Councillors have agreed, following Phase 2 of a public consultation, a General Fund budget model for 2025/26.
The model, agreed at a meeting of Full Council meeting on December 11, takes into consideration the increase and financial impact of the cost of increased Employer National Insurance Contributions and will see the Council’s Chief Officer – Finance update the General Fund financial model for 2025/26 based on the Local Government Financial Settlement.
The updated financial modelling will be undertaken in conjunction with NHS Grampian, for the Aberdeen City Integration Joint Board to help mitigate new financial risks and will be included in the General Fund budget report for 2025/26.
Councillor Alex McLellan, convener of the Finance and Resources Committee, said: “Aberdeen City Council has consulted the public on the impact of saving options that may be required to close the budget deficit and I would like to thank everyone who has taken the time to participate in the consultation.
“Whilst the Scottish Government’s proposed budget provides additional resource to local government, there remains a great deal of uncertainty around any additional funding from the UK Government to cover the cost of the changes to employer National Insurance Contribution.
“Our task at the Budget meeting on March 5 will be to approve a balanced General Fund Revenue and Capital Budget which takes into account the additional costs of the increase to Employer National Insurance Contributions introduced across the UK as well as our financial settlement for 2025/26.”
The month-long Phase 2 consultation exercise, which closed on November 17 provided the 1,535 respondents with the opportunity to have their say on additional proposed savings options and how changes might affect them if taken forward.
Council co-leader, Councillor Ian Yuill, said: “People’s feedback and views matter to us. The Council Budget affects everyone in Aberdeen, and it is only right that people can have their say on it.”
The report presented to Full Council also included details of the current estimated budget position for 2025/26 and the next three years - £29million and £55million respectively - the budget options and the Integrated Impact Assessments (IIA) which record the impact of proposals on groups of people with protected characteristics.
The Phase 2 Budget Consultation simulator built on Phase 1 options and presented an extended set of options to enable the closing of the budget gap, including savings options and income generation options.
The Phase 2 feedback results can be found here: Dec 2024 Council Budget Protocol Ph2 App 1.pdf.