Tough decisions ahead. Aberdeenshire Council has to find £20m to balance the books over the next year. The Scottish Government’s draft budget means that we will continue to be the third lowest funded council in Scotland.
On 8 February councillors will need to agree a budget to balance the books. The council will receive less income, not only from the cuts to our grant settlement from the Scottish Government but also from a drop in planning fees, for example, as a result of the down-turn in the Aberdeenshire economy.
To add to the challenge the Scottish Government has lifted the public sector pay cap but is not providing any additional funding to local government to meet the cost of this policy. The Unison, Unite and the GMB unions have now submitted a claim for a 6.5% pay rise.
Preparing a balanced budget in these circumstances is a real and growing challenge. We are having to look closely at everything the council does and possibly make decisions we would rather not take.
One option is to increase council tax, with a 1% increase generating £1.3m. The Scottish Government settlement for local authorities makes the assumption that all councils will increase council tax by 3% and they have reduced the allocation to local government accordingly.
It is not an easy time for local government and certainly not an easy time for Aberdeenshire.
Councillors will base decisions on our 11 priorities – drawn up after public consultation – so that we can provide the best possible services in trying circumstances for our communities.
Ian,
I am sure that many residents would not object to some increase in council tax – if it was fair. The problem is that homes have not been re-rated for years – and if that costs money -then the Scottish Government should get it done it done ASAP. otherwise the whole edifice of a fair council tax is becoming a farce.
Council tax was frozen for several years, and that did not help. A revaluation is in the gift of the government, but they are rarely popular! Nonetheless the government should bite the bullet.