ABERDEEN City Council is to continue to put people at the heart of its spending plans as it seeks to address an estimated £38 million shortfall in 2020/21.
A report for the Council’s City Growth and Resources Committee forecast running costs of £490m while funding is expected to be £452m.
Budget options are being developed by officers and will be presented to councillors ahead of the annual budget-setting meeting in March 2020.
The committee agreed that options for 2020/21 should continue to be aligned closely to the Local Outcome Improvement Plan (LOIP) developed by Community Planning Aberdeen partners. The LOIP offers a clear framework for the delivery of outcome-based, integrated services to support individuals and communities.
A combination of static grant funding coupled with rising costs and demand has increased pressure on the General Fund Revenue Budget, and this is expected to continue in the years ahead, with grant funding also expected to decline.
In 2019/20 the Council faced a shortfall of approximately £41m, which the local authority is on course to bridge through revenue generation and cost-saving measures.
Options for closing the 2020/21 budget gap are expected to focus again on boosting income, including fees and charges, and by embracing digital technology to enhance efficiency.
The Council is also expected to continue to reduce expenditure through the natural contraction of its workforce – whilst maintaining the Administration’s no compulsory redundancy policy – and by taking an innovative approach to service delivery.
The committee also received an update on the General Fund Capital Programme, realising the ambitions for a city where all people can prosper.
Aberdeen City Council is transforming the built environment through investment in infrastructure, as well as driving social and cultural change with significant support for the arts, events, education and communities.