Government and Regeneration Committee’s report.

Integration of health and social care

Legislation to implement health and social care integration, passed by the Scottish Parliament in February 2014, came into force on 1 April 2016. This brings together NHS and local council care services under one partnership arrangement for each area. In total 31 local partnerships have been set up across Scotland and they will manage almost £8 billion of health and social care resources. NHS and local council care services will be jointly responsible for the health and care needs of patients, to ensure that those who use services get the right care and support whatever their needs, at any point in their care journey (Scottish Government 2016c).

FINANCE

Local Government finance is a complex and technical area. The following sections provide an overview of how local authorities are funded.

FUNDING METHOD

The method for funding local authorities is described in detail in a SPICe briefing paper for the Local Government and Regeneration Committee, issued in March 2014 (Berthier 2014). Local authority finance is split between revenue and capital expenditure. The following is a brief summary of the funding method.

Revenue

The Scottish Government provides approximately 82% of local authority net revenue funding and the remainder is met largely from the council tax collection. Revenue funding comprises three elements:

General Revenue Grant

Non-Domestic Rates Income

Specific revenue grants. The Scottish Government’s Public Finance Manual (Scottish Government 2012) describes the current system of revenue funding allocations:

“The total revenue funding is distributed between Scotland's 32 local authorities using a "needs-based" grant distribution system developed over many years through consultation between central and local government. The system recognises key factors which impact on councils' relative revenue expenditure needs. Grant distribution is calculated on the basis of councils' Total Estimated Expenditure (TEE), funded from both grant and local taxation. Councils' expenditure needs are split between expenditure on services and debt servicing (loan & leasing charges).”

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Revenue allocation is based on a complex distribution formula, set out in the Scottish Government’s Green Book on Grant Aided Expenditure (Scottish Government 2016g). The allocation is based on:

a range of regularly updated series of statistical measures, including for example population statistics and numbers of pupils

an assessment of costs of delivering services in different locations, for example the higher costs of some services in rural areas.

The Scottish Government and COSLA joint review group (Scottish Government 2011) was set up in 2008, following the introduction of the Concordat (Scottish Government 2007) which removed 60% (now over 90%) of ring-fenced grants. The Group made a number of specific recommendations, but concluded that “the existing distribution methodology, while perceived externally as being complex, not easily understood and open to misinterpretation, is deemed to be generally fair” (Scottish Government 2011). In June 2016, the Scottish Government published Delivering Excellence and Equity in Scottish Education: A Delivery Plan for Scotland. This delivery plan stated that:

“We will begin developing proposals for a fair and transparent national funding formula immediately and will listen to the views of teachers, parents, system leaders, local authorities and communities through the Governance Review. Building on the responses to this review we will consult on proposals for a funding formula in March 2017.”

It is not clear how this review of the education element of the local government funding formula will affect the overall funding formula.

Capital and borrowing

Capital investment by local authorities is largely funded through prudential borrowing and central government grants. Local authorities can undertake capital investment “as long as their capital spending plans are prudent, affordable and sustainable” (Scottish Government 2012). In doing so they are required to comply with the CIPFA Prudential Code for Capital Finance. The Scottish Government supports the debt servicing costs of some local authority borrowing to fund capital investment (historical debt), leasing payments and a few approved early Public Private Partnership (PPP) projects.

Local authorities have the power to borrow for the purposes set out in the Local Authority (Capital Finance and Accounting) Regulations 2016. These Regulations came into force on 1 April 2016. Regulation 2 sets out the purposes for which a local authority may borrow. In essence the borrowing is restricted to capital expenditure, either of the local authority itself, or grant aiding the capital expenditure of a third party. A local authority may also borrow for treasury management activities – i.e. to manage the cash flow of the authority. The 2016 Regulations are silent on the form of borrowing. This is a matter for a local authority to decide.

Allocation process

The timetable for the process of allocating funds to local authorities is dependent on timings of the UK and Scottish budget processes. Often a delay in either process causes a knock-on delay in the process for local authority allocations. But, in a standard year, the process runs as set out in Figure 6 below.

