Decision details

(i)           to note the contents of the COSLA position paper “Fair Funding for Essential Services 2019/20” and in particular:

(a)      that Local Government budgets have been cut by 4% in real terms over the last five years as opposed to a 0.4% cut in the Scottish budget.

(b)      that savings can only be made on 42% of the ‘unprotected’ Local Government budget.

(c)       that this amounts to an 8% cut on these services or 20% of the unprotected budget; and

(ii)          to agree that strong local government is essential for our communities and:

(a)      endorse COSLA’s position paper and in particular the call for an end to ring-fencing.

(b)      commit to continue working for a fairer funding settlement for Aberdeen City Council by agreeing to submit the following motion to COSLA convention at the end of March 2019:-

COSLA notes Aberdeen City Council, the 3^rd biggest city in Scotland, only receives £60.199m in General Revenue Grant. Notes Aberdeen City Council generates 86% of its own revenue through Council tax and Business Rates, the highest percentage in Scotland. Seeks COSLA’s support for Aberdeen City Council to retain the extra £28m it raised in Business Rates without a reduction in the General Revenue Grant as agreed between COSLA and the Scottish Government. Seeks a full review of the distribution formula which disadvantages Aberdeen City Council massively.

(c)       note that Aberdeen City Council raised an additional £28m in non-domestic rates within the city in 2018/19 beyond what was anticipated this time last year and that all of the additional revenue will be clawed back by the Scottish Government making a £28m cut in the general revenue grant; and agree that the Chief Executive make representations to the Scottish Government proposing that Aberdeen is allowed to retain this extra £28m raised in Business Rates without a reduction in the General Revenue Grant already agreed between COSLA and the Scottish Government.