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Home , Aberdeen City Council

CITY COUNCIL

COMMITTEE Finance, Policy & Resources

DATE 19 April 2016

INTERIM DIRECTOR Richard Ellis

TITLE OF REPORT Scottish Government Grant per Head of Population

REPORT NUMBER CG/16/052

CHECKLIST COMPLETED Yes

1. PURPOSE OF REPORT

This report provides an analysis of the 2016/17 Scottish Government funding settlement showing the allocation of funding on a “per head of population” basis.

2. RECOMMENDATION(S)

It is recommended that the Committee:

i) Note the content of the report.

3. FINANCIAL IMPLICATIONS

3.1 There are no direct financial implications from this report. The level of funding indicated formed the basis of the Budget report to Council on 25th February 2016.

4. OTHER IMPLICATIONS

4.1 None.

5. BACKGROUND/MAIN ISSUES

5.1 The report has been prepared in response to the Council decision on 25th February to instruct the Head of Finance to prepare a report to the Finance, Policy and Resources committee meeting in April 2016 showing the per head of population grant Aberdeen City Council receives from the Scottish Government in comparison to other local authorities but in particular , and based on the settlement received.

5.2 Appendices A and B attached summarise the “per head of population” funding figures across all Scottish local authorities, both alphabetically and in order of £ per head. It can be seen from those tables that on a “per head of population” basis Aberdeen has the lowest settlement of all Scottish local authorities.

5.3 The Council were specifically interested in a comparison of the figures for Aberdeen with those of Dundee, Edinburgh and Glasgow, and the table below details the figures for those authorities. It can be seen that Aberdeen has the lowest “per head of population” funding amongst this group and that whilst our funding level per capita is only marginally less than Edinburgh, Dundee receives 34% more per capita than Aberdeen and Glasgow receives 41% more than Aberdeen.

Population Funding Rank Total Funding Mid Year % above from SG 2014 Per Head () Aberdeen £m No. £ No. % Glasgow City 1219.974 599,646 2,034 7 41.3 Dundee City 285.065 148,117 1,925 9 33.6 Edinburgh, City of 717.466 492,604 1,456 31 1.1 Aberdeen City 329.668 228,923 1,440 32

5.4 Appendices C to E provide additional breakdowns of the funding “per head of population” as follows: Appendix C shows the NDRI funding per head of population Appendix D shows the General Revenue Grant funding per head of population, including the 85% floor Appendix E shows the General Revenue Grant funding per head of population, excluding the 85% floor These tables show that Aberdeen City has the second highest yield from NDRI income per head of population, but is ranked lowest in General Revenue Grant funding per head of population, across all local authorities in Scotland.

5.5 By way of additional information Appendix F shows the Scottish Government’s calculation of the 85% floor funding for 2016/17. Aberdeen City and the City of Edinburgh Councils benefit from the 85% floor calculation, as they are the only authorities receiving less than 85% of the Scottish average funding per head of population. Members will note that the formula for calculating this 85% floor still takes into account the funding for Police and Fire services.

6. IMPACT

Improving Customer Experience – No direct impact arising from this report.

Improving Staff Experience – No direct impact arising from this report.

Improving our use of Resources – No direct impact arising from this report.

Corporate - No direct impact arising from this report.

Public – This report is likely to be of interest to the public as it concerns the level of the Council’s financial settlement compared to other local authorities.

7. MANAGEMENT OF RISK

7.1 There are no risks arising from this report.

8. BACKGROUND PAPERS

Settlement letters received from the Scottish Government;

9. REPORT AUTHOR DETAILS

Paul Dixon, Accounting Manager [email protected] 01224 346355

APPENDIX A

Funding per Head of Population All Scottish Local Authorities 2016/17 (Alphabetical order)