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Figure 6: Local authority allocations – standard timeline

The Local Government Committee has engaged with the allocations/budget process in different ways in the past. The Committee has occasionally looked at the allocations, but has mostly confined itself to examining the budget total for local government, and the commitments required by the Government. It has also, on occasion, chosen to “mainstream” budget scrutiny, by focussing on financial issues throughout the year in its inquiry and bill work, and then reporting on this during the budget process.

COUNCIL TAX

Council Tax is the system of local taxation that is used to part-fund local authorities. It was introduced in 1993 to replace the Community Charge (known as the “poll tax”) and has remained unchanged since its introduction. The Scottish Government and COSLA established the Commission on Local Tax Reform, which reported in December 2015. In March 2016, the Scottish Government published its proposals for reform of the Council Tax (Campbell 2016).

The main area of reform is to increase the ratios of the upper bands (E-H) relative to Band D. This will mean that bills for Band E will increase by 7.5%, Band F by 12.5%, Band G by 17.5% and Band H by 22.5%. No additional bands have been added and the ratios for Bands A-D will remain unchanged. The Government has also confirmed that it does not plan to hold a revaluation, so Council Tax will remain based on values of property in 1991. The impact of the proposed changes on bills varies between local authorities – for example those in Band H properties in Aberdeen City will see bills rise by £554, but those in Band H in Eilean Siar will see bills rise by £461.

The distribution of households in higher bands also varies considerably between local authorities. This means that some local authorities will take in much more additional income than others – Edinburgh will receive around £15.6m additional income, but the three island authorities will all receive less than £0.2m. The Government states that the additional income from changing Bands E-H “will be invested in schools across Scotland,” presumably through removing a comparable sum from the revenue support it provides through the local government settlement, since Council Tax is collected by councils, not the Government.

September November December February

Mid-September –

Scottish Government Draft

Budget published, including

totals for all of local government.

Late November –

Local Government Finance Consultation

Circular published, detailing provisional

allocations to localauthorities and the

terms of any commitments required of

local government.

Mid December –

Deadline for COSLA to respond to

the terms of the Consultation Finance

Circular

Early February –

The Budget Bill for the forthcoming year will be

expected to have completed its passage through the

Parliament. Soon after that (normally the next day),

the Parliament will debate the Local Government

Finance (Scotland) Order, which sets out the formal

allocations of the settlement for the forthcoming

year and also amends the current year allocations.

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The Commission on Local Tax Reform modelled an alternative, “proportional” Council Tax. Under the Commission’s alternative for the Council Tax, those in Bands A-C would pay significantly less than under the current system or Scottish Government proposals. But those in Bands E-H would pay considerably more – especially those in Band H.

The Commission concluded that, “in order to achieve proportionality would require the tax on the highest value homes to be 15 times the tax on the lowest value homes”. Using this methodology, this would appear to indicate that, while the Government’s proposals make the Council Tax more proportionate than the present system, they fall short of making the Council Tax a “proportionate” tax. Therefore, if the reformed Council Tax is not “progressive”, or even “proportionate”, then even if the proposed changes make it less regressive, then it would still be termed “regressive” using this methodology.

Another aspect of the Government’s proposed reform is to end the Council Tax freeze, although the Government states that any future rises will be capped at 3% per year. It is not clear how this will be enforced. In addition to amending Bands E-H, the other major area of reform to Council Tax is the introduction of a targeted relief for “around 54,000 households in properties in Bands E-H on net incomes below the Scottish median for their household type, up to a maximum of £25,000”. However, the published information from the Government contains very little detail on how this reform will operate in practice. It is not clear how much it will cost to implement the policy, and it is not clear the extent to which local authorities were consulted prior to its announcement. Finally, the Government also proposes to consult exchanging a fixed proportion of income tax receipts, distributed to individual councils through the local government settlement. This reform will clearly take some time to implement and given the disparity in income tax receipts between local authority areas, it suggests an equalisation system would need to be introduced to effect this reform.

