The reformed system of local government finance in Scotland

This article examines the principles behind recent reforms in local government finance in Scottish local government. It is argued that whilst the local tax reform has been implemented relatively smoothly, the other reforms which accompanied it have been more problematic. In particular the switch from selective to universal capping has resulted in the unintended consequence of previous 'underspenders' spending much closer to their centrally determined level. Accountability has also become increasingly blurred due to increased local dependence on grant. The large mismatches between Government Assessed Expenditure levels and notional budgets have clouded the picture still further.