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Aberdeenshire Council Budget Cuts: Demand to Protect Education and Social Services

Last Thursday (25 November), Aberdeenshire Council took key decisions on cutting spending on public services. First, the Council had to decide whether it would accept Finance Secretary John Swinney's 'offer' of a funding cut of 2.6 per cent (£10.243 million) in return for the Council agreeing to a package of measures including no increase in the Council Tax.

On this the Council was unanimous - because the alternative was so much worse. If the Council refused to comply with the conditions set by Mr Swinney for a 2.6 per cent cut in funding, funding would be cut instead by 6.4 per cent, or £27.093 million.

 

Faced with losing an additional £16.850 million in grant, the Council

effectively had no choice but to agree to meet the requirements for the smaller cut in funding.

 

Said Cllr Martin Ford: "Agreeing to freeze the Council Tax is not the

same as agreeing with freezing the Council Tax - as several councillors made clear.

 

"Enforcing a Council Tax freeze on councils is wrong in principle. The decision as to what balance to strike between raising additional revenue and cutting council services is properly one for councils and not the Scottish Government.

 

"Had Mr Swinney allowed councils to decide on the level of Council Tax

next year, some of the cuts to services could have been avoided. In the case of Aberdeenshire, the Band D Council Tax is £1141. A one per cent increase, £11.41 per year or 22 pence per week, would bring in around £1.2 million to help pay for public services."

 

 

On behalf of the Democratic Independent councillors, Cllr

Paul Johnston proposed:

 

Aberdeenshire Council:

1. Asserts that the decision as to what balance to strike between raising additional revenue and cutting council services is properly one for councils and not the Scottish Government.

2. Notes that a Council Tax freeze in combination with a cut in grant support for the Council is fundamentally different from a freeze in return for additional government grant.

3. Notes that by making some grant support conditional on no increase

in the Council Tax, the Scottish Government has effectively re-introduced a capping regime - only with the cap set at no increase at all.

4. Deplores the Scottish Government's decision to exacerbate the cuts arising from the reduction in the Council's government grant by

extending the Council Tax freeze.

5. Notes that a rise in the Council Tax of one per cent (£11.41 per year or 22 pence per week for a Band D property) would bring in £1.2 million to fund public services, enabling the Council, for example, to avoid cuts in front-line social work services for 2011/12 and a cut in the number of secondary permanent teachers (SR68, SR69, SR70, SR74, SR75, SR76, SR78 in Appendix 5 to paper 4, and E55 and E32 in Appendix 4 to paper 4, total projected saving £1.138 million).

6. Calls on the opposition parties in the Scottish Parliament to do all they can to secure a change to the Scottish Government's Council Tax policy.

 

The Council instructs the Chief Executive to write to the Finance Secretary expressing the Council's opposition to the Scottish Government's policy of removing the option from local councils of increasing the Council Tax by even the smallest amount to preserve important public services, but intimating the Council's acceptance, under duress, of the Council Tax freeze and other measures in order to avoid a 6.4 per cent (£27.093 million) cut in funding.

 

Liberal Democrat, Conservative and SNP councillors voted together to defeat the Democratic Independent's proposal. The Council therefore accepted the Council Tax freeze (and the cuts that will result) without formal comment.

 

The second debate last Thursday was on the package of cuts identified to make

savings of £27 million. In effect, this was the administration's budget. Again, there was no SNP amendment.

 

On behalf of the Democratic Independent group, Cllr Martin Ford proposed:

 

Aberdeenshire Council:

1. Agrees that while reducing the UK budget deficit is essential, the UK Government's choice of savage cuts to welfare and public services is regressive and unfair because it hits the poorest and most vulnerable hardest;

2. Notes that leading economists argue that large-scale cuts in public

spending now are a risk to economic recovery, and; 3. Supports tax increases on the wealthy as a fair way of bringing down the budget deficit, e.g. by taxing capital gains at the same rate as income, closing tax avoidance loopholes and an additional property tax on all properties valued at over £2 million.

 

The Council instructs the Chief Executive to write to the Prime Minister expressing the Council's opposition to the Government's strategy for deficit reduction and highlighting the consequences for the users of the Council's services, as set out in Appendix 5.

 

Aberdeenshire Council:

1. Pledges to do all it can to reduce the impact of budget cuts and especially to protect services relied on by the most vulnerable in

society.

2. Notes that, in addition to the cuts listed in Appendix 5, some of the 'efficiencies' listed in Appendix 4 involve a reduction in service

(e.g. E27, E59 and E60).

3. Will seek alternative savings before setting its budget in February to avoid as many as possible of the proposed cuts to education and

social work listed in Appendix 5.

4. Instructs officers to work up proposals for renewable energy generation and further energy efficiency savings in time for these to

be included in the 2011/12 budget.

5. Commits to consulting partners, community groups and staff about savings options that could be included in the 2011/12 budget.

6. Agrees to conduct a full and comprehensive public consultation process prior to making firm decisions about the budget for 2012/13.

7. Notes that the choice of savings to be made in the 2011/12 budget will be decided in February 2011, but agrees that officers may

undertake the necessary preparatory work to enable the Council to make the budget savings listed in Appendices 3, 4 and 5.

 

Again, Liberal Democrat, Conservative and SNP councillors voted together to proceed with the cuts package supported by the

administration.

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