Budget a missed opportunity say councillors

Democratic Independent councillors on Aberdeenshire Council put forward a bold new approach when the authority discussed its budget for 2012/13 on Thursday 9 February.

The Democratic Independent group's budget proposals centred on using the Council's prudential borrowing powers to invest in renewable energy generation. (Note 1)

Using £4.665 million of unallocated funding in the officers' draft budget for 2012/13 and £30.635 million of new borrowing, the councillors' plan was for Aberdeenshire Council to invest up to £24 million in 20 wind turbines on Council-owned sites and up to £11.3 million in photovoltaic solar panels on Council buildings. (Note 2)

The electricity generated would yield an income for the Council of over £2 million per year after payment of financing costs. Allowance had been made for expected changes to the feed in tarriff rates due to be announced on 9 February. (Note 3)

The Democratic Independent councillors argued that the additional income should be used by the Council to avoid planned cuts in key Council services.

The group's proposed revenue budget for 2012/13 reversed the £1.235 million cut in the budget allocated for primary classroom assistants (pupil support assistants) due to come into effect after April 2012.  This cut in funding for primary classroom assistants was voted through in November 2010 by Liberal Democrat, Conservative and SNP councillors as part of a two-year programme of budget cuts affecting all Council services.

The Democratic Independent councillors also aimed to prevent some of the planned cuts to the social work budget, again using income from their proposed renewable energy installations.

The additional renewable energy generation by the Council would also have helped meet targets for reducing greenhouse gas emissions.

Commenting, Cllr Paul Johnston said, "These are difficult times for local government. There are real-terms reductions in grant funding and a Council Tax freeze. Councils should realise we have to change the way we think and take new approaches to funding public services. We wanted Aberdeenshire Council to take a bold step and start creating resources and looking to the future."

Cllr Martin Ford said, "Many individuals and businesses are investing in and getting an income from renewable energy - and the Council can so the same. The Council owns both land and many buildings and is able to borrow to invest in 'spend to save' initiatives. Investing in renewable energy is a win-win-win for Aberdeenshire - it will help the Council reduce carbon emissions and protect jobs and public services."

"The Democratic Independent group's proposals would have yielded an income after covering all borrowing and finance costs of over £2 million per annum for the Council to use for funding public services. This would have been an on-going benefit, additional money for years to come."

The Democratic Independent councillors have previously opposed the cut to the primary classroom assistants budget and other cuts to essential public services. "We put forward a very practical and achievable way of avoiding the loss of primary classroom assistants, and preventing other cuts," said Cllr Ford.

"While all the parties followed convention and supported their own budget proposals on the day, I believe the Council will return to the principle of using renewable energy to raise income to fund public services."

ENDS

Contacts: Cllr Martin Ford 01224 790052, Cllr Paul Johnston 01651 851690

Notes

1. Aberdeenshire Council's planned borrowing for 2012/13 is currently £100 million less than its approved borrowing limit.

2. The cost and income calculations are based on eight 800 kW turbines and twelve 330 kW turbines, or equivalent generating capacity, and 2750 kWh total photovoltaic systems.

3. See: http://www.decc.gov.uk/en/content/cms/news/chrishuhne_fit/chrishuhne_fit.aspx