• Just as Westminster ‘devolves’ certain powers to the Scottish Parliament

• The Scottish Parliament ‘devolves’ certain of these powers to Local Councils

• These councils are elected locally

• Therefore they know the needs of their own area

• Some services they provide are mandatory and some are discretionary

• These services are services that the council must provide

• Education• Police• Fire Brigade• Social Work• Cleansing etc

• Swimming Pools• Gala Days• Flood control• Twin Towning• Rural Lighting

Local Government in Scotland is organised on a unitary basis

This means that each councilis responsible for providing all services

Scotland now has 29 councilson the mainland and threeisland authorities

Our authority isGlasgow City Council

• 80% of LG cash comes in a grant from the government. This is known Aggregate External Finance (AEF)

• The second is the Council Tax

• The third is by Private Public Partnerships

• The fourth is by government charges

Local authorities have four ways of raising money

Aggregate External Finance

• This comes from money the government has raised in taxation from ordinary people and businesses. eg

• Income Tax• Value Added Tax

(VAT) etc• Around 80% of LG

revenue

Previously known as the Revenue Support Grant

Council Tax

• Replaced the Community Charge (Poll Tax) in 1993

• Paid by most housholds based on the Councils valuation of the property

• Single person households get 25% reduction

Band H - Value £212,000 Tax -£2090

Band B Value £30,000 Tax £812

Band E Value £70,000Tax £1,227

Public Private Partnership

• Used for large expensive projecte like schools

• LG arranges for a business partner who wlii provide the cash for building

• LA’s pay a rent and• run the establishment

Charges for Selected Services

• Charges for School meals

• Hire if skips• Rural sanitation

charges• Entries to leisure

centres

• CAPITAL EXPENDITURE

• Used for large expensive projects like leisure centres, schools etc

• So expensive that the money has to be borrowed from financial institutions

• Permission to borrow has to be received from the Government

• Local Government takes a partner such as a bank

• The bank would finance and design the

• new building (school etc)

• Council leases the building and manages the school

• Consists of annual running costs of council

• WAGES• TELEPHONE &

HEATING• STATIONARY• REPAYMENT OF

LOANS