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Aberdeen City Council’s bid for UK Government funds takes step forward

Aberdeen councils funds
The Palace of Westminster.

Aberdeen City Council co-leader Douglas Lumsden has tabled a motion urging councillors to strike a deal with the UK Government for cash to boost the local authority’s low funding levels.

Mr Lumsden’s motion criticises the “centralising approach” of the Scottish Government and claims it has resulted in Aberdeen becoming one of Scotland’s lowest-funded councils over the last decade.

Councillors are to debate the motion, which highlights a lack of Scottish Government funding, arguing it is having a “detrimental impact” on Aberdeen’s public service provision.

Aberdeen councils funds
Council co-leader Douglas Lumsden.

In order to source other cash supplies, the motion calls on the council to write to Scottish Secretary Alister Jack for UK Government grant funding.

The Tory councillor’s motion says: “Council instructs the chief executive to write to the Secretary of State for Scotland asking him if the UK Government would consider dealing directly with Aberdeen City Council when it comes to allocating grant funding in order that Aberdeen City Council receives its fair share of funding.”

The motion calls on the council to write to Scottish Secretary Alister Jack.

Union connectivity review

The suggestion has been made following the UK Government’s proposal to work directly with Scottish local authorities when it comes to finance, in a bid to illustrate the strength of the Union.

The UK Government is not proposing to replace core council funding, which is the Scottish Government’s responsibility.

It has, however, identified a number of initiatives including the EU funding replacement, the Shared Prosperity Fund, which was specifically mentioned in Mr Lumsden’s motion.

Other initiatives suggested by the UK Government for this new partnership with councils include the Union Connectivity Review, which aims to improve transport links between different parts of the United Kingdom and the Freeports programme.

Aberdeen and Aberdeenshire councils have already indicated they intend to go down that route. 

‘It is real devolution’

The UK Government’s approach comes on the back of the Internal Market Bill, which allows it to invest directly in devolved areas like transport and infrastructure.

The SNP has argued that such an approach undermines devolution, but the UK Government disagrees.

Aberdeen councils funds
The Palace of Westminster.

A UK Government source welcomed Mr Lumsden’s initiative, stating: “The Secretary of State has been very clear he wants to deal direct with local authorities on the new UK Shared Prosperity Fund.

“Local councils understand the communities they serve and it’s right the UK Government talks directly to them as we begin to focus on UK priorities rather than have spending directed by Brussels.

“It is nonsense to claim this undermines devolution. In fact, it is real devolution. As we leave the Brexit transition period and take back control of our funds, councils should have input into how it is spent.”

‘Local government is fully devolved’

The Scottish Government said Aberdeen received £390.1 million through the 2020/21 local government finance settlement. The council’s decision to increase council tax by 4% added another £27.5m.

So far, the local authority had been allocated another £25.5m during the pandemic, plus £28.8 for local business.

A Scottish Government spokesman added: “Local government is fully devolved and, as such, is the responsibility of the Scottish Government. There is no question, therefore, of any Scottish local authority being funded directly by the UK Government.”