Wednesday 13 December 2017

Council budget

At Monday’s Policy and Resources Committee I moved an amendment to an agenda item regarding the council’s financial outlook 2018/19. The situation is dire. Based on current projections £18.9 million will have to be cut from the council’s budget.
Dundee householders have been hit with a double whammy of tax increases in the current financial year due to a revision of the council tax multipliers for properties in Bands E to H  and a general increase in council tax. There is likely to be another double whammy next year with the potential for further increases in council tax and an income tax increase. All this while getting less services due to cuts that will have to be made to set a balanced budget.
I had hoped the committee would support me in urging the Scottish Government not to impose further cuts on local authority budgets. Since its own budget is not being cut next year there is no justification for it to cut the local authority budget either. The Chancellor of the Exchequer has increased the Scottish Block Grant in real terms and therefore, any cuts to council budgets are solely a political choice by the SNP Government. I felt it was important to emphasise this.
The SNP voted the amendment down. Labour and Liberal Democrat councillors no voted.
The amendment was as follows:
Note the report, but in addition also note:
In last year’s Scottish budget the SNP Scottish Government made an explicit political choice to cut local government funding despite an increase in real terms in its own funding.
The 2018/19 block grant will again see a further increase in real terms
Agree that there is no justification for any further fiscal tightening of local government budgets
Instruct the Chief Executive to write to the Cabinet Secretary for Finance to express concern about the financial outlook for Dundee City Council and to call for a fair share of Scottish Government funding.