Aberdeen’s council co-leaders are holding crunch talks with Finance Secretary Derek Mackay over a “missing” £1.6 million in the council’s funding settlement.
Conservative Douglas Lumsden and Aberdeen Labour’s Jenny Laing believe their block grant from the Scottish Government is short by £1.6 million due to a Holyrood accountancy error.
A policy exists whereby, if a council’s annual grant from central government is less than 85% of the Scottish average funding for a council, the sum is “topped-up” by Holyrood.
Aberdeen is the only council that requires this “floor” funding.
Aberdeen City Council leaders claim Derek Mackay ‘misled parliament’ over city funding
Council leaders said they had calculated that they had received 84.69%, just short of the 85% floor but meaning leading to the shortfall.
But Mr Mackay has rubbished these claims saying the funding over several years shows a “real terms increase” in the cash given to the council.
He said that since the funding floor initiative was launched in 2012-2013 the authority has received 85.42% of the Scottish average.
Mr Lumsden and Mrs Laing will travel to Edinburgh today to discuss the matter.
Mr Lumsden said: “It has always been our understanding that the 85% policy applies every year- you can’t just use averages to find what you want.
“We are hoping for productive talks and it is good we have Cosla’s support.”
A Scottish Government spokesman said that since the funding floor was introduced in 2012 the allocation to has never been precisely 85% and this is the first year that the council has raised it as an issue.
Mr Mackay said: “Aberdeen City Council has received more than £50million in additional funding through the Scottish Government’s 85% floor.
“Our commitment to the area has been met, and we will continue to deliver.”
