Dundee City Council’s SNP leader will write to Nicola Sturgeon “highlighting the massive real terms cut to council funding and the impact this budget settlement would have on vital local services.”
John Alexander’s letter will also criticise the Scottish Government’s provisional December budget for its “impact on on the most vulnerable in our communities”.
The action gained cross-party support, including from SNP councillors, and was part of a Liberal Democrat group amendment agreed at the policy and resources committee.
The committee approved a report by executive director Robert Emmott, on the “implications for the city council” of the local government budget delivered by Deputy First Minister, John Swinney.
Mr Swinney said on December 15, that the budget provides an extra £550 million in funding for Scotland’s 32 councils.
But Cosla, the umbrella body for Scotland’s councils, calculated the increase as £71m, once current policy commitments are taken into account.
‘A derisory settlement’
The amendment, put forward by Liberal Democrat group leader, Fraser Macpherson, also challenged “in the strongest possible terms the presentation of the £550m as additional funding”.
Labour group leader and councillor for Strathmartine, Kevin Keenan said: “When the depute first minister come out and said what a marvellous budget he was giving to local government – it certainly hasn’t come through to Dundee in any way”.
Mr Macpherson said: “The spin about £550m additional funding, actually in reality when you take existing (funding) commitments, as Bailie Keenan alludes to, is only £71m.
“It’s a deeply concerning situation. Here we are, with a frankly derisory settlement – not just for Dundee – but for local authorities generally.”
The Scottish parliament will debate Mr Swinney’s proposed budget this month.
Based on assumptions of what the final settlement will be, Robert Emmott’s report says the council needs to save £18.1 million” to balance the budget.
Additionally, “it is recommended that the Council set aside £3.8m to help meet inflationary pressures in 2023/24. This would reduce the savings needed to £14.3m”.
An assumed 3% rise in the council tax “would reduce the savings requirement to £12.5m”.
‘Council to determine council tax’
Mr Emmott said: “There’s a planning assumption of a 3% council tax increase, but no decision is made on that and that will be a matter for the council itself to determine.
“We will make that clear in the budget volume, the assumptions that we’ve made and it will be, as I’ve said, for yourselves to consider what budget proposals to bring forward to help close that gap”.
Before the amendment was agreed, council leader, John Alexander, said: “There is ongoing engagement and clearly through Cosla, we are continuing to explore that discussion with the Scottish Government.
“The prevailing winds are extremely challenging; there’s no easy answers. You take money from one area to put into another area, that presents a new set of challenges.
“For what it’s worth, I’m very heavily engaged in that agenda and working with colleagues across Scotland to continue to push through the best possible budget settlement for Dundee and for the issues we want to address in the city.”
