Aberdeen City Council Finalises 2025/26 Budget Amidst Public Scrutiny
Aberdeen City Council has taken a crucial step in shaping its financial future by agreeing on a General Fund budget model for the 2025/26 fiscal year. Following extensive public consultation, councillors have developed a strategy aimed at mitigating financial pressures while attempting to address community concerns.
The newly approved model was presented at a Full Council meeting on December 11, reflecting months of analysis, discussion, and direct feedback from Aberdeen’s residents. Central to the financial strategy is the growing challenge of increased Employer National Insurance Contributions, alongside other budgetary pressures that have affected councils across Scotland.
The agreed-upon budget strategy outlines several key initiatives, including a plan to update the General Fund financial model for 2025/26, which will now factor in the Local Government Financial Settlement. This process will be conducted in conjunction with NHS Grampian to account for financial risks associated with the Aberdeen City Integration Joint Board.
This collaborative approach aims to create a more resilient financial position for the city, with an emphasis on maintaining essential services and reducing the likelihood of severe cuts. Aberdeen City Council Co-leader, Councillor Ian Yuill, described it as "a necessary and difficult process" but noted that public input had played a critical role in shaping the decisions.
To ensure transparency and community participation, the council ran a two-phase consultation exercise. Phase 2, which concluded on November 17, gave 1,535 Aberdeen residents an opportunity to weigh in on the proposed changes and cuts.
The demographic breakdown of participants revealed a wide range of voices, with 52.8% identifying as female and 42.8% as male. The age profile of respondents was equally diverse, spanning from under-25s (8.5%) to those over 75 (4%). The ethnic composition was predominantly white (93%), and 66% of respondents were in either full-time or part-time employment.
Feedback from the consultation highlighted several key concerns from the public:
Mental and Physical Wellbeing: Many respondents emphasised that reducing funding for sports and arts would negatively impact mental health. For some residents, these activities provide essential relief from stress and social isolation.
Support for Vulnerable Groups: Community centres and equalities grants were flagged as vital for elderly citizens, disabled people, and low-income households. Many respondents argued that cuts to these services could have long-term social and economic costs.
Economic Implications: Concerns were raised about how changes to funding for business growth initiatives, Aberdeen tourism, and cultural events could reduce the city's competitiveness and attractiveness to visitors and investors.
Sustainability and Environmental Concerns: Proposed cuts to environmental projects were seen as counterproductive at a time of growing public support for climate action. Citizens argued that such reductions could hinder biodiversity efforts and increase long-term costs to public health and safety.
The data from the consultation was presented as part of the council's official report, providing councillors with a clear sense of public sentiment and highlighting the likely impacts of potential cuts on protected groups, including people with disabilities, minority ethnic groups, and low-income households.
While acknowledging the need for financial prudence, councillors stressed the importance of maintaining critical public services. Convener of the Finance and Resources Committee, Councillor Alex McLellan, underscored the significance of public input in the decision-making process, stating:
“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.”
The final budget decisions are set to be made at a council meeting on March 5, 2025. Councillors will need to take into account a potential shortfall of around £29 million for 2025/26 and £55 million over the following three years. Adjustments will be made to accommodate anticipated increases in Employer National Insurance Contributions and other unforeseen financial challenges.
A significant portion of the council’s focus will now be on reducing financial uncertainty. The Council’s Chief Officer for Finance will be responsible for updating the General Fund financial model to reflect the latest Local Government Financial Settlement, with final adjustments expected ahead of the March budget meeting.
Key areas under scrutiny include:
Service Delivery Adjustments: With the possibility of reduced budgets, essential services like public health, community support, and environmental maintenance may face cuts. However, public opposition to reductions in community centre funding and business support could influence final decisions.
Collaboration with NHS Grampian: The council will work with NHS Grampian to ensure that services provided by the Aberdeen City Integration Joint Board are sustainable and adequately funded. This is seen as a way to mitigate financial risks and avoid service interruptions.
Impact on Vulnerable Groups: As part of its impact assessment, the council will continue to track how any service changes affect groups with protected characteristics under the Equality Act, including disabled people, people of different races, and older adults.
Public feedback from the Phase 2 consultation has revealed the public’s deep concerns about the consequences of budget cuts. Many respondents noted that reductions in community services, sports, and cultural funding could lead to higher social costs down the line. Others called for more transparent decision-making and clearer definitions of terms such as "reprofiling of capital programmes" so that residents could make more informed contributions to the consultation.
The challenge for councillors in the coming months will be to balance financial sustainability with social equity. While councillors have reassured residents that they will strive to protect essential services, the reality of a multi-million-pound budget deficit will necessitate tough decisions.
The 2025/26 budget process for Aberdeen City Council reflects the financial challenges facing local authorities across Scotland. Public consultations have highlighted the delicate balance required to protect essential services while managing costs. Councillors have promised to put residents at the heart of decision-making, but the public will be watching closely to see if this promise is kept.
With the March 5 deadline fast approaching, Aberdeen residents and council members alike face difficult choices. Yet, as the consultation data suggests, there is a collective will to preserve vital services and protect vulnerable groups.
