Rules change could ease cash cuts to services

Proposals to save enterprises from axe

By Andrew Whitaker political reporter

Published: 24/04/2008

STRICT accountancy rules could be changed to help cash-strapped Aberdeen City Council.

The move would let the council – facing budget cuts of £27 million – move money from its capital accounts for funding building projects into its revenue accounts which are used to pay for services for vulnerable people.

The strategy was one of several proposed by North-east politicians from all parties at a meeting with Finance Secretary John Swinney in the Scottish Parliament.

Other suggested measures include transferring services and enterprises for vulnerable people to charities and setting up a trust to run Linx Ice Arena, near the city’s beach.

Mr Swinney agreed to consider the proposals.

He also agreed to examine steps to help Doonies Farm, workshops for the blind and the possibility of allowing the £10million payments for equal pay for staff to be funded from capital funds.

Scottish Lib Dem leader Nicol Stephen, MSP for Aberdeen South, argued accountancy rules “could be changed” because the Westminster Government has given councils in England and Wales the freedom to do so to meet spending needs.

He said: “Action is needed urgently and we have to push very hard to ensure that money can be moved from capital accounts into revenue accounts. John Swinney indicated he has approached the Treasury about that and hopes for an early decision.”

Mr Swinney, who has agreed to review the funding formula which determines how much money councils are allocated, made it clear that while the SNP Government was prepared to help council bosses find solutions, it would not be handing over additional resources.

The meeting, which involved nine constituency and regional list MSPs, council leader Kate Dean and her deputy Kevin Stewart, was described as “constructive”.

Mr Stephen said he was pleased the meeting had taken place before an Accounts Commission inquiry is due to start next month.

He added that the time had come for the “blame game” to stop and for all political parties to work together to try to resolve the crisis.

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