Issued: 20 December 2001
Financial Settlement Realities Leave Bitter Taste For Angus
Angus Council’s finance convener has accused the Scottish Executive of misleading the public with headline grabbing grant settlement figures.
Councillor Alex King condemned the Executive for once again dressing up old money as new and for concealing the realities of the 2002/2003 finance settlement from the public.
“The figures announced by the Executive two weeks ago only provided councils with high level totals and at that stage a great play was made publicly of the large increases in resources apparently being given to councils,” said the convener.
“It has taken the Executive a fortnight to provide councils with the information necessary to be able to work out what the settlement means for budgets and that detailed picture is far from rosy.
“Angus citizens should be in no doubt that this financial settlement is simply no where near as generous as the Executive claim.”
Councillor King also expressed his disappointment that the Scottish Executive had clawed back £56,00 from Angus to make their numbers add up.
“It appears the Executive got their figures wrong in their hurry to grab the headlines.”
“Angus Council’s grant has been increased by over £12m next year - a rise of 10% which on the face of it appears to be fairly generous. However, what the Executive didn’t announce is how much of this increase is committed to new services and costs imposed on councils by the Executive, over which we have little or no discretion.
“In Angus these take up over £10m of the supposed £12m increase.”
Councillor King said the Executive’s most underhand trick was in the announcement of funding for Nursery School provision.
“Last year councils were provided with a special grant to meet nursery costs. This time round these grant monies have been included in the main grant allocations - part of the supposed £12m increase. The Executive may have dressed it up as new money but it is no more than the recycling of the same resources.
“The public have a right to know that of the Angus increase more than 25% is simply the Executive giving us the same money in a different guise. This disgraceful manipulation of the figures leaves a bitter taste in the mouth”
Councillor King concluded by emphasising that the Council faces another tough budget setting round.
“The settlement increases are almost wholly committed to deliver burdens transferred by the Scottish Executive to local authorities, therefore other cost pressures faced by the council for the effects of inflation and the like will have to be met from existing budgets. The council will endeavour to restrict the level of cuts in services and the inevitable increase in council tax which will be required to make ends meet”