The SNP group last night claimed Aberdeen city council’s ruling administration had “lost” £170million after refusing to back a rents rise of 4.6%.
Council officers had recommended the increase, but at yesterday’s budget meeting, the ruling Conservative, Aberdeen Labour and independent alliance put forward an increase of 2.6%.
Last night, the opposition SNP group claimed the decision – coupled with freezing rents last year, meant the authority’s 30-year housing plan was heading for a £170million funding gap.
Group housing spokeswoman Jackie Dunbar said she had received guidance from council financial officers on the figures.
She said: “£170million now lost. Think of how many properties could have been built with this.”
She also put forward a proposal that the authority should look at buying back former council houses, which was accepted by the administration.
But council co-leader Jenny Laing stood by the decision, while hailing the authority’s recently announced £250million plan for 2,000 council houses over five years.
She added: “We think 2.6% is justified. You need to consider that average rents have dropped in the city by 4.3%.”
Aberdeen city council decides on moderate rent rises