Approximately 80 percent of local authority funding comes from the Scottish Executive and 20 percent from council tax. The amount of money that the Scottish Government gives to local councils is ultimately decided through the funding it is given by Westminster. The clip features Andy Kerr, who was Minister of Finance and Public Services in the Scottish Government from 2001 to 2004.

First broadcast:
18 March 2003

As a follow up activity, students could design a small diagram which highlights the external influences on local government in picture form, using minimal text. Students could examine current plans for Scottish independence and research the financial viability of the various schemes. What are the referendum plans for the major political parties involved? Include these findings on the diagram.