Magazine article Public Finance

Scots Councils to Get £100M in Extra Funds

Magazine article Public Finance

Scots Councils to Get £100M in Extra Funds

Article excerpt

Councils in Scotland are in line for extra funding of around £100m to ease pressure on budgets and limit council tax rises in the year of elections to the Holyrood Parliament and local authorities.

Ministers, anxious to avoid a repeat of last year's bitter conflict between councils and the Scottish Executive, have indicated to local government leaders that a 'significant sum' will be available.

Although no final figure has been officially agreed, local government and parliamentary sources have confirmed to Public Finance that a sum of around £100m is likely. A further £50m may be provided to finance extra capital expenditure.

An announcement is due to be made by Finance Minister Tom McCabe in November. Scotland's councils, which failed to persuade him to allocate extra resources last year, will welcome the additional funding, arguing that it is an indication that ministers now recognise the scale of the budget problems they face. …

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