Date lodged: 12 February 2018
To what the Scottish Government how much of each city council's funding in 2018-19 will be raised from non-domestic rates, and what effect the Budget will have on this.
Answered by: Derek Mackay 6 March 2018
The Scottish Fiscal Commission have forecast 2018-19
Non-Domestic Rate Income to be collected at a national level will amount to
£2,812 million. Details of the actual income collected for 2018-19 at a local authority level, including the city councils, will be confirmed when councils submit their audited non-domestic rates returns in October 2019.
The package of non-domestic rates measures confirmed in the Sottish Budget, which continue to offer the most attractive package of rates reliefs available anywhere in the UK, have been taken into account in the income estimates provide by the Scottish Fiscal Commission.
It is important to recognise that each council retains every penny on non-domestic rates collected in their own area and the Scottish Government continues to guarantee each council’s formula share of the total level of funding to be provided through a combination of General Revenue Grant (GRG) plus Non Domestic Rates Income. In the event that the income from non-domestic rates turns out to be lower than forecast then the Scottish Government will make up any shortfall through the payment of additional GRG.
Council by council comparisons of non-domestic rates income should be interpreted with caution due to the way some individual councils collect rates bills for utilities on a Scotland wide basis.