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Councils offered "record" package to secure tax freeze |
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Monday, 17 December 2007 |
Councils have been given their funding allocations for the next three years together with a last-ditch plea to freeze council tax.
Announcing the distribution of a £34.8bn package for 2008-11, Cabinet
Secretary for Finance and Sustainable Growth John Swinney said the
settlement was the first major milestone in the new, more constructive
relationship between councils and the Scottish Government.
The deal amounted to "record investment" in local government, said
Swinney, and the onus was now on councils to use the additional
resources to freeze council tax.
"Annual council tax increases have been far too high for far too long," he said.
"This Government promised to freeze council tax across Scotland and we
have put the resources in place to allow all councils to do exactly
that.
"It is now up to councils to play their part, freeze council tax and
become part of the new, more productive relationship between local and
national government."
The tone of that new relationship is set by the concordat signed by
councils and the Government last month. The agreement sees councils
given greater financial autonomy in return for a series of commitments
on class sizes, nursery education and police numbers.
"As part of our new relationship we want to give local authorities more
freedom than ever before on how to spend their share of this money,"
said Swinney. "We want local authorities to allocate their resources in
more productive ways to meet local demands for local services.
"Todayıs settlement will ensure that local authorities will be vital
partners in creating a more successful country, with opportunities for
all of Scotland to flourish, through increasing sustainable economic
growth."
Next year, councils will receive a year-on-year increase in core
revenue grant of 4.55 per cent. The biggest increases will go to
Shetland Islands (7.66 per cent), followed by East Renfrewshire (6.93
per cent) and Orkney Islands (6.68 per cent). Among those with a bare
minimum increase of 3.4 per cent are Glasgow City, Dundee City and East
Ayrshire.
Swinney also revealed how much each authority is to receive of next
yearıs £70m council tax freeze compensation package. Glasgow City,
which has already pledged to honour the freeze, is to gain £7.78m,
while Edinburgh has been offered £6.89m and Fife £4.69m.
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Last Updated ( Monday, 17 December 2007 )
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