Extra funding for councils agreed

Mar 15 2012

Additional funding for Scotland's 32 local authorities, paid out in return for backing a council-tax freeze, has been formally agreed at Holyrood.

MSPs backed a Scottish Government order which gives councils £70 million of extra funding to compensate them for the freeze.

Local government minister Derek Mackay said all councils had included provisions for a package of commitments set out by the Scottish Government in their budgets.

These included a council-tax freeze for a fifth consecutive year, maintaining police officer numbers and maintaining teacher numbers in line with pupil numbers, while providing a place for each probationer teacher.

The Government has pledged to continue the council-tax freeze for the lifetime of the current parliament.

He said: "The agreement of local authorities to extend the council-tax freeze for 2012/13 will mean that our commitment will cumulatively have saved households across the length and breadth of Scotland over £1 billion."

Labour's James Kelly said his party would support the order to provide the £70 million.

He said: "I think we have to accept that council leaders put in the position of being offered the £70 million or having to take a 5.2% cut in the needs-based portion of their grant, is like having a gun held at their head, and you can understand why they've gone down the route they have."