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Budget

Revenue and Capital Budgets for 2011 – 15

This brief guide to Aberdeenshire’s Revenue and Capital Budgets for 2011 – 15 is intended to be used as a handy at-a-glance reference guide to the main financial and statistical features of the Council’s activities.

Despite the announcement of Government Grant figures for only 2011/12, the Council has produced an indicative budget for the following three period 2012-15.

This is based on the UK Government’s Comprehensive Spending Review period, and represents our best estimate, at this stage, of the likely grant position for Aberdeenshire Council over this period.
Medium and longer-term financial planning is essential, particularly in the current climate of extreme spending restraint in the public sector, if the Council is to be review spending priorities and realign service provision.

At this stage however the Revenue Budget is only balanced for 2011/12 and further work is required to review budget assumptions and deliver further savings to achieve a balanced position over the following three-year period.

Preparation of the budget for 2011/12 started immediately following the Council Budget meeting in February 2010. Over the following 11 months councillors from all political parties reviewed the Council’s strategic priorities and considered budgets aligned to each priority.

This policy-led approach led to the Council taking key decisions in November 2010 in order to allow officers the early opportunity to take action to deliver the scale of savings required.

The Council agreed savings totalling £52m over the period 2011-13, including a review of all original budget assumptions, levels of fees and charges, scope for efficiency savings, and finally service reductions.

The Budget implications have been explained through a series of press briefings and community briefings over the period November to March.

Aberdeenshire Council continues to lag far behind the rest of Scotland in terms of government grant per head of population. Our grant for 2011/12 is 12.6% below the Scottish average, and the Council will continue to argue for a review of the grant distribution methodology and a fairer share for the residents and businesses of Aberdeenshire.

In common with all other Scottish councils, Aberdeenshire agreed to a freeze in Council Tax for 2011/12 and delivery of key policy outcomes, in return for a reduction in grant of “only” 2%. Failure to agree these conditions would have led to a much larger cut of around 6.4%.

More detailed information on the council and its finances may be obtained from the Head of Finance for Aberdeenshire Council, Derek Yule, by email: derek.yule@aberdeenshire.gov.uk, call: 08456 08 12 07, or write to: Woodhill House, Westburn Road, Aberdeen, AB16 5GB.