Agenda item
Notice of Motion by Councillor Yuill
That this Council:
1. Notes 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
2. Agrees that strong local government is essential for our communities and:
a) Endorses COSLA’s position paper and in particular the call for an end to ring-fencing.
b) Commits to continue working for a fairer funding settlement for Aberdeen City Council.
Minutes:
The Council had before it the following notice of motion by Councillor Yuill:-
“That this Council:
1. Notes 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.
2. Agrees that strong local government is essential for our communities and:
a) Endorses COSLA’s position paper and in particular the call for an end to ring-fencing.
b) Commits to continue working for a fairer funding settlement for Aberdeen City Council.”
Councillor Yuill moved, seconded by Councillor Greig:-
That the Council -
(1) notes 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;
(2) agrees that strong local government is essential for our communities and:
a) endorses COSLA’s position paper and in particular the call for an end to ring-fencing;
b) commits 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 3rd 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) notes 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 agrees 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;
(3) notes that between 2010/11 and 2019/20, the Scottish Government budget has reduced from £33.001bn to £31.034bn - a cut of £2bn;
(4) welcomes the commitments made in the budget settlement for the expansion of Early Years Provision, Gaelic, the Pupil Equity Fund and Criminal Justice Social Work;
(5) further welcomes the additional flexibility which has been afforded to local authorities in respect of the Council Tax, as well as the proposed devolution of further powers;
(6) notes that the current funding formula which determines the size of the grant provided to each individual local authority is agreed by COSLA Leaders and Scottish Ministers;
(7) agrees that this formula does not adequately meet the needs of Aberdeen City Council;
(8) therefore, instructs the Chief Executive to write to the President and Chief Executive of COSLA stating this view and also confirming Aberdeen City Council’s full commitment to playing a proactive role in the development of a new rules based framework for local government funding; and
(9) further welcomes the commitment by the Scottish Government to bring forward a three-year settlement for local government from 2020-21.
Councillor Lumsden moved as an amendment, seconded by Councillor Malik:-
That the Council -
(1) notes 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;
(2) agrees that strong local government is essential for our communities and:
a) endorses COSLA’s position paper and in particular the call for an end to ring-fencing;
b) commits 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 3rd 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) notes 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 agrees 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;
Councillor Flynn moved as a further amendment, seconded by Councillor Nicoll:-
That the Council -
(1) notes that between 2010/11 and 2019/20, the Scottish Government budget has reduced from £33.001bn to £31.034bn - a cut of £2bn;
(2) welcomes the commitments made in the budget settlement for the expansion of Early Years Provision, Gaelic, the Pupil Equity Fund and Criminal Justice Social Work;
(3) further welcomes the additional flexibility which has been afforded to local authorities in respect of the Council Tax, as well as the proposed devolution of further powers;
(4) notes that the current funding formula which determines the size of the grant provided to each individual local authority is agreed by COSLA Leaders and Scottish Ministers;
(5) agrees that this formula does not adequately meet the needs of Aberdeen City Council;
(6) therefore, instructs the Chief Executive to write to the President and Chief Executive of COSLA stating this view and also confirming Aberdeen City Council’s full commitment to playing a proactive role in the development of a new rules based framework for local government funding; and
(7) further welcomes the commitment by the Scottish Government to bring forward a three-year settlement for local government from 2020-21.
There being a motion and two amendments, the Council first divided between the amendment by Councillor Lumsden and the amendment by Councillor Flynn.
On a division, there voted:-
For the amendment by Councillor Lumsden (23) - Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Lesley Dunbar, Duncan, Donnelly, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Avril MacKenzie, Macdonald, Malik, Mason MSP, Reynolds, Sellar and Wheeler.
For the amendment by Councillor Flynn (19) - Councillors Al-Samarai, Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Jackie Dunbar, Flynn, Henrickson, Hutchison, MacGregor, Catriona Mackenzie, McLellan, McRae, Nicoll, Noble, Sandy Stuart and Townson.
Declined to vote (3) - Councillors Delaney, Greig and Yuill.
The Council then divided between the motion and the amendment by Councillor Lumsden.
On a division, there voted:-
For the motion (4) - Councillors Delaney, Greig, Townson and Yuill.
For the amendment by Councillor Lumsden (23) - Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Lesley Dunbar, Duncan, Donnelly, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Avril MacKenzie, Macdonald, Malik, Mason MSP, Reynolds, Sellar and Wheeler.
Declined to vote (18) - Councillors Al-Samarai, Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Jackie Dunbar, Flynn, Henrickson, Hutchison, MacGregor, Catriona Mackenzie, McLellan, McRae, Nicoll, Noble and Sandy Stuart.
The Council resolved:-
to adopt the amendment by Councillor Lumsden.