Aberdeen’s council co-leaders are holding crunch talks with Finance Secretary Derek Mackay over a “missing” £1.6 million in the council’s funding settlement.
Conservative Douglas Lumsden and Aberdeen Labour’s Jenny Laing believe their block grant from the Scottish Government is short by £1.6 million due to a Holyrood accountancy error.
A policy exists whereby, if a council’s annual grant from central government is less than 85% of the Scottish average funding for a council, the sum is “topped-up” by Holyrood.
Aberdeen is the only council that requires this “floor” funding.
Council leaders said they had calculated that they had received 84.69%, just short of the 85% floor but meaning leading to the shortfall.
But Mr Mackay has rubbished these claims saying the funding over several years shows a “real terms increase” in the cash given to the council.
He said that since the funding floor initiative was launched in 2012-2013 the authority has received 85.42% of the Scottish average.
Mr Lumsden and Mrs Laing will travel to Edinburgh today to discuss the matter.
Mr Lumsden said: “It has always been our understanding that the 85% policy applies every year- you can’t just use averages to find what you want.
“We are hoping for productive talks and it is good we have Cosla’s support.”
A Scottish Government spokesman said that since the funding floor was introduced in 2012 the allocation to has never been precisely 85% and this is the first year that the council has raised it as an issue.
Mr Mackay said: “Aberdeen City Council has received more than £50million in additional funding through the Scottish Government’s 85% floor.
“Our commitment to the area has been met, and we will continue to deliver.”
