Aberdeen councillors agree to increase council tax by 5%

Council tax in Aberdeen is to increase by 5% from April to help the local authority tackle ongoing financial pressures.

Councillors met at the city’s Town House today to approve its crucial budget for the year ahead.

The council tax rise will go towards the local authority’s efforts to plug an estimated £46.6 million financial black hole.

Members of the SNP and Lib Dems ‘partnership’ included the 5% increase as part of its first budget.

Ahead of the meeting, the SNP ruled out a proposed 10% hike that would have resulted in the council receiving an extra £12.9 million.

Officers argued the 10% rise would “provide protection for cost and demand increases” in the years ahead.

They also said the additional income would improve the council’s sustainability.

Why was the 5% rise suggested?

But the reduced proposal was put forward at the budget meeting by SNP councillor Alex McLellan.

He said the 5% increase was needed amid rising cost pressures.

Mr McLellan, who is also convener of the finance and resources committee, said: “Our operating budget stands at £540 million for 2023/24.

“Inflation is running at around 10% – that impacts massively on the cost of delivering services upon which we all depend.

“Demand is increasing, notwithstanding our efforts to find efficiencies, and where we can offset our expenditure by reasonably generating income we will do so.”

The partnership proposed a 5% council tax increase that will generate an additional £6.5m over the next year.

Mr McLellan added: “We cannot, given the cost pressures we face, leave charges untouched.”

What does the increase mean for Aberdeen council tax payers?

The 5% council tax rise will see residents in Band D pay £1,490 per year – up from the current £1,418.62.

The increase will mean Aberdeen City Council will gain an estimated £6.462m in additional income.

Currently, the local authority collects just under £130m from council tax.

Were any other proposals made?

In their proposed budget, Aberdeen Labour also suggested a 5% hike in council tax.

While the Conservative group also put forward a proposed council tax rise, they wanted to see it go up by just 3% instead.

Group leader, councillor Ryan Houghton, had previously said keeping council tax low was needed to “protect the most vulnerable”.

However, following a vote, the partnership’s budget was passed by 24 votes to 12.

Seven councillors chose not to vote on the matter.

The council tax increase will come into force on April 1.