Finance Secretary John Swinney will tomorrow ask the Scottish Parliament to approve an extra £70 million funding to compensate local authorities for freezing their council tax.

Following the decision by all 32 local authorities in Scotland to freeze their council tax levels in 2010-11 for the third year in a row, the Finance Secretary will open a parliamentary debate seeking approval to amend the Local Government Finance (Scotland) Order 2010.

Mr Swinney said:

"The Scottish Government's continued support for a council tax freeze highlights our commitment to do all we can to support families through these difficult times. It is another tangible example of the partnership we enjoy with local government and the real benefits this delivers for people across Scotland.

"£70 million is the equivalent of an annual increase of just over three per cent in council tax rates across all local authorities - an increase that Scottish householders would otherwise have been forced to pay.

"The extension of the freeze means that, over the three years 2008-11, households in Scotland will have been saved £420 million in council tax payments. Putting such a substantial sum back into people's pockets will have helped to boost spending in local economies and support local businesses, which is helping our recovery. It comes as councils work hard to balance the need to deliver significant efficiencies with better value for money and improved service quality.

"If approved by Parliament, the additional £70 million included in the Order will take the Scottish Government's overall funding to local authorities for 2010-11 to £12 billion - representing an increase, on a like-for-like basis, of £279 million or 2.4 per cent compared with 2009-10 - and delivering on our commitment to increase, year-on-year, local government's share of the Scottish budget."

The Local Government Finance (Scotland) Order 2010, which was approved by the Scottish Parliament on February 10, 2010, set out the guaranteed combined amounts of Revenue Support Grant and Non Domestic Rate Income payable to each of Scotland's 32 local authorities for 2010-11. Following all 32 local authorities' decisions to freeze their council tax levels for 2010-11 the Local Government Finance (Scotland) Amendment Order 2010 now seeks the Scottish Parliament's approval to the payment of an additional £70 million of Revenue Support Grant for 2010-11 in lieu of the council tax income foregone by local authorities as a result of their decision to freeze the council tax.

If the Amendment is approved by Parliament, the additional £70 million will be allocated to all 32 local authorities on a fair and equitable basis, agreed with COSLA.

http://www.scotland.gov.uk/News/Releases/2010/04/13145611