Dundee’s councillors have voted to cut £23 million in spending from the council’s capital plan after a 30% spike in construction costs.
The move means the cash saved will be used for critical building projects such as a new school to replace Craigie High and Braeview Academy.
The cost of the building, which is to be named the East End Community Campus, has risen from £60 million to £85 million. Half of the rise is expected to be paid by the Scottish Government.
£382 million in spending refocused
The decision at Monday’s policy and resources committee affects the £382 million 2023-2028 capital plan budget previously agreed in January.
The total amount spent will remain the same but a number of projects are being cut so the money can be used to pay the inflated cost of others.
A Liberal Democrat group amendment opposing spending reductions in areas such as transport and infrastructure and social care was defeated by 15 votes to 13 at the online session.
It was supported by cross-party opposition councillors against a motion, submitted by SNP councillor for the North East, Willie Sawers.
This recommended a rejection of “damaging austerity,” pointing to last week’s UK Government budget, September’s “Truss/Kwarteng budget”, and Brexit.
Opposition councillors questioned the timescale in which to take such a large and detailed revision of spending.
Papers were made available ten days before the meeting with a briefing given to members by council officers on November 16.
SNP council leader and convener of the committee, John Alexander said he hopes there will be a “more positive position” for “construction inflation” in six months.
‘Construction inflation’
Mr Alexander added: “We’re not spending less money. We’re spending the exact same envelope of funding. The problem for us, is that the envelope does not go as far as it did ten months ago, because of construction inflation.”
Lib Dem Councillor Fraser Macpherson said: “No one’s suggested that the administration’s in some way responsible for construction inflation. The question is: how do you deal with the reduced amount, as you put it, in the envelope of £382 million?”
Mr Macpherson submitted the amendment, seconded by fellow Lib Dem councillor for Broughty Ferry, Craig Duncan.
‘Money moving between projects’
Robert Emmott, the council’s executive director of corporate services said: “The money is still being spent and it is moving between projects…
“We’re ensuring that (those) in the pipeline can be delivered and that will have a positive benefit in terms of the delivery of services and the continued delivery of services….it’s about the choices we’re making.”
‘Joining things up?’
Kevin Keenan, Labour councillor for Strathmartine said: “I really question how the administration have come to these (budget reductions) given that we’re cutting £4.1 million worth of flood defences from the airport and we’re putting a huge amount of public money into the airport.
“It looks to me that we’re not prepared to look after an asset that we know there’s potentially going to be a problem with.”
Additionally, he questioned why sustainable and low carbon project investment be cut during a “climate emergency”.
“I’ve really got to question: when do we start joining things up?,” he said.
“Is there needing to be a bigger conversation than, ‘here are your papers, we’ve decided as a group’
“I think the administration’s just lost the plot.”
‘Response 20 mins before meeting’
Conservative councillor for Broughty Ferry, Derek Scott said: “I made contact with officers, I had meetings with some, I emailed others. But I got my last response just 20 minutes before the start of this meeting.
“So, I agree with what Baillies Macpherson and Keenan have said about the opportunity to properly consider these (budget reductions) and the impact that they’re likely to have.
Last week, Mr Macpherson described the speed of information distribution and time for scrutiny as ‘the land of lastminute dot com.’
Mr Alexander said it was a “fast moving situation” and “we’ve done the best that we can in the circumstances.”
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