The Scottish Budget 2003-04: Summary
Chapter 9 Local Government
Andy Kerr MSP: Minister for Finance and Public Services
In 2001-02, the Local Government budget was 6,520m. Among other things, this money provided:
- 6,079m to support the full range of local authority services
- 440m for local authority capital spending on police, fire, education, roads and transport, and other services
- 1m on communities, commissions, publicity and policy Our budget for 2002-03 is 7,143m. Among other things, we expect this to go towards:
- 6,690m to support the full range of local authority services
- 452m for local authority capital investment in infrastructure, including schools, roads and transport
- 1m on communities, commissions, publicity and policy. We plan to spend a further 7,638m on local government in 2002-03. Our key priorities for 2003-04 are:
- 7,128m to support the full range of local authority services
- 509m for local authority capital spending on police, fire, education, roads and transport
- 1m on communities, commissions, publicity and policy, transport, and other services
Aim
To make sure that local authorities deliver the highest quality services and to work with local authorities to modernise local government.
What the budget does
Grant support to local government accounts for the largest share of our total spending. It supports local authorities ( www.cosla.gov.uk) in delivering services across the range of their responsibilities, for example education, social work, police, fire, transport and environmental services.
Local government grants are split into Aggregate External Finance (AEF) and Capital grants:
- AEF supports local authority spending on providing services such as education, social work, police and fire, transport and environmental services.
- Capital grants support local authority investment in the infrastructure of local communities, such as improving schools and roads, and flood prevention measures. For example, capital grants to the fire services will allow fire brigades to replace or refurbish old fire stations, and replace worn vehicles and equipment. Table 9.1 Broad categories of spending (Level 2)
m | 2001-02
plans | 2002-03
plans | 2003-04
plans |
Aggregate External Finance1 | 6,078.8 | 6,689.9 | 7,128.0 |
Capital | 439.9 | 451.7 | 509.4 |
Committees, Commissions, Publicity and Policy | 0.9 | 0.9 | 0.9 |
1Figures for 2001-02 to 2003-04 contain provision of 30/20/40m in respect of Better Neighbourhood Services Fund - of which 10m is being carried forward from 2001-02 to 2002-03.
What we will do with the money
Local authorities set their priorities for spending and investment after considering local circumstances and taking account of their statutory duties, and national guidance and priorities. Specific grants are linked to specific policy initiatives (for example education or social work), and are covered in the appropriate chapters of this report.
Objectives and Targets
These are some of our objectives and targets. There is a fuller list in our main Annual Expenditure Report.
Objective | Develop local outcome agreements, setting out local outcome targets for delivering national policy priorities and commitments |
Target | Have initial agreements in place by April 2002 with further agreements in place by April 2003 |
Objective | Review ring-fenced controls on local authority funding |
Target | Continue to review existing ring-fenced specific grant funding during 2002 |