To ask the Scottish Executive for what reason Moray Council’s grant allocation has reduced from 1.629% of the Scottish budget in 2010-11 to 1.601% in 2011-12.
The present needs-based distribution formula for local government funding is one which has been in place for many years. The formula was reviewed jointly, by the Scottish government and COSLA, in 2009, and it concluded that the existing indicators were reasonable and should be retained and updated for 2011-12.
The key changes which have led to the Moray Council''s reduction in share are as a result of the following reasons:
Population is the key driver and latest estimates show that the Moray Council''s population for young people aged five to 15 has fallen by 8.2% for 2011-12 compared with those used in the 2010-11 settlement. The Scottish average is a reduction of 4.6%.
The Moray Council''s share of the former ring-fenced grants has fallen to 0.98% for 2011-12 compared to 1.27% in 2010-11. This represents a drop of £2.8 million from 2010-11. Again, this is a result of updated needs-based indicators as agreed with COSLA.
The Moray Council will receive £11.735 million for Loan Charge Support in 2011-12 compared to £13.611 million 2010-11, a decrease of £1.876 million. This is equivalent to a 13.8% fall in funding compared to the Scottish average of 11.6%. These allocations are based on the council''s outstanding debt and latest interest charges.
In allocating the available capital grant the funding allocations for flood prevention schemes that were approved earlier were protected. That is why the Moray Council receives the lowest reduction in its overall capital support of -9.0%, compared to 2010-11, than other councils (Scottish average is -18.0%). It is also why in 2011-12 the Moray Council receives the highest per capita capital funding of any mainland authority and 111% above the Scottish average.