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Council budgets: administrations battle with tough financial climate

Dundee City Council sits down to agree the budget in the City Chambers.
Dundee City Council sits down to agree the budget in the City Chambers.

Councils across Courier Country have set their budgets for the coming year.

Thursday’s meetings saw administrations and opposition parties argue over how each authority should prioritise their spending.Dundee City CouncilUnions and voluntary organisations warned that cuts in Dundee City Council’s budget will hurt needy and vulnerable people.

One campaigner told councillors that spending plans for 2013/14 were “a step too far” and would have a detrimental effect on the delivery of services.

However, at a two-and-a-half-hour budget meeting on Thursday, the SNP administration used its majority to pass cuts of almost £6.5 million.

These include a demand that voluntary organisations and other outside bodies providing a range of social care services make their own savings of 5%.

SNP finance spokesman Willie Sawers defended the move, saying: “Within the overall budget, we have increased the spending on social work services by £4.8m to help protect the most vulnerable in our community.

“We have also helped the lowest paid employees of the council by funding the introduction of the Living Wage of £7.50 per hour.”

The council is set to spend a third of a billion pounds during the year on its day-to-day costs, such as staff wages, along with more than £50m on capital projects.

It has frozen council tax, with the average Band D bill set at £1,211.

The council spends more than £22m a year buying in social care services, such as day care and supported accommodation. It is limiting its 5% budget cut to organisations with contracts totalling more than £100,000 and expects savings to be made in administration costs.

This was disputed by deputations who addressed the meeting at City Chambers, with a Dundee Association for Mental Health representative saying he feared much of their savings would have to come from staff costs.Perth & Kinross CouncilSpending by Perth and Kinross Council was mapped out for the next two years amid warnings there are severe financial challenges yet to come.

The SNP administration was joined by members of all other parties in warning the financial gloom has not yet lifted and the council budget was set to reflect the ongoing economic reality.

Council tax was frozen for the seventh year in a row under the funding terms set down by the Scottish Government.

But looming welfare reforms will see more people lose their jobs and homes, while the enduringly bleak economic situation will continue to strike at businesses, according to councillors.

Many of the measures announced yesterday, such as additional funds to the Citizens Advice Bureau, reflected what many view as a looming crisis.

Perth and Kinross Council leaders said the situation is not as depressing as in other authority areas after years of sound financial management.

Council Leader Ian Miller said multi-million-pound budget provisions will help boost employment, attract new business to the area and safeguard the future.

He said: “This budget is specifically aimed at getting people into work. This budget will make sure we are in the best possible position to respond as a soon as the upturn in the economy begins.”

He announced a new scheme, the Perth and Kinross Guarantee, a £50,000 tie-up with the area’s largest employers to help youngsters find work.

Fears of cuts to breakfast clubs, music tuition and homeless services proved unfounded but there will be price increases for school dinners and some other services.Fife CouncilThe leader of Fife Council’s Labour administration, Alex Rowley, called on councillors of all parties to work together as the council took its first step towards plugging a budget gap of £66 million over the next three years.

Mr Rowley confirmed that there would be job losses as the council agreed a budget that “did the best for the people of Fife with the hand we have been dealt”.

However, he offered assurances that every effort will be made to manage the impact on employees consensually although compulsory redundancies would not be ruled out.

He said: “The days of ‘salami slicing’ budgets are over. As we go forward we have to continue to balance the books with even less resources at our disposal.

“Our budget decisions have to be based on our priorities jobs for our young people, care for our elderly, quality and affordable homes, thriving town centres, and a focus on giving our youngsters the best start in life. ”

The budget highlighted £12 million of investment in 2013-14. Priorities include more opportunities for youth employment and support for families.

However, with councillors also agreeing savings of £10.8 million, SNP opposition councillors claimed the administration’s promise to help Fife’s most vulnerable was “in tatters”.

SNP group leader Peter Grant said: “This budget is like something that’s been withdrawn from the burger shelves of Tesco. There’s lots of fancy packaging to make you think it’s wholesome and nutritious but once you check the DNA you find something very different.”

Capital investment of almost £900 million over the next 10 years in Fife’s roads, schools and communities was welcomed.Angus CouncilAngus has been warned to expect pain ahead as the council cuts £30 million from services in three years.

Angus Council announced £6 million would be slashed from departmental pots over the forthcoming year. The only cheer was an unexpected boost of almost £10m to capital funding that will see four deferred projects given cash to get off the ground.

Speaking during a meeting of the full council at the County Buildings in Forfar, corporate services convener Alex King paid tribute to the inclusive ethos that saw opposition councillors invited to have input into the budget for the first time.

He said difficult choices had to be made between providing essential services and losing some community provision.

“We will continue with Team Angus and we will be back stronger next year,” Mr King said. “If you think you are unhappy with this budget then you will be really unhappy with the next two or three years.”

The social work and health department will see £2.1m cut from its budget, with education losing £1.8m, neighbourhood services £788,000, infrastructure £391,000, corporate services £342,000 and the chief executive’s department £121,000.

Brechin Flood Prevention Scheme will be one of the projects to benefit from the capital increase, alongside a programme to roll out high-speed broadband, a cash boost for a Carnoustie business park and match funding for the regeneration of south Montrose.

Council leader Iain Gaul praised the efforts of all councillors involved in balancing the books.

For extensive coverage of the budget in your area, see your local edition of Friday’s Courier or try our new digital edition.