Councils will receive a record £14 billion funding settlement, following approval of the Local Government Finance (Scotland) Order 2024.
Local authorities have each been allocated a share of £13.9 billion to fund services, including £6 million to support the expansion of free school meals, £242 million for teacher pay rises and more than £266 million for local government pay deals.
Ministers have also made available a further £147 million to enable local authorities to freeze Council Tax rates at their current levels, equivalent to an above-inflation 5% rise in council tax nationally.
Public Finance Minister Tom Arthur said:
“In the face of a profoundly challenging financial situation due to a real terms cut in our budget allocation from the UK Government – the Scottish Government is providing record funding of over £14 billion to councils – an increase of 4.3% on the previous year.
“We have also confirmed our intention to pass on up to £62.7 million of Barnett consequentials following the UK Government’s Spring Budget, alongside any consequentials associated with increased teacher pension employer contributions.
“We will also prioritise a £4 million increase in the Islands Cost of Living fund in direct response to concerns raised by some island authorities on the costs of living and delivering services in island communities.
“Work with COSLA will continue in the coming year to empower councils through a new fiscal framework and by increasing discretion to set fees and charges locally.
“We are also committed to finalising a framework to underpin the Verity House Agreement in the coming months.
“The Scottish Government will continue to work in partnership with local government to ensure the people of Scotland continue to receive the high quality public services that they expect and deserve.”
