Aberdeen council leaders have written to finance secretary Derek Mackay calling for the authority to retain £28million business rates.
A joint letter from the leaders of the ruling Conservative, Aberdeen Labour and independent groups has upped the stakes in the row between the north-east authority and the Scottish Government.
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But opposition SNP leader Stephen Flynn branded the posting a “petty, pathetic, political stunt” and claimed that local government funding needed to be completely overhauled.
The letter said that the council would receive a government grant of around £57million this year, but would raise around £28million in rates.
Conservative group chief and council co-leader Douglas Lumsden said: “It is disappointing that this letter has not come from all group leaders in Aberdeen given the dismal settlement and the grave consequences for vital frontline services if our budget settlement is not improved.
“Our officers have estimated that, for 2018-19, we will have generated £28m more in business rates than the Scottish government asked us to collect.
“Therefore, it is reasonable for the cabinet secretary to honour his commitment and allow us to retain the £28m surplus rather than diverting the money to local authorities in the central belt which Aberdeen citizens are well aware has happened in the past.”
Mr Flynn said: “The precedent the administration are arguing for, which would effectively be the devolution of business rates, poses a potentially huge risk to this council.
“When the council collects less in business rates than has been estimated, that funding gap has to be met. Under the scenario proposed by the administration, the council would pick up that tab whereas, at present, the Scottish Government does.
“Between 2015 and 2017, this would have cost Aberdeen City Council £18.5m in lost revenue.”
