Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Councillors warn ‘unfunded’ council tax freeze will worsen the bite of inflation

Post Thumbnail

Opposition councillors are warning inflation will lead to ”significant cuts” in Dundee City Council’s budget up to 2015.

Labour group leader Kevin Keenan said the Scottish Government is ”demanding the impossible” from local authorities in order to meet the SNP’s pledge to freeze council tax.

The amount the council receives in grant from the government will fall slightly in 2012-13 to £316.4 million, with allocations for the following two years expected to be £318 million and £318.2 million.

Mr Keenan and his colleagues have used Treasury statistics to work out what these sums will be worth in real terms once inflation is taken into account. They reckon next year’s grant will be worth only £308 million, dropping to £302 million the following year and to £294 million in 2014-15.

Mr Keenan said: ”These figures show how unfairly councils have been treated by the Scottish Government to pay for its five-year council tax freeze that it has never fully funded.

”The Scottish Government is demanding the impossible from councils. It orders councils to maintain vital public services while slashing their budgets with deep cuts at the same time.

”For its loyal council supporters to suggest otherwise is to misrepresent the position of councils that through no fault of their own have been forced to carry out cuts to their important services.”

The city council’s SNP administration has already said it will be seeking savings of £3.4 million in next year’s budget, taking into account its £1.4 million drop in central government grant and its need to maintain council tax levels.

Liberal Democrat group leader Fraser Macpherson said: ”The SNP continually blames Westminster for everything, but the reality is that the SNP finance cabinet secretary John Swinney has a budget that is in real terms billions higher than that available to the Scottish Government when the parliament was first established in 1999.”

Mr Swinney has welcomed confirmation that Dundee and the other 31 councils in Scotland have agreed to accept his funding offer for 2012-13, which commits them to freezing council tax for another year and maintaining police and teacher numbers.

He said a household on the average council tax band will have saved more than £500 by the end of the next financial year as a result, with poorest households gaining most.

Mr Swinney said: ”Despite the most dramatic reduction in public spending ever imposed on Scotland by the UK Government, over the next three years local government will receive a larger share of Scottish Government funds than in 2007-08.

”Like the Scottish Government, councils face a number of competing pressures on their budgets, so I am delighted the package I offered to local authorities has been accepted in principle by every council.

”This will see the council tax freeze continue for another year, putting over £500 into the pockets of hard-pressed households since 2008, while maintaining teacher numbers and the number of police officers on our streets benefiting every household in Scotland.”

Government figures show that Dundee City Council will see its grant increase by only 0.16% between now and 2014-15, one of the smallest rises of any local authority. The grant for Angus will increase by only 0.32%. Fife does better with a 1.57% increase over that period and Perth and Kinross will see its grant rise by 1.97%.

However, the impact of inflation means all these councils are facing real-terms cuts, putting pressure on jobs and services.