Aberdeen City Council issues services cut warning over funding

Aberdeen City Council's leaders have warned that services and jobs could be at risk due to its funding from the Scottish government.

The local authority's co-leader Douglas Lumsden said general revenue funding for next year was the lowest of any council outside Orkney and Shetland.

He said residents would be worried about how any savings would be made.

The Scottish government said that with income from business rates the city would get an increase on last year.

Mr Lumsden, leader of the Conservative group, told BBC Scotland: "There is a risk we are going to have to look at services, there is a risk we have to look at jobs.

"We have got a no compulsory redundancy policy, and that will continue.

"But there is going to be some real difficult decisions ahead.

"Once again it's the north east in terms of our business rates that our local businesses are having to pay that's gone up considerably and our grant fund is being reduced at the same time, so it's not good news for the city."

'Fair settlements'

Public Finance Minister Kate Forbes said: "It is misleading to quote the general revenue grant funding alone in this way as the Scottish government guarantees each local authority the combined general revenue grant plus non domestic rate income.

"The true comparison shows that Aberdeen City Council's funding has increased over the last three years.

"We continue to ensure that our partners in local government receive a fair funding settlement despite further cuts to the Scottish budget from the UK government.

"Aberdeen City Council will receive over £372m to fund local services in 2019-20. Using their council tax powers could also generate an additional £3.7m to support the delivery of essential local services, meaning an extra £15.9m or 4.4% next year."