North-east councillors have warned “serious financial challenges” lie ahead following the finance secretary’s budget proposals yesterday.
Leaders at Aberdeen City Council and neighbouring Aberdeenshire have long complained about the level of funding they receive from Holyrood, which has reduced in recent years.
In his speech to Parliament, finance secretary Derek Mackay said council funding would increase to £11.1 billion by 2019/20.
But there have been calls for clarity on what the funding will mean on the ground and concerns raised about potential extra responsibilities.
Aberdeenshire Labour councillor Alison Evison, who is also the president of council body COSLA, said: “There is no scope for local government to mitigate the impact of these cuts as there has been no movement yet on local taxation.
“The 3% council tax cap remains and there is no indication about discretionary taxation, including tourist tax.
“What we have here is a bad deal for communities and for jobs. Given these proposals, serious financial challenges lie ahead for councils.”
Liberal Democrat Peter Argyle, deputy leader of Aberdeenshire Council, said: “It is almost impossible to tell from the budget speech how Aberdeenshire Council or any individual council will fare.
“We are and have been for many years, one of the lowest funded councils in Scotland. We have faced real challenges as a result of the downturn in the north east economy, ever increasing demands for services and demographic pressures.
“We will be looking closely at Mr Mckay’s statement but it unlikely that we will have a clear picture of what it means for Aberdeenshire Council before next week.”
Conservative Douglas Lumsden, co-leader of Aberdeen City Council, said: “It is being billed as an increase but it is smoke and mirrors.
“Once you account for the likes of early years provision and other new responsibilities it means we will have a cut of around 3% in real terms, which affects the services we can deliver.”
Guy Ingerson, co-convener of the Aberdeen Greens, said: “So far this budget does nothing to win our support.
“In particular I’m disappointed to see nothing about much needed local tax reform or moves to scrap the unfair council tax.”
SNP group leader on Aberdeen City Council, Stephen Flynn, said: “There is no doubt that in the face of continued austerity the government has put forward a positive budget which invests in Scotland’s future – in stark contrast to the chaos engulfing Westminster.
“In particular, the level of investment in early years, social care and housing is incredibly good news and there is no doubt that the scale of such investment will provide huge benefits to people across Aberdeen.”
