A two-month delay to the payment of £6 million owed to Aberdeen City Council by the Scottish Government have been branded “disgraceful”.
Earlier this month we revealed city leaders are still waiting for millions of pounds’ worth of Covid-19 grants designed to support businesses through the pandemic.
Local authority officials revealed the cash from ministers was first due on September 1 – but has been delayed on three occasions.
In an internal briefing, they warned the delay could have a “serious impact” on the city and council services.
Now the row has reached the Scottish Parliament, with north-east Conservative MSP Liam Kerr raising it at First Minister’s Questions today (Thursday).
Council ‘will get every penny’
In parliament, Nicola Sturgeon insisted the council would get “every penny” owed to it – but Mr Kerr slammed her response to the delay.
“Nicola Sturgeon’s response saying Aberdeen was getting every penny is ridiculous because they are still owed £6 million – more than just a few pennies,” he said.
“The way this has been handled has been absolutely disgraceful and the Scottish Government should be ashamed of themselves.
“This is having a serious impact on our city and our business community who have been among the hardest hit in Scotland.
“The SNP need to stop dithering and release the vital funding which the council is relying on – it would be unthinkable for this to be delayed for a fourth time.”
Delay ‘disappointing’
Aberdeen City Council paid out £21.7m to businesses impacted by coronavirus and the lockdowns imposed as the NHS struggled to cope with demand.
More than £15 million from Holyrood has already reached the Town House coffers.
However, the outstanding £6 million – a chunk of which specifically relates to support for traders affected by the local lockdown in August last year – has not yet been paid.
Council leader Jenny Laing previously warned the “disappointing” situation could impact the authority and businesses, as the local authority had only dished out the cash on the basis the Scottish Government would pay them back.
“Despite the Scottish Government’s continuing failure to provide the council with its full share of business grant funding we have where possible ensured that businesses who have needed financial support have received it as and when required,” she said.
When the issue was first raised, a government spokesman said all councils who were owed money would receive it on November 1.
“Since the start of the pandemic, businesses have benefitted from more than £4.3 billion in support and we have worked closely with local authorities to deliver many of these vital funds,” he said.
“Final payments to all local authorities will be made on 1 November.”