THE ornate granite facades of homes funded by oil millions still sit impervious, upon the tree-lined streets of the city famous for stone and fuel.
But beyond them, in the housing schemes and the pubs of Aberdeen, the slash and burn of cuts is igniting fury among those who rely on lifeline services.
And although, as always, it is the less well-off who are affected by shrinking budgets, the a
xe has also hacked into the more affluent households, chopping at leisure facilities and schools.
Yesterday, as the Accounts Commission began its hearing into Aberdeen City Council's finances, politicians and experts told The Scotsman of the consequences of years of problems. And they warned that other authorities are equally open to failure.
The true extent of the crisis – or perhaps what may prove to be only the tip of the iceberg – came to light earlier this year when £27 million of cuts were announced. The current hearing looks at a report from the Controller of Audit to the commission on a period before that, which found a "gap between aspiration and reality" and a leadership which had difficulties engaging with staff.
It also noted the council's financial position was "precarious" – despite the city's gross average weekly earnings being £481, compared to a Scottish average of £432. Unemployment is at 1.5 per cent as opposed to a national rate of 3.2 per cent. It also has one of the highest council tax rates in the country.
However, there has been a sharp increase in the number of deprived areas since 2004 and Aberdeen is the second most crime-prone area in Scotland.
Professor Richard Kerley, of Queen Margaret University, said: "It is quite a curious mixture, Aberdeen. It's within an area of high prosperity but in Aberdeen itself there are pockets of considerable deprivation and social distress every bit as bad as anything in another big city. Because of their relative levels of prosperity, they don't get as much income from the government."
North-east politicians have long gone to central government seeking extra cash, and armed with the argument that they do not get enough funding. Yet Labour MP Frank Doran – who admitted he fought the same fight when his party was in power in the Granite City – said he accepted that it was a non-starter because the city gets its entitlement.
The funding problems which have beset the council are more complex and, as the controller's report states, down to factors including failure to implement the authority's ambitious vision.
PROF Kerley said: "Aberdeen has been, in my view, quite slow to make changes in the way in which does things. It has promised for a number of years to create efficiencies and reduce expenditure and do things more effectively, and has never quite achieved it. Now, it has caught up with them."
Prof Kerley said the case indicated a number of errors which could happen at any council. He said: "Officials put forward the proposals and councillors are the ones who make the decisions – often decisions which just don't achieve the overall effect that might have been intended.
"Just as you cannot blame any of the particular parties, I don't think you can allocate responsibility between councillors and officials. It could happen, technically, in any other authority."
The current administration is Lib Dem-SNP and it was previously Lib Dem-Conservative.
A source said the problems were a product of the volume of changes the council was facing simultaneously – implementing new pay structures and back payments while trying to make "probably the most radical structural change of any council".
The authority dispensed with traditional line management, meaning, for example, teachers no longer report to directors of education, but area directors.
Mr Doran agreed this had been a problem and when he visited schools, staff reported having to deal with a contact with no expertise in education. But he said the main issue had been annual overruns in budgets compounded by a political decision by the previous administration not to make pre-election cuts.
SNP MSP Brian Adam said the problems were down to a "lack of proper financial controls over the last five years" and suggested the previous administration lacked the political direction to bring the problems under control.
Colin Cameron, director of the Aberdeen Excise Licensing Association, said the city had been badly run for years and had an unenviable history of "gross mismanagement". He also said that the councillors – who included a student – suffered from inexperience and poor quality.
Whatever the causes, the city is paying a high price.
The full article contains 772 words and appears in The Scotsman newspaper.
