Council leaders in Aberdeen passed a “no-cuts” budget for the second time in two years yesterday – with a new plan to offer extra cash to attract staff to the city.
The Labour-led coalition will ask the Scottish Government to fund a London-style “weighting” allowance for workers to address the “significant challenges” posed by the cost of living in the north-east.
The local authority has struggled to recruit and retain teachers and care staff in particular, with many potential employees put off by high rents and house prices in the region.
The gap between average wages in the public and private sector – buoyed by the North Sea energy industry – is also viewed as an impediment to filling key vacancies.
Council leader Barney Crockett said: “Economically, the Granite City punches above its weight on an international scale. However, this means that when we recruit staff we are operating in an aggressively priced market and we have to be able to compete with commercial operators.”
The council voted through its spending plans for 2014-15, including a £397million programme of capital investment and increases in budgets for education, social care, housing and environment.
The administration also passed a motion to advise local government umbrella body the Convention of Scottish Local Authorities (Cosla) of Aberdeen’s intention to quit the group.
Civic leaders in Aberdeen have complained for years about the funding settlement the city receives.
Yesterday’s budget deal will mean a continuation of the council tax freeze, a 1% pay increase for staff and the maintenance of a “living wage” of £7.50 an hour.
There will be an extra £250,000 in the care budget for older people, a £500,000 contribution towards the 50-metre Olympic swimming pool at the Aberdeen Aquatics Centre and £400,000 for a new “step-change” cultural programme.
The council has also set aside £11.3million in reserves to deal with unexpected expenditure.
Capital spending schemes include an £18.5million additional-needs school, new buildings for Brimmond and Milltimber primary schools, a new academy at Cove and cash towards the refurbishment of the Music Hall and Art Gallery.
A sum of £250,000 has been set aside for a bid for a UK Government “city deal” to unlock major new investment.
There will be £861,000 for expanded food waste collection, while funding will continue towards transport schemes including a third Don crossing and the city bypass.
Residents’ parking permits will come down by £10 a year, while there will be no off-street charges after 8pm.
There will also be an allocation of £150,000 towards upgrade work at Hazlehead Park, with £30,000 available in 2014-15.
On a smaller scale, £75,000 goes towards a World War I commemoration at Cove playpark and all community councils will get £500 for Christmas lights.
There will be £50,000 for “repairs and activities” at Union Terrace Gardens, £30,000 for an upgrade of Stewart Park, £20,000 for Hallfield Park and £20,000 for a display of Thomas Blake Glover-related material at the art gallery.
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