Issue - meetings

(i)             to note the contents of the report;

(ii)           to agree, subject to any further clarification from Scottish Government, that the General Fund budget model for 2025/26 will assume the cost of increased Employer National Insurance Contributions will be fully funded;

(iii)          to note that COSLA has identified that the wider cost of Employer National Insurance Contributions increasing has implications for services commissioned and funded to deliver public services;

(iv)          to agree that the Chief Officer - Finance, working with the Extended Corporate Management team, update the General Fund financial model for 2025/26 for the Local Government Financial Settlement for 2025/26 from Scottish Government and to take account of the analysis work described in the report;

(v)           to agree, due to the new financial risks, that updated financial modelling is done in conjunction with NHS Grampian, for the Aberdeen City Integration Joint Board and included in the General Fund budget report for 2025/26;

(vi)          to note that the Council will be presented with the final budget position and the request to approve a balanced General Fund Revenue and Capital Budget, and set Council Tax for 2025/26 at the Budget meeting on 5 March 2025;

(vii)        to note that the Scottish Government’s proposed budget, presented to the Scottish Parliament on 4 December 2024, provides an uplift to local authority budgets in a continued context of financial challenge for public services, and that this budget goes some way to meeting COSLA’s asks; however, recognises it will take more than a single year’s settlement to restore the financial position of local authorities;

(viii)       to note that the Scottish Government estimates (published 20 November 2024) a £549m cost implication, including £265m cost to local government, of employer National Insurance Contributions (NICs) changes to the directly employed devolved Scottish public sector workforce as a result of UK employer NICs policy;

(the Scottish Government, 20 November 2024)

(ix)          to agree the UK Government must urgently clarify additional funding to protect Scotland’s local government, including ALEOs and partners who deliver statutory services, from additional costs arising from the rise in employer NIC;

(x)           to instruct the Chief Executive to write to the UK Government’s Chancellor of the Exchequer and Secretary of State for Scotland, and the Scottish Government’s Cabinet Secretary for Finance and Local Government, setting out the costs of NIC to Aberdeen City Council, and Aberdeen City Council’s budget position if funding for NIC is not provided from the UK Government in addition to the Local Government Financial Settlement for 2025/26; and

(xi)          to note that the Chief Executive would organise a session with elected members to look at levels of engagement with the budget consultation and to consider suggestions for improvement.

The Council had before it a report by the Chief Officer - Finance and the Chief Officer - Data Insights which satisfied the requirements of the approved Budget Protocol, in respect of reporting to Council the results of the Phase 2 Public Budget Consultation, which included details of the current estimated budget position for 2025/26, the budget options and the Integrated Impact Assessments. In addition, the report provided a brief update on the budget model following the UK Budget, announced on 30 October 2024, where it was currently known to affect the Council.

The report recommended:-

that the Council -

(a)           note the content of the report;

(b)           agree, subject to any further clarification from Scottish Government, that the General Fund budget model for 2025/26 would assume the cost of increased Employer National Insurance Contributions would be fully funded;

(c)           note that COSLA had identified that the wider cost of Employer National Insurance Contributions increasing had implications for services commissioned and funded to deliver public services;

(d)           agree that the Chief Officer - Finance, working with the Extended Corporate Management team, update the General Fund financial model for 2025/26 for the Local Government Financial Settlement for 2025/26 from Scottish Government and to take account of the analysis work described in the report;

(e)           agree, due to the new financial risks, that updated financial modelling be done in conjunction with NHS Grampian, for the Aberdeen City Integration Joint Board and included in the General Fund budget report for 2025/26; and

(f)             note that the Council would be presented with the final budget position and the request to approve a balanced General Fund Revenue and Capital Budget, and set Council Tax for 2025/26 at the Budget meeting on 5 March 2025.

Councillor McLellan moved, seconded by the Depute Provost:-

          That the Council -   

(1)       approves the recommendations;

(2)       notes that the Scottish Government’s proposed budget, presented to the Scottish Parliament on 4 December 2024, provides an uplift to local authority budgets in a continued context of financial challenge for public services, and that this budget goes some way to meeting COSLA’s asks; however, recognises it will take more than a single year’s settlement to restore the financial position of local authorities;

(3)       notes that the Scottish Government estimates (published 20 November 2024) a £549m cost implication, including £265m cost to local government, of employer National Insurance Contributions (NICs) changes to the directly employed devolved Scottish public sector workforce as a result of UK employer NICs policy;

(the Scottish Government, 20 November 2024)

(4)       agrees the UK Government must urgently clarify additional funding to protect Scotland’s local government, including ALEOs and partners who deliver statutory services, from additional costs arising from the  ...  view the full minutes text for item 9