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Local Government in Scotland. Why Local Government?. 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
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Why Local Government? • 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
Mandatory Services • These services are services that the council must provide • Education • Police • Fire Brigade • Social Work • Cleansing etc
Discretionary Services • Swimming Pools • Gala Days • Flood control • Twin Towning • Rural Lighting
Structure Local Government in Scotland is organised on a unitary basis This means that each council is responsible for providing all services Scotland now has 29 councils on the mainland and three island authorities Our authority is Glasgow City Council
Raising Money Local authorities have four ways of raising money • 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
Aggregate External Finance Previously known as the Revenue Support Grant • 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
Council Tax Band H - Value £212,000 Tax -£2090 • 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 E Value £70,000 Tax £1,227 Band B Value £30,000 Tax £812
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
Finance • 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
Public Private Partnership • 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
Revenue Expenditure • Consists of annual running costs of council • WAGES • TELEPHONE & HEATING • STATIONARY • REPAYMENT OF LOANS