NDRI GRG Population Funding

Non- General Total Per Head Domestic Revenue Funding from Mid Year of Rates Grant SG 2014 Population Rank £m £m £m No. £ No. Aberdeen City 215.586 114.082 329.668 228,923 1,440 32 98.451 311.631 410.082 260,533 1,574 30 Angus 29.410 168.533 197.943 116,734 1,696 26 Argyll & Bute 30.446 166.087 196.533 87,650 2,242 4 16.269 77.339 93.608 51,192 1,829 13 Dumfries & Galloway 47.992 233.971 281.963 149,954 1,880 12 Dundee City 71.011 214.054 285.065 148,117 1,925 9 30.239 192.589 222.828 122,138 1,824 14 25.550 157.386 182.936 106,712 1,714 24 24.370 143.410 167.780 102,087 1,644 28 East 15.623 160.823 176.446 92,386 1,910 10 Edinburgh, City of 374.650 342.816 717.466 492,604 1,456 31 Eilean Siar 8.020 89.427 97.447 27,254 3,576 1 68.028 205.165 273.193 157,691 1,732 22 183.331 440.122 623.453 367,256 1,698 25 Glasgow City 373.351 846.623 1,219.974 599,646 2,034 7 127.682 311.722 439.404 233,084 1,885 11 23.331 140.308 163.639 79,897 2,048 6 32.026 119.180 151.206 86,217 1,754 19 35.582 120.444 156.026 94,769 1,646 27 41.459 225.876 267.335 136,476 1,959 8 120.544 484.318 604.862 338,007 1,789 15 9.869 57.832 67.701 21,589 3,136 3 Perth & Kinross 57.555 185.776 243.331 148,923 1,634 29 Renfrewshire 96.106 207.366 303.472 174,229 1,742 21 33.594 169.332 202.926 114,043 1,779 17 17.822 64.595 82.417 23,228 3,548 2 40.755 157.168 197.923 112,535 1,759 18 303.113 248.070 551.183 315,301 1,748 20 46.216 116.980 163.196 91,522 1,783 16 82.793 101.431 184.224 89,712 2,054 5 87.726 217.488 305.214 177,191 1,723 23

Scotland 2,768.500 6,791.944 9,560.444 5,347,600 1,788

APPENDIX B

Funding per Head of Population All Scottish Local Authorities 2016/17 (in Rank order)

NDRI GRG Population Funding

Non- General Total Per Head Domestic Revenue Funding from Mid Year of Rates Grant SG 2014 Population Rank £m £m £m No. £ No. Eilean Siar 8.020 89.427 97.447 27,254 3,576 1 Shetland 17.822 64.595 82.417 23,228 3,548 2 Orkney 9.869 57.832 67.701 21,589 3,136 3 Argyll & Bute 30.446 166.087 196.533 87,650 2,242 4 West Dunbartonshire 82.793 101.431 184.224 89,712 2,054 5 Inverclyde 23.331 140.308 163.639 79,897 2,048 6 Glasgow City 373.351 846.623 1,219.974 599,646 2,034 7 North Ayrshire 41.459 225.876 267.335 136,476 1,959 8 Dundee City 71.011 214.054 285.065 148,117 1,925 9 15.623 160.823 176.446 92,386 1,910 10 Highland 127.682 311.722 439.404 233,084 1,885 11 Dumfries & Galloway 47.992 233.971 281.963 149,954 1,880 12 Clackmannanshire 16.269 77.339 93.608 51,192 1,829 13 East Ayrshire 30.239 192.589 222.828 122,138 1,824 14 North Lanarkshire 120.544 484.318 604.862 338,007 1,789 15 Stirling 46.216 116.980 163.196 91,522 1,783 16 Scottish Borders 33.594 169.332 202.926 114,043 1,779 17 South Ayrshire 40.755 157.168 197.923 112,535 1,759 18 Midlothian 32.026 119.180 151.206 86,217 1,754 19 South Lanarkshire 303.113 248.070 551.183 315,301 1,748 20 Renfrewshire 96.106 207.366 303.472 174,229 1,742 21 Falkirk 68.028 205.165 273.193 157,691 1,732 22 West Lothian 87.726 217.488 305.214 177,191 1,723 23 East Dunbartonshire 25.550 157.386 182.936 106,712 1,714 24 Fife 183.331 440.122 623.453 367,256 1,698 25 Angus 29.410 168.533 197.943 116,734 1,696 26 Moray 35.582 120.444 156.026 94,769 1,646 27 East Lothian 24.370 143.410 167.780 102,087 1,644 28 Perth & Kinross 57.555 185.776 243.331 148,923 1,634 29 Aberdeenshire 98.451 311.631 410.082 260,533 1,574 30 Edinburgh, City of 374.650 342.816 717.466 492,604 1,456 31 Aberdeen City 215.586 114.082 329.668 228,923 1,440 32

Scotland 2,768.500 6,791.944 9,560.444 5,347,600 1,788

APPENDIX C

NDRI Funding per Head of Population All Scottish Local Authorities 2016/17 (in Rank order)

