Allan Wilson MSP
News - Press Releases - 2006

Allan Wilson MSP Reports North Ayrshire Council to Receive Funding Increase in 2007 - 18th December 2006

 

North Ayrshire Council is set to receive an increase of 4.8% in Executive funding in 2006-07.

The funding will allow North Ayrshire Council to meet spending pressures and will increase the funding allocated to the
council in 2007/08 to £233.053m.
 

North Ayrshire Council is set to receive an increase of 4.8% in Executive funding in 2006-07, thanks to an announcement today of £250 million of additional benefits.

It includes new funding of £218 million (£157 million for revenue and £61 million for capital), and builds on the record levels of funding councils have received since Devolution.

Local Labour MSP Allan Wilson says the announcement by the finance minister would allow North Ayrshire Council to meet spending pressures and will increase the funding allocated to the council in 2007/08 to £233.053m.

Speaking about the announcement from Parliament, Allan Wilson MSP said:

“North Ayrshire Council provides vital services to local residents and today’s announcement means the council will be able to invest even more in these services”.

“I am particularly pleased that North Ayrshire Council has agreed to use the funds to deliver increased council tax collection rates, to continue to exert downward pressure on council tax levels, to develop more effective asset management strategies, to deliver increased efficiency savings and review the delivery of free personal care.”

The Executive agreed to look again at funding for councils for 2007-08 and in return, councils have given assurances to:

1. Take action to increase council tax collection rates.
2. Continue to exert downward pressure on council tax levels.
3. Ensure effective asset management strategies are in place.
4. Increase the target level of their efficiency savings by at least £61 million.
5. Work with the Executive to complete a study into the costs and identify best practice in delivering free personal care.

Together with various other measures, including the decision to allow councils to retain the benefits to them from successive cuts in business rate poundage levels and the benefit they will receive from Executive funding of the new 'Firelink' and e-planning systems, this means that local government will now benefit in 2007-08 from a package of measures worth more than £250 million.

Notes:

The £250 million of additional benefits includes new funding of £218 million (£157 million for revenue and £61 million for
capital), and builds on the record levels of funding councils have received since Devolution.

Full details of the settlement please visit the Executive website at:
http://www.scotland.gov.uk/News/Releases/2006/12/13133331

Local Government Settlement

                                        AEF            AEF           £m            %            Share
                                       06-07        07-08        incr'se      incr'se       additn'l
                                         £m            £m            06-07        06-07       £157m

Aberdeen City               291.033   303.535     12.501       4.3%         5.749

Aberdeenshire              342.668   360.633     17.965       5.2%          6.987

Angus                           173.361   182.297      8.935        5.2%           3.381

Argyll & Bute               175.107   182.389      7.283        4.2%           3.091

Clackm'nshire             74.085      78.144       4.058         5.5%          1.462

Dumfries &
Galloway                      251.025    262.479     11.454       4.6%          4.713

Dundee City                253.072    263.497      10.424      4.1%          4.588

East Ayrshire              193.039    201.961       8.922        4.6%          3.823

East Dunbartonshire  152.338    158.975       6.636        4.4%          3.181

East Lothian               134.791    142.004       7.213        5.4%          2.689

East
Renfrewshire             137.384     144.258      6.874        5.0%           2.810

Edinburgh                 629.886     658.379      28.493      4.5%          11.789

Eilean Siar                96.738        100.261      3.524        3.6%           1.406

Falkirk                      225.706      237.574      11.868      5.3%          4.307

Fife                           536.744      565.530       28.785     5.4%         10.585

Glasgow                  1,137.561    1,183.691     46.130      4.1%         19.181

Highland                 390.058      409.459        19.401      5.0%         6.481

Inverclyde               145.889      152.371        6.482        4.4%         2.659

Midlothian              127.536      133.920        6.384       5.0%          2.529

Moray                      137.875      145.089        7.214       5.2%         2.673

North Ayrshire        222.300      233.053        10.753    4.8%         4.287

North
Lanarkshire             513.147       539.013       25.866    5.0%         9.874

Orkney                    58.510         61.071          2.560     4.4%          1.542

Perth & Kinross     206.198       217.231        11.033    5.4%         4.092

Renfrewshire         272.644       285.741        13.097     4.8%        5.228

Scottish
Borders                  181.825       191.465         9.640        5.3%       3.537

Shetland                79.562         82.882           3.320       4.2%        1.537

South Ayrshire      168.429      176.543         8.114        4.8%        3.339

South
Lanarkshire           466.130      488.231         22.101      4.7%        9.045

Stirling                  138.696      145.935          7.239        5.2%        2.704

West
Dunbartonshire    163.864       170.816          6.952        4.2%        3.095

West Lothian        244.915       256.988         12.072      4.9%        4.837

Scotland               8,322.115    8,715.410     393.295     4.7%        157.201

Minimum increase 3.6%

Maximum increase 5.5%

The provisional local government finance settlement for 2007-08 announced by Ministers in February 2006 provided for revenue increases of £239 million, or 2.9 per cent, over 2006-07.

The sums announced today mean that the increase in revenue funding will amount to £393 million, an increase of 4.7 per cent, and include an additional £17 million, mainly for educational services over what was previously announced in the settlement.

Together with the impact of the poundage rate cuts (worth an estimated £10 million to local authorities themselves) and the additional £17 million mentioned above, this group of further provisions is worth over £50 million in 2007-08.

Local authorities are also now taking advantage of the greater freedoms provided under the "Prudential regime" which Ministers introduced from April 1, 2004, to undertake further self-supported borrowing for capital expenditure, subject to affordability.

 

Comment

 

Back to News Main

Back to News - 2006

 

For further information contact:
Allan Wilson MSP 01294 605040 (Office)
 

[Home Page] [Surgeries] [Press Releases] [Speeches] [Policy Briefings] [Cunninghame North]
[Annual Reports] [Photo Gallery] [Biography] [Links] [Contact] [Guestbook] [Search] [Site Map]