Council tax to rise 4.8%

Unanimous vote

Aberdeenshire councillors have unanimously agreed to raise council tax by the maximum possible amount in an effort to protect local services.

The decision, taken by elected members from all sides of the political spectrum at a full council meeting yesterday, will mean an additional 4.84% added to residents’ bills for the financial year 2020-21.

The Scottish Government had granted local authorities the ability to raise council taxes by 3% in addition to inflation, which was agreed at 1.84%.

Addressing members, council leader Jim Gifford said the authority had been left with little option.

He said: “Given the overall position that this council currently faces, and especially in light of the Scottish budget last week that appears to have given us next to no additional funding when compared to our level of commitments, we have some difficult choices to make.

“The magnitude of funding reductions that we must consider, in order to produce a balanced budget, means we have little choice but to look to use that full council tax raising power.”

Under the new tax, the average Band D household in Aberdeenshire will now pay £1,300 in council tax – up from £1,240.

Mr Gifford added: “We do not take this decision lightly, but we must act responsibly and consider all options available to us.” He said the agreed step would also mitigate against “the worst of the cuts to budgets that could be avoided if we just got a more generous settlement from Edinburgh”.

It is the second financial year in a row that council tax has increased in Aberdeenshire.

Councillor Richard Thomson, leader of Aberdeenshire Council’s SNP group, said his group “fully endorse the proposals”.

He added: “Westminster does not look like setting its budget until March 11, and this has completely banjaxed the normal budget process for the Scottish Government.

“It’s incumbent upon us as local representatives in Aberdeenshire to provide as much certainty as we can.”

A Scottish Government spokesman said: “Despite a real terms reduction of £840 million to Scotland’s discretionary resource budget allocation since 2010-11, we have ensured our partners in local government receive a fair funding settlement. In 2020-21, Aberdeenshire Council will receive £489.4m to fund local services. Taken together with the potential to increase council tax by 3% in real terms, Aberdeenshire Council will have an extra £33.4m to support its day-today services in 2020-21 – an additional 7.8% on 2019-20.”

During yesterday’s meeting, council housing rates in Aberdeenshire were also agreed for the year ahead.

Average weekly rents will increase by 5.5%.