Local authorities in Scotland will receive core funding of £8.7 billion for the coming financial year, it has been announced.

Tom McCabe, minister for finance and public service reform, told the Scottish Executive that the sum represents an increase of £396 million compared to the previous tax year, which equates to annual funding growth of nearly five per cent.

This increase should be sufficient to minimise a rise in council tax, he said, noting that the average local increase in the levy over the current financial year has been 3.2 per cent, the smallest hike since devolution in Scotland.

“By confirming these record levels of funding for next year, we will continue to look to local authorities to secure improvements in the quality of public services provided for all the people who are living and working in Scotland,” Mr McCabe said.

Individual councils in Scotland will receive between 3.7 and 5.5 per cent more funding in the coming financial year, it has been confirmed.

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