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Aberdeen City Council on course for deficit of £30million by 2020

Aberdeen City Council
Aberdeen City Council

Aberdeen City Council is on course for a deficit of more than £30million by 2020, according to figures published this week.

Numbers revealed in a local authority report show that the fiscal hole is projected to rise to £19,096,000 in the 2017/18 financial year, £24,294,000 the following year and £30,489,000 in 2019/20.

The figures are based on a projection of funding from the Scottish Government falling 2% each year and council taxes rising by 3%.

North-east MSP Ross Thomson said the figures proved the Scottish Government was “clawing back” money from the area to spend it in the central belt.

He said: “These estimates from officers show that the SNP government will once again target councils for cost savings, with an enormous reduction in the level of support coming to Aberdeen.

“The city council is already the lowest funded in the country, the SNP are failing to commit to maintaining the crucial 85% funding floor and residents are being disproportionately hit by increases to council tax, stamp duty and income tax.

“The worst element of this latest cut is that the Scottish Government is clawing millions back from the north-east from council tax rises in order to spend it in the central belt.”

Finance chief Willie Young said people in the city were “fed up” with the lack of funding from the Scottish Government.

He said: “The reason the city council is heading for a deficit of £30million is because we are the lowest funded council in the whole of Scotland.

“The Scottish Government is not giving us the funding that we require.

“The problem for all councils is going to get worse unless the Scottish Government decides to properly fund them.

“Aberdeen is fed up of bottom when it comes to receiving funds.”

But Stephen Flynn, leader of the opposition group on Aberdeen City Council, said the local authority’s finance chief never took responsibility.

He said: “I would say people are a lot more likely to be fed up with Willie Young not taking responsibility for the fact he is finance chief and blaming everything on the Scottish Government.

“He has been wasting money on capital budgets which are over budget and behind time.

“That is the reason the council is heading for a deficit.

“Willie Young has shown himself to be incapable of handling the money at Aberdeen City Council.”