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Page last updated at 09:29 GMT, Thursday, 18 December 2008

Councillors pass £24m budget cuts

Money
The council is trying to save millions of pounds next year

Aberdeen councillors have approved plans to cut £24.5m off the authority's budget next year.

The decision will see social services lose £8.6m, a £1.2m cut in the housing budget and £5.9m less for education.

In total about 400 jobs will go - including more than 200 classroom assistant posts.

The Scottish Government confirmed the council is to be allowed to borrow £11.7m to fund redundancy pay for the staff it is looking to cut.

The latest cuts come after £35m in savings already agreed by the Liberal Democrat-SNP led administration earlier this year.

The package of cuts was passed by 20 votes to five.

As we have consistently made clear, it is up to all involved now to come together and ensure the people of Aberdeen get the high quality services they deserve
John Swinney
Finance secretary

Deputy leader Kevin Stewart welcomed the move by the Scottish Government to allow it to borrow, but admitted the authority may have to ask for more in the future.

Describing the budget as "tough", he said: "It is something we need to do to ensure this city is back on a firm financial footing.

"There is a possibility we may have to go back, I hope that is not the case, but never say never."

No schools, libraries, museums or pools are to close as a result of the budget package.

The opposition Labour group did not put forward an alternative budget, but instead called for an all-party delegation to meet with Finance Secretary John Swinney to ask for an emergency 5% increase in funding for the city.

Cllr Len Ironside, the Labour group leader, also backed calls for a petition to demand a fairer share of cash in the future.

He said: "I think it's time we stood up to them and said we need this money."

'Positive news'

He added: "We recognise there still has to be cuts."

Mr Swinney said: "It is for the council to manage its ongoing budget process and ensure they balance their books.

"Obviously, due to problems that have built up over a long period of time, the council faces a number of challenges.

"As we have consistently made clear, it is up to all involved now to come together and ensure the people of Aberdeen get the high quality services they deserve."

He said the Scottish Government had taken the "exceptional steps" of working with HM Treasury to allow the council to borrow a limited amount to meet certain revenue costs.

Mr Swinney said: "As a result, we have informed the council today that ministers intend to give initial consent to the council to borrow £11.7m.

"This means the council will be able to spread these costs over a number of years. This is obviously positive news for the city."



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SEE ALSO
Council 'is not as bad as feared'
11 Dec 08 |  North East/N Isles
Child protection review announced
04 Dec 08 |  Scotland
Aberdeen child protection slated
13 Nov 08 |  North East/N Isles
Classroom workers 'to lose jobs'
26 Nov 08 |  North East/N Isles
Troubled council names new boss
26 Aug 08 |  North East/N Isles
Petition to call for leader to go
24 Jul 08 |  North East/N Isles
Chief executive stands down early
13 May 08 |  North East/N Isles

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