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Aberdeen council will demand more funding for the city

Jenny Laing
Jenny Laing

A report is being prepared between the council and private sector to demand more funding for the Aberdeen authority.

City council leaders have long complained about the level of funding received by the city – which has been found to be the lowest per head in Scotland.

But Holyrood has always argued the city is fairly funded and that cuts in grants are due to its block grant from Westminster.

Now a new report is being prepared alongside the council’s arms-length bodies, the chamber of commerce, federation of small business and Opportunity North East to “assess the impact on Aberdeen of Scottish Government funding in comparison with the funding received by other local authorities”.

It will also help identify how the council can encourage the Scottish Government to “provide a better financial settlement for Aberdeen”.

Aberdeen, a traditionally rich city which has been hit by the downturn in the oil and gas sector, now raises a huge majority of its spending budget through the likes of business rates, council taxes, charges for services and new financial arrangements like the bond issue on the stock exchange.

Figures show the amount raised by the city council through charges for services such as burials and parking fees has increased by 191%, from £14million to almost £41million in the past four years.

Council chiefs saying they were aiming for a “closer working relationship” between Holyrood and Marischal College.

Council co-leader Jenny Laing said a Scottish Parliament report showed Aberdeen has been the lowest funded council for the last six years.

She added: “It is imperative that the city speaks with a single voice. That is why we are calling on all sectors within the city to join forces and work together to assess the current impact of Scottish Government funding on Aberdeen in comparison to funding received by other councils.”

A Scottish Government spokesman said Aberdeen had received £50million extra due to the 85% floor policy in recent years.

He added: “The finance secretary had a positive and productive discussion this month with the co-leaders of Aberdeen City Council. We are working closely with our partners in local government to deliver vital local services and support sustainable economic growth.”