Aberdeen City Council’s finance chief won’t rule out an 11% council tax hike ahead of next week’s budget meeting.
Finance convener Alex McLellan warned that “difficult decisions” will have to be made, blaming National Insurance increases for the challenges the local authority is facing.
The SNP councillor also inclined that the Beach Ballroom could be spared in the administration’s budget plans – despite officers’ suggestions to mothball it.
However, he stressed that something will need to be done to turn the venue around so it’s not a “drain on council’s finances”.
Each of the possible options put forward by finance officers could save the local authority £150,000.
This comes ahead of a crunch meeting on Wednesday, March 5, as the council battles to plug an £18 million black hole in their finances.
Why are council making harsh budget cuts?
Speaking to The P&J, Mr McLellan was keen to keep his cards close to his chest.
He said: “We don’t want to give our hand away early doors. Our budget will be published the day before the budget meeting.
“Elected councillors have incredibly difficult decisions in terms of balancing the books.
“There is that choice between raising the council tax or making reductions to the services that are provided.
“It will be a mix of a council tax rise and a reduction in services to see that happen.”
How likely is the 11% council tax rise?
The Seaton, Tillydrone and Old Aberdeen councillor blamed the UK Government’s National Insurance rises for the need to cut costs – and increase the money flowing in.
These extra contributions could set the council back by as much £8 million.
Mr McLellan didn’t rule out introducing an 11% council tax rise to help them balance the books, quoting what other local authorities have done to fill their coffers.
He continued: “I think it’s fair to say that councils across the country have been proposing a rise in the region of 10% as they look to deal with increased costs.
“It’s quite clear that officials have had to amend their initial proposals to reflect the fact that we have unfunded National Insurance contributions which are going to be hitting the council hard.”
What about the Beach Ballroom?
One curve ball that came from last week’s budget papers was the potential mothballing of the historic Beach Ballroom.
The venue is a few years shy of its centenary, and has hosted bands as legendary as The Beatles and Pink Floyd in its near 100 year stint at the seafront.
However, finance officers are asking councillors to consider offloading it – or closing it for an indefinite period of time – to save cash.
Mr McLellan would not be drawn on what’s next for the Beach Ballroom but he is hopeful it has a long future at the seafront.
He said: “We appreciate that the Beach Ballroom is an iconic building in the city, but we also have to recognise that it’s obviously not making a profit.
“So we need to see what can be done to turn that around, but that asset certainly has a future.
“It’s obviously part of the wider plan, agenda and vision for the beach.
“That asset is obviously part of our long-term vision, and we certainly need to turn it around to make sure it’s making a profit and isn’t being a drain on the council.”
You can see the full Aberdeen budget papers for 2025/26 on the council’s website.
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