Agenda item

(A)       With reference to article 6 of the minute of its meeting of 21 February 2013, the Committee had before it a report by the Director of Corporate Governance which responded to part of the following motion by Councillor McCaig:

“In order to ensure that Aberdeen City Council reaps the financial benefits of the Scottish Government’s Business Rates Incentive Scheme, Council instructs the Director of Enterprise, Planning and Infrastructure to consider measures to boost the city’s business rates income and agrees that 50% of any additional funding received by the Council as a result of this scheme be reinvested in economic development.”

The report recommended –

that the Committee –

(a)       agree to receive a further report on the current position of the scheme, and in conjunction with the Director of Enterprise, Planning and Infrastructure address the remaining aspects of the motion, and

(b)       otherwise note the report.

Councillor Crockett then moved, seconded by Councillor Yuill:-

That the Committee:  (1) approve the recommendations contained in the report; (2) note that the Scottish Government introduced a scheme called the Business Rates Incentivisation Scheme in the financial year 2012/2013 which set a target level of Non Domestic Rate income; (3) note that the Council was given a target of £164 million pounds by the Scottish Government; (4) to note that the Council’s mid year estimate for the collection of Non Domestic Rate Income was projected to be £176.1million; (5) note that the Scottish Government has increased the Council’s target level for 2012/2013 to £175.5million without consultation with Elected Members of the Council; (6) note that if the Scottish Government had agreed to abide by its original agreement with Aberdeen City Council the Council would have received an extra £5.8million in grant; (7) note that due to the Scottish Government reneging on its promise Aberdeen City Council now found itself receiving only £300,000 a difference of £5.5million; (8) note that Aberdeen was the lowest funded Council per capita 32 out of 32 local authorities in Scotland and that the Council no longer receives the 85% floor; and (9) call on Aberdeen’s elected representatives at all levels to support the ongoing campaign to receive a fairer funding settlement for Aberdeen.

Councillor McCaig moved as an amendment, seconded by Councillor Cameron:-

That the Committee approve the recommendations contained in the report; and call on Aberdeen’s elected representatives at all levels to support the ongoing campaign to receive a fairer funding settlement for Aberdeen.

On a division, there voted:-  For the motion (10) - the Convener; and Councillors Crockett, Forsyth, Graham, Ironside, Laing, Malone, Milne, Reynolds and Yuill.  For the amendment (5) - Councillors Cameron, Dickson, Jacqui Dunbar, Kiddie and McCaig.

The Committee resolved:-

to adopt the motion.

(B)       With reference to article 6 of the minute of its meeting of 21 February 2013, the Committee received an oral update from the Director of Corporate Governance regarding progress of the Committee’s previous decision to commission an independent consultant to bring forward a report, based on a research study, exploring the existing financial settlement and its impact on the contribution Aberdeen makes to Scotland and the UK and how a different or better funding settlement could benefit Aberdeen and the remainder of Scotland.

The Director advised that a drafting scope for the aforementioned study had been completed and a report would be submitted to the next of the Committee.

The Committee resolved:-

to note the update.