NDRI Population Funding Non- Per Head Domestic Mid Year of Rates 2014 Population Rank £m No. £ No. South Lanarkshire 303.113 315,301 961 1 Aberdeen City 215.586 228,923 942 2 West Dunbartonshire 82.793 89,712 923 3 Shetland 17.822 23,228 767 4 Edinburgh, City of 374.650 492,604 761 5 Glasgow City 373.351 599,646 623 6 Renfrewshire 96.106 174,229 552 7 Highland 127.682 233,084 548 8 Stirling 46.216 91,522 505 9 Fife 183.331 367,256 499 10 West Lothian 87.726 177,191 495 11 Dundee City 71.011 148,117 479 12 Orkney 9.869 21,589 457 13 Falkirk 68.028 157,691 431 14 Perth & Kinross 57.555 148,923 386 15 Aberdeenshire 98.451 260,533 378 16 Moray 35.582 94,769 375 17 Midlothian 32.026 86,217 371 18 South Ayrshire 40.755 112,535 362 19 North Lanarkshire 120.544 338,007 357 20 Argyll & Bute 30.446 87,650 347 21 Dumfries & Galloway 47.992 149,954 320 22 Clackmannanshire 16.269 51,192 318 23 North Ayrshire 41.459 136,476 304 24 Scottish Borders 33.594 114,043 295 25 Eilean Siar 8.020 27,254 294 26 Inverclyde 23.331 79,897 292 27 Angus 29.410 116,734 252 28 East Ayrshire 30.239 122,138 248 29 East Dunbartonshire 25.550 106,712 239 30 East Lothian 24.370 102,087 239 31 East Renfrewshire 15.623 92,386 169 32

Scotland 2,768.500 5,347,600 518

APPENDIX D

General Revenue Grant Funding per Head of Population (including 85% Floor ) All Scottish Local Authorities 2016/17 (in Rank order)

GRG Population Funding General Revenue Per Head Grant incl. Mid Year of 85% floor 2014 Population Rank £m No. £ No. Eilean Siar 89.427 27,254 3,281 1 Shetland 64.595 23,228 2,781 2 Orkney 57.832 21,589 2,679 3 Argyll & Bute 166.087 87,650 1,895 4 Inverclyde 140.308 79,897 1,756 5 East Renfrewshire 160.823 92,386 1,741 6 North Ayrshire 225.876 136,476 1,655 7 East Ayrshire 192.589 122,138 1,577 8 Dumfries & Galloway 233.971 149,954 1,560 9 Clackmannanshire 77.339 51,192 1,511 10 Scottish Borders 169.332 114,043 1,485 11 East Dunbartonshire 157.386 106,712 1,475 12 Dundee City 214.054 148,117 1,445 13 Angus 168.533 116,734 1,444 14 North Lanarkshire 484.318 338,007 1,433 15 Glasgow City 846.623 599,646 1,412 16 East Lothian 143.410 102,087 1,405 17 South Ayrshire 157.168 112,535 1,397 18 Midlothian 119.180 86,217 1,382 19 Highland 311.722 233,084 1,337 20 Falkirk 205.165 157,691 1,301 21 Stirling 116.980 91,522 1,278 22 Moray 120.444 94,769 1,271 23 Perth & Kinross 185.776 148,923 1,247 24 West Lothian 217.488 177,191 1,227 25 Fife 440.122 367,256 1,198 26 Aberdeenshire 311.631 260,533 1,196 27 Renfrewshire 207.366 174,229 1,190 28 West Dunbartonshire 101.431 89,712 1,131 29 South Lanarkshire 248.070 315,301 787 30 Edinburgh, City of 342.816 492,604 696 31 Aberdeen City 114.082 228,923 498 32

Scotland 6,791.944 5,347,600 1,270

APPENDIX E

General Revenue Grant Funding per Head of Population (excluding 85% Floor ) All Scottish Local Authorities 2016/17 (in Rank order)

GRG Population Funding General Revenue Per Head Grant excl. Mid Year of 85% floor 2014 Population Rank £m No. £ No. Eilean Siar 89.427 27,254 3,281 1 Shetland 64.595 23,228 2,781 2 Orkney 57.832 21,589 2,679 3 Argyll & Bute 166.087 87,650 1,895 4 Inverclyde 140.308 79,897 1,756 5 East Renfrewshire 160.823 92,386 1,741 6 North Ayrshire 225.876 136,476 1,655 7 East Ayrshire 192.589 122,138 1,577 8 Dumfries & Galloway 233.971 149,954 1,560 9 Clackmannanshire 77.339 51,192 1,511 10 Scottish Borders 169.332 114,043 1,485 11 East Dunbartonshire 157.386 106,712 1,475 12 Dundee City 214.054 148,117 1,445 13 Angus 168.533 116,734 1,444 14 North Lanarkshire 484.318 338,007 1,433 15 Glasgow City 846.623 599,646 1,412 16 East Lothian 143.410 102,087 1,405 17 South Ayrshire 157.168 112,535 1,397 18 Midlothian 119.180 86,217 1,382 19 Highland 311.722 233,084 1,337 20 Falkirk 205.165 157,691 1,301 21 Stirling 116.980 91,522 1,278 22 Moray 120.444 94,769 1,271 23 Perth & Kinross 185.776 148,923 1,247 24 West Lothian 217.488 177,191 1,227 25 Fife 440.122 367,256 1,198 26 Aberdeenshire 311.631 260,533 1,196 27 Renfrewshire 207.366 174,229 1,190 28 West Dunbartonshire 101.431 89,712 1,131 29 South Lanarkshire 248.070 315,301 787 30 Edinburgh, City of 331.852 492,604 674 31 Aberdeen City 100.046 228,923 437 32

