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Local government budget proposals announced

John Swinney
John Swinney

Deputy First Minister John Swinney unveiled his £10.8billion local government budget yesterday and claimed it would help stimulate economic growth.

He said the 2015-16 spending plans would protect front-line council services and support the most vulnerable people in society despite Westminster austerity cuts.

Mr Swinney, who is also finance secretary, told MSPs the package included money to fund the council tax freeze, mitigate the effects of the bedroom tax, hire probationer teachers for a year and provide free school meals for P1-3 children.

But councillors in Aberdeen, Aberdeenshire, Highland and Moray have all expressed concern that the council tax freeze had not been properly funded in the past and restricted the ability to raise funds to prevent budget cuts.

Mr Swinney sparked a row after he told MSPs that Aberdeen City Council would receive an extra £10million in the next financial year.

He said the council would be allocated £328million in revenue funding, up from £318million in 2014-15.

Mr Swinney said the government had applied the 85% funding formula to the settlement and had done so every year since 2011.

But north-east Liberal Democrat MSP Alison McInnes claimed the council was being “shortchanged” by £13million because it would only receive 81.6% of the average per head of population in funding.

“Aberdeen is the most poorly funded council in Scotland and people are sick and tired of the energy capital of Europe being failed by the SNP,” she added.

“Proper funding is crucial for jobs, growth and infrastructure.”

North-east Labour MSP Richard Baker claimed the SNP had “yet again let the city down”.

“The ability to invest to support jobs and business in the city is so important for its long term future, but this announcement will restrict vital investment,” he said.

Bur Mr Swinney insisted the proposed settlement was “good news” for Aberdeen.

“The 85% funding formula has been applied for the City of Aberdeen and of course it is delivering significant benefit,” he added.

Aberdeen Donside MSP Mark McDonald, and SNP council group leader Callum McCaig welcomed the news, particularly confirmation that the local authority was at liberty to use a portion of its £116million cash reserves to support service change.