MORAY Council is poised to break away from local government umbrella body Cosla amid a furious row over a £4million funding shortfall.
Councillors will decide next week whether to follow the same path as their counterparts in Aberdeen and leave the Convention of Scottish Local Authorities.
The organisation now faces the threat of losing as many as nine of its members.
The rebellion is against a backdrop of claims that councils – including Moray – are being short-changed in favour of local authorities in the central belt.
Cosla has decided to freeze the formula used to distribute Scottish Government funds among local authorities.
Ironically, Aberdeen’s leaders voted with Labour colleagues from other authorities to back the move – costing the city £7.3million in the process.
If Cosla had voted, as is normal practice, for a system based on updating “indicators” – mainly based on population growth – then Moray would have received £4million more in its revenue allocation.
Councillors in the region are already having to make large-scale cuts to reduce spending by £20million over the next three years.
Unpopular decisions have already been taken to close four libraries, reduce the number of classroom assistants and cut the budget for maintaining parks.
Councillors will decide on Tuesday at a specially-convened meeting whether to quit Cosla.
Roddy Burns, the council’s chief executive, says in a report for councillors: “Acceptance of the Cosla decision could diminish the council’s future bargaining position with the Scottish Government and other funding bodies if it is seen to agree to a reduction of this magnitude.
“Ultimately, this is a balance of risk and a question of timing. If the council wishes to quit, then it must serve notice by March 31 this year.”
Figures show the region would suffer a 2.78% funding loss under the formula – the biggest in percentage terms in the country.
Allan Wright, the leader of Moray Council, said last night: “I disagree violently with the decision that Cosla has taken.
“My own personal view is that the council should serve notice that it will withdraw unless the decision is changed.
However, it’s up to my fellow councillors to decide what we should do.” The next meeting of Cosla is scheduled for April 25. Local authorities have left the organisation in the past following rows over how cash was divided. In the early 2000s Glasgow, Falkirk and Clackmannanshire all decided to leave, before returning later.