Scotland 6,766.944 5,347,600 1,265

APPENDIX F

SCOTTISH GOVERNMENT REVENUE FUNDING TO LOCAL GOVERNMENT 2016-17 - 85 PER CENT FUNDING FLOOR

Revenue (incl Police original average funding per & Fire) Population Funding Original Per Capita NEW Funding New Per Capita 85% head 1907 Mid Year 2014 Per Head Average Per Head New Funding Average 1578 £m £ % £ % Gain Gain £ Eilean Siar 101.663 27,254 3730 195.59 2060 56.135 110.94 Ceiling amount (%) 108% Shetland 86.050 23,228 3705 194.25 2060 47.843 110.94 Ceiling Funding per head 2060 Orkney 70.510 21,589 3266 171.25 2060 44.467 110.94 Argyll & Bute 209.308 87,650 2388 125.21 2060 180.532 110.94 West Dunbartonshire 200.291 89,712 2233 117.07 2060 184.779 110.94 Glasgow City 1,331.509 599,646 2220 116.43 2060 1,235.087 110.94 Inverclyde 175.992 79,897 2203 115.50 2060 164.563 110.94 Dundee City 310.786 148,117 2098 110.02 2060 305.076 110.94 North Ayrshire 283.578 136,476 2078 108.95 2060 281.099 110.94 Highland 472.276 233,084 2026 106.24 2026 472.276 109.13 Dumfries & Galloway 302.190 149,954 2015 105.67 2015 302.190 108.54 East Renfrewshire 183.235 92,386 1983 104.00 1983 183.235 106.83 Clackmannanshire 99.283 51,192 1939 101.69 1939 99.283 104.46 East Ayrshire 235.682 122,138 1930 101.18 1930 235.682 103.93 Scottish Borders 218.673 114,043 1917 100.54 1917 218.673 103.28 Stirling 174.802 91,522 1910 100.15 1910 174.802 102.87 North Lanarkshire 638.034 338,007 1888 98.98 1888 638.034 101.67 South Ayrshire 210.595 112,535 1871 98.13 1871 210.595 100.79 Renfrewshire 323.984 174,229 1860 97.50 1860 323.984 100.16 Falkirk 291.349 157,691 1848 96.88 1848 291.349 99.51 South Lanarkshire 581.700 315,301 1845 96.74 1845 581.700 99.37 Midlothian 158.660 86,217 1840 96.49 1840 158.660 99.12 West Lothian 322.621 177,191 1821 95.47 1821 322.621 98.07 Fife 665.857 367,256 1813 95.07 1813 665.857 97.65 East Dunbartonshire 192.670 106,712 1806 94.67 1806 192.670 97.25 Angus 209.759 116,734 1797 94.22 1797 209.759 96.78 Moray 166.736 94,769 1759 92.25 1759 166.736 94.76 Perth & Kinross 259.193 148,923 1740 91.26 1740 259.193 93.74 East Lothian 176.034 102,087 1724 90.42 1724 176.034 92.88 Aberdeenshire 431.667 260,533 1657 86.88 1657 431.667 89.24 Edinburgh, City of 766.408 492,604 1556 81.58 1556 766.408 83.80 22 10,980,788 Aberdeen City 347.437 228,923 1518 79.58 1518 347.437 81.75 60 13,831,042

Scotland 10,198.532 5,347,600 1907 100.00 1857 9,928 Total Cost 24,811,830

Source: A12397663 25,000,000

Allocation of remainder based on population share Population Remainder of £25m New Allocation Edinburgh, City of 492,604 128,468 11,109,256 11.11 Aberdeen City 228,923 59,702 13,890,744 13.89 Total 721,527 188,170 25,000,000 25.00 - New allocation share Funding Per Original plus additional population per head Capita Edinburgh, City of 766.408 777.517 492,604 1578 0.8501 Aberdeen City 347.437 361.328 228,923 1578 0.8501