How our budget is funded

The funding for Aberdeenshire Council's budget for 2015/16 comes from different sources. This includes money from Aggregate External Finance, Fees and Charges and Council Tax.

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Aggregate External Finance is allocated to each local authority by the Scottish Government to help finance the cost of services. It is made up of a Revenue Support Grant, Business Rates and Ring Fenced Grants.

The figure for Aggregate External Finance (AEF) is worked out by a combination of the relative spending need of each council, and the amount of grant which the Scottish Government decides should be paid to councils in total.

The remaining Ring Fenced Grants are paid towards the cost of certain specific services. Business Rates are collected by councils from businesses in their area, and paid over to the Scottish Government, which then re-distribute the total back to councils on the basis of their population.

The difference between the sum of these two elements of AEF and each council’s total AEF is paid in the form of the Revenue Support Grant. The difference between the total to be spent, and the money paid by the Scottish Government is met by local residents from fees and charges and council tax.

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