Aberdeenshire Council agreed to freeze council tax for a third year when it met to set its budget for 2010/11 last week while also agreeing almost £4.5 million of savings.
The local authority will have to make significant savings over the next few years as it tackles a growing and ageing population, greater demand for services and reductions in Government Grant.
The Liberal Democrat/Conservative Administration put f
orward a range of proposals to achieve a balanced budget.
Proposals included freezing council tax and accepting the additional grant from Government of £3.5 million. This will keep Aberdeenshire as the council with the 12th lowest council tax in Scotland and result in an annual charge of £1,141 for a Band D home.
Proposals also included:
Removing £682,000 from Community Wellbeing through a combination of non-filling of vacant posts, a review of services commissioned through partnerships with external agencies, and a review of the range and scope of day
provision services;
Removal of £250,000 from Life Long Learning through a review of the Support for Learners Auxiliary provision;
Removal of £14,000 from Developing Our Partnerships by withdrawing support for a central administration function within the North East Scotland Chief Executives' Forum and undertaking the support in-house
Removal of £60,000 from Sustainable Environment by a more efficient use of office accommodation and non-filling of vacant posts
Generation of £100,000 savings from Corporate Improvement by accelerating the transfer of frontline services to the Contact Centre.
Significant changes were proposed to realign budgets within the Education, Learning and Leisure Service, in order to deliver strategic priorities and free up savings. The administration said that it did not support an increase in nursery provision, or the introduction of free school meals for all Primary One to Primary Three pupils.
However they proposed an increase Primary Class Contact Time to enhance the early stages of over 8,000 children by supporting the creation of up to 50 additional teaching jobs. This initiative will cost over £1.6 million and the Director of Education, Learning and Leisure put forward proposals on how to deliver this within existing budgets and with little impact on frontline services.
Savings would be made through a combination of staff turnover, community learning and development, library services, reductions in budgets devolved to schools for repairs, planning and continuous professional development and travel and subsistence.
Council leader Councillor Anne Robertson said: "We are determined to deliver on the Council's strategic priorities, but we do so in a period of financial uncertainty and where the public sector is facing significant financial challenges.
"Aberdeenshire Council cannot escape the reality of the economic recession, but it can play its part in responding to the concerns of our tax payers and customers."
The administration's budget was seconded by the vice-chair of Policy and Resources, Councillor Jim Gifford, who said: "These budget proposals will deliver real improvements to our services. There is money for economic development and capital investment in our infrastructure, both of which will significantly help our local businesses as the economy starts to improve."
"We are facing challenging times, but this budget puts Aberdeenshire Council in a strong position for the times ahead."
An alternative budget was put forward by the SNP. Councillor Joanna Strathdee welcomed proposals to freeze council tax for a third consecutive year and also supported the use of policy-led budgeting.
However, she explained that they could not agree with the administration's recommendation not to fund Concordat priorities such as free school meals and explained that the SNP had come up with alternative proposals to deliver the required £4.449m savings.
Councillor Fergus Hood detailed the proposed savings put forward by the SNP which included reductions in business mileage and a review of publicity, as well as targeting recurring underspends across services, setting up a programme of vacancy management and reviewing staff absences, reducing the cost of capital financing and reducing expenditure on consultants.
Councillor Paul Johnston put forward suggestions for an alternative budget from the Democratic Independent Group which included transferring £3m of costs for road maintenance from the revenue budget into capital, a general reduction of all salaries, reductions in money set aside for improvements to unadopted roads and reduced administration through business mileage.
He also put forward a proposal that the council should not proceed with capital expenditure on the Aberdeen Western Peripheral Route.
Councillor Kitts-Hayes explained that the council was part of a national pay negotiating deal and that they would agree salaries which were determined as part of that deal.
A number of councillors highlighted their continued commitment for the AWPR, reflecting its vital role in the future economic prosperity of Aberdeenshire.
Councillor Peter Argyle explained: "We have been waiting for this for 40 years and it is the single most important project in the North East at the moment.
Councillor Stroud welcomed the announcement of 50 new teaching posts. He said: "This is good news for parents, for schools, for pupils and for the economy. At a time when jobs are not so easy to come by, we are delivering additional teachers to ensure that our young people get the additional class contact time they need and the best start in life."
The 2010/11 Grant Settlement was announced on 26 November 2009 and resulted in a cut to Aberdeenshire Council of £8.4 million: £5.8 million revenue and £2.6 million capital funding. The total revenue funding for Aberdeenshire Council in 2010/11 is £435m.
Councillors agreed to support the Liberal Democrat/Conservative budget, voting 39 votes for, 22 votes against with five abstentions.