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ANNEX

TABLE 1: POPULATION BY COUNCIL, 2015

Council area

Glasgow City 606,340

Edinburgh, City of 498,810

Fife 368,080

North Lanarkshire 338,260

South Lanarkshire 316,230

Aberdeenshire 261,960

Highland 234,110

Aberdeen City 230,350

West Lothian 178,550

Renfrewshire 174,560

Falkirk 158,460

Perth & Kinross 149,930

Dumfries & Galloway 149,670

Dundee City 148,210

North Ayrshire 136,130

East Ayrshire 122,060

Angus 116,900

Scottish Borders 114,030

South Ayrshire 112,400

East Dunbartonshire 106,960

East Lothian 103,050

Moray 95,510

East Renfrewshire 92,940

Stirling 92,830

West Dunbartonshire 89,590

Midlothian 87,390

Argyll & Bute 86,890

Inverclyde 79,500

Clackmannanshire 51,360

Eilean Siar 27,070

Shetland Islands 23,200

Orkney Islands 21,670

Scotland 5,373,000

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TABLE 2: TOTAL LOCAL GOVERNMENT EMPLOYED, EXCLUDING POLICE AND FIRE

Quarter Year Total Local Government, excluding police and fire

Q1 2000 213,100

Q2 2000 213,300

Q3 2000 212,300

Q4 2000 212,000

Q1 2001 211,600

Q2 2001 213,400

Q3 2001 214,100

Q4 2001 215,200

Q1 2002 216,500

Q2 2002 217,700

Q3 2002 218,600

Q4 2002 219,400

Q1 2003 219,800

Q2 2003 222,000

Q3 2003 222,900

Q4 2003 225,300

Q1 2004 226,400

Q2 2004 228,100

Q3 2004 229,300

Q4 2004 229,800

Q1 2005 231,200

Q2 2005 232,500

Q3 2005 232,900

Q4 2005 233,500

Q1 2006 234,200

Q2 2006r 233,000

Q3 2006r 232,800

Q4 2006r 230,500

Q1 2007r 230,200

Q2 2007r 229,500

Q3 2007r 229,800

Q4 2007r 229,800

Q1 2008r 229,900

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Q2 2008r 229,100

Q3 2008r 228,800

Q4 2008r 228,300

Q1 2009 228,300

Q2 2009 223,800

Q3 2009 222,000

Q4 2009 221,900

Q1 2010 221,200

Q2 2010 219,900

Q3 2010 217,600

Q4 2010 215,500

Q1 2011 214,200

Q2 2011 210,600

Q3 2011 207,900

Q4 2011 206,400

Q1 2012 207,200

Q2 2012 206,200

Q3 2012 204,400

Q4 2012 203,900

Q1 2013 204,100

Q2 2013 203,800

Q3 2013 202,400

Q4 2013 203,200

Q1 2014 202,800

Q2 2014 202,400

Q3 2014 201,800

Q4 2014 201,800

Q1 2015 201,900

Q2 2015 200,100

Q3 2015 200,100

Q4 2015 199,300

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SOURCES

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Campbell, A. (2016) Scottish Government proposals for Council Tax reform. Available at: http://www.parliament.scot/parliamentarybusiness/97534.aspx [Accessed 12 August 2016]

City of Edinburgh Council. (2016) Your Council – Your City. Available at: http://www.edinburgh.gov.uk/ [Accessed 12 August 2016]

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Local Government Boundary Commission. (2016b) Recommendations for councillor numbers and wards submitted to Scottish Ministers. Available at: http://www.lgbc-scotland.gov.uk/reviews/5th_electoral/01_resources/News_release_260516.pdf [Accessed 12 August 2016]

Marsh, Richard. (2013) How Do Local Authorities Make Decisions? Available at: http://www.parliament.scot/ResearchBriefingsAndFactsheets/S4/SB_13-85.pdf [Accessed 12 August 2016]

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Scottish Government. (2015b) History of Local Government in Scotland. Available at: http://www.gov.scot/Topics/Government/local-government/localg/history v

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RELATED BRIEFINGS

SB 16-26 Local Government Finance: facts and figures, 1999-2017 (889KB pdf) 22 September 2015

SB 16-07 Local Government Funding: Draft Budget 2016-17 and provisional allocations to local authorities (1,679 KB pdf) 15 March 2016

SB 13-85 How Do Local Authorities Make Decisions? (1,141KB pdf) 19 December 2013

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