As Aberdeenshire Council grapples with budget cuts, residents brace for potential service reductions.
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The leader of Aberdeenshire Council, Gillian Owen, has signaled a challenging period ahead as the council prepares to address significant budget cuts. With a projected overspend of £6.5 million, the local authority is under pressure to balance its finances while maintaining essential services for residents.
The looming threat of a 20% council tax increase has raised concerns among community members, who may face reduced services as a consequence of the council’s financial decisions.
Understanding the financial landscape
Aberdeenshire Council is not only grappling with its own budgetary issues but also with the broader implications of funding for health and social care services.
The local partnership is facing a staggering £26.2 million deficit, which adds to the council’s financial burden. With the council required to contribute 43% of its funding, an additional £11 million is needed to cover these costs. This situation has led to projections of an £18 million overdraft by the fiscal year 2025/26, a figure that could potentially rise further.
Previous cuts and their impact
Last year, the council faced a £35.45 million shortfall while attempting to freeze council tax rates. This resulted in a series of controversial cuts, including the elimination of school crossing patrollers and janitor positions, as well as the closure of service points. As the council prepares for another round of budget discussions, the challenges appear even more daunting. Owen remarked on the difficulty of the upcoming budget process, stating that the council has already exhausted many options for cost-saving measures.
Community feedback and future considerations
Despite the grim financial outlook, there is a glimmer of hope as Aberdeenshire is set to receive more financial aid from the Scottish Government than initially anticipated. However, Owen cautioned that these funds may come with restrictions on how they can be utilized, limiting the council’s ability to protect vital services. In a recent survey, 54% of residents indicated they could manage a 5% increase in council tax, while 25% were open to a 10% rise. This feedback will play a crucial role in shaping the council’s budget decisions, which are set to be finalized on February 20.
As the council navigates these financial challenges, Owen’s commitment to avoiding a drastic tax hike is clear. She aims to dispel misconceptions about potential tax increases while emphasizing the need for responsible financial management. The upcoming budget discussions will undoubtedly be pivotal in determining the future of services in Aberdeenshire, as the council strives to balance fiscal responsibility with community needs.
