A trade union has backed calls for Aberdeen council chiefs to be allowed to retain nearly £30million of business rates revenue.
Aberdeen City Council is facing cuts of up to £50million when it sets its budget next month, with all options on the table.
In a desperate attempt to generate cash, the ruling administration wrote to Finance Secretary Derek Mackay asking to keep the extra £28million in rates the authority predicts it will generate over the collection target for 2018-19.
Mr Mackay rejected the request, and said that authorities keep all rates collected – but the administration insists that anything made above the predicted amount is simply taken off the government grant.
Now the Unite union, which represents many local authority workers, has added their weight to the council’s call, penning their own letter to Mr Mackay and Local Government Minister – and Aberdeen Central MSP – Kevin Stewart.
In the letter, Unite regional representative Tommy Campbell wrote: “Aberdeen City Council has around 8,000 employees who deliver vital services which the people of Aberdeen rely on.
“Aberdeen City Council advised that the general revenue grant agreed between Scottish Government and Cosla for the financial year 2018/19 was £93million, with business rates collected being £228million. We understand that Aberdeen City Council has collected £256million, a difference of £28million.
“In order that our Unite members’ employer does not suffer unnecessary cuts to its already fragile budget, we are asking that the Scottish Government allow Aberdeen City Council to retain this extra £28million without a reduction in the £93million general revenue grant already agreed between Cosla and the Scottish Government, meaning that its full budget would be £349million.”
And last night, Conservative councillor Ryan Houghton said that Mr Stewart should use his position in government to get better funding.
He added: “It seems our MSP is too afraid to stand up for the city against his own party in Edinburgh when the time calls.”
A Scottish Government spokeswoman said: “Aberdeen Council will receive £375.7 million to fund local services in 2019-20. Using their council tax powers they could also generate an additional £5.8 million meaning a total of £381.6million. This represents an increase of £21.2 million or 5.9%.
“Like all councils, Aberdeen City Council already retains every penny that it raises in council tax and business rates.”