A rebel group of Scottish Labour councils, including Aberdeen, are to commission an independent probe on Scottish Government funding after branding Holyrood’s formula “not fit for purpose”.
The Scottish Local Government Partnership (SLGP) – which includes Aberdeen, Glasgow, Renfrewshire and South Lanarkshire Councils – will publish the document ahead of the Scottish Government’s 2017-18 budget later this year.
The breakaway group was formed 18 months ago after the four member councils split for local government umbrella organisation Cosla.
It is understood they are now in talks with the Fraser of Allander Institute about its planned report, and will look at alternate funding arrangements.
SLGP convener, and Aberdeen City Council leader, Jenny Laing said: “The future of local government finances have never looked so bleak and we hope that this report will force Nicola Sturgeon to re-examine the way funds are currently distributed and make her realise that while these cuts continue, wholesale reform of the current system is essential.
“Councils have been under sustained attack from the Scottish Government since 2009-10. This has placed huge pressures on resources and required tough prioritisation of the spend.
“While this kind of negligence continues, we believe the people of Scotland are being short-changed and what we need now is a far-reaching investigation into the scandal of council funding cuts and how they hit the lives of ordinary, hard-working families.”
The SLGP councils represent around 1.3 million Scots who live in areas which generate around half of Scotland’s economic output.
Ross Thomson, Conservative MSP for the north-east and Aberdeen councillor, said: “I would be in favour of any review of the current funding settlement for local government in Scotland, which unfairly penalises north-east councils.”
A Scottish Government spokeswoman said: “Our formula used to allocate the funding to local authorities has been developed over a number of years and is based on the relative need of each local authority.
“The formula is kept under constant review by a joint Scottish Government/Cosla group to ensure it is fair and transparent.
“We are willing to talk to individual councils and any grouping such as SLGP on matters that concern them, but when it comes to partnership negotiations on major national issues, such as local government funding, health or education, we will only negotiate with Cosla.”
SNP finance spokesman Graham Dickson added: “If they were in Cosla they would be able to negotiate from the inside.
“Outside Cosla their voice is minuscule.”