In Scotland, councils are financed by grants from Scottish Government, by non-domestic rates charged to businesses in their area and by council tax charged to households in their authority. The council's budget is spent on education, social work, police services and other services provided by the council.

First broadcast:
18 March 2003

The data presented in the clip is from 2002. Challenge students to research more recent figures for Edinburgh's council budget and compare the two sets of data. Ask students to examine the figures they have found and highlight any major changes that have taken place over the period in question. Analyse the data and ask students to build pie charts that demonstrate how the money is both raised and spent. Pupils can try the same exercise with the budget of their own local council and present their own ideas of how money should be spent if they were in charge of finances.