Budget savings approved by councillors

Budget savings totalling some £2.6million have been approved by Aberdeen City Council.

The Full Council meeting accepted the recommendations on service options contained in the 'Priority Based Budgeting Final Draft Report, November 2011', which were agreed at a meeting of the Finance and Resources Committee earlier this month.

The Administration broke down options into three categories, options for accepting, options for rejection and others that required further information.

Its recommended £2.6million of savings were approved at the meeting of the Full Council with further savings to be identified before a special Council meeting on 9 February 2012 which will determine the council's budget for 2012/13.

The Council agreed it would identify further savings after considering the implications of the budget settlement offered to Aberdeen City Council by the Scottish Government on 8 December.

A Capital Grant figure for 2012-13 of £15.7million has been confirmed, which resulted in additional revenue funding of £5.3million compared to estimates of £3.9million.

City Council leader Councillor Callum McCaig said: “Full credit must go to officers for their predictions and estimates on the Capital Grant and increased funding settlement.

“We are in a position where a balanced budget for next year is well within our grasp and we have made great strides with the savings recommendations approved here.

“Now we would like to take the opportunity to seek greater clarity on some recommendations, proposals and the full impact of the funding settlement to enable us to make the right decisions for residents in the city.

“We must always ensure we deliver on the priorities of this Council so we can continue to deliver the services we need to deliver.”

The budget savings identified in the 'Priority Based Budgeting Final Draft Report, November 2011' built on the work carried out in the Five Year Business Plan last year by City Council officials, which sought to define services, establish costs, and draw up new budget options. The options are laid out in three categories:

• Efficiency options, which do not change the nature of a service but focus on efficiency and effectiveness, though some may require changes to legislation;

• Transformation options, which change the nature of the service delivery;

• Stop/Reduce options, which would cut the level of service or result in a service no longer being delivered.

The £71.5million savings options approved by Council in February are detailed in this year's report and have already been built into the budget for the next five years.

The Five Year Business Plan approach, which has been recognised by Audit Scotland as an exemplar, is a fundamentally new way of planning future spending and investment in the city and is based on Aberdeen City Council's six key priorities:

• provide for the needs of the most vulnerable people;

• help to ensure that all schoolchildren reach their potential;

• manage waste better and increase recycling;

• encourage new affordable housing;

• ensure a sustainable economic future for the city;

• ensure efficient and effective delivery of services by the Council and with its partners.

Full Council also agreed that alternative budgets from elected members

should be provided to officers by 8 February 2012 ahead of the budget meeting on 9 February 2012.

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