Swinney urged to vet legality of crisis council's budget

THE opposition turned the screw on the leaders of the ruling administration of crisis-hit Aberdeen City Council yesterday by accusing them of setting an illegal budget.

Labour councillors have written to John Swinney, the finance secretary, asking him to launch an urgent investigation into the legality of the budget.

The letter also accuses the administration of attempting to conceal the true extent of the financial plight from the public.

It was revealed last week, in a leaked confidential report, that the council must make budget cuts of £49.7 million this year – nearly double the previous estimate.

In his letter to Mr Swinney – headed "Political shenanigans" – Councillor Willie Young, the Labour group secretary, says: "We are particularly alarmed that the budget cut has shot up from £27 million to £49.7 million, and we would be grateful if you could advise us when you first became aware that the budget cut was £49.7 million.

"We are also deeply concerned that the budget proposed by the administration in February may be illegal."

He claims the administration knew a further £20.2 million of budget cuts was "unachievable" and says it is clear from a recent critical report on the social work department by the Social Work Inspection Agency that it will be "impossible" to cut the additional £12.2 million in adults' and children's services, approved in October 2007.

Mr Young adds: "We asked the question of the city solicitor representative and she has been unable to confirm that the budget was legal. We, therefore, require you to investigate this as a matter of priority."

The letter goes on: "We are also deeply concerned that the administration are trying to conceal information as to the extent of the problem from the public by means of trying to put documents out as 'confidential' when there is no requirement under the Local Government (Scotland) Act 1973. As the minister responsible for local government, we would ask you to conduct an investigation into why the administration is trying to conceal information from the public contrary to the act."

Mr Young said last night: "They (the administration] have to balance the books – there are no ifs and buts about that. If the budget wasn't legal, it places their credibility on the line. It places them in a very serious situation."

The veteran Labour councillor Yvonne Allan said: "My concern is that, if they knew about the need for the extra savings which has made the total up to £49.7 million, were they, in fact, moving a deficit budget – an illegal budget – because they knew they couldn't reach the savings?"

She said she had raised her concerns with the council's legal adviser and was awaiting a reply.

"We voted against it, and I need to know if that is enough to cover our back," she said.

A spokesman for Aberdeen City Council said: "A balanced budget was set, which we are legally required to do. The budget is then monitored on a regular basis and the savings reviewed in terms of their risk and deliverability. That is what we are carrying out through the External Support Group and the Budget Monitoring Board."

A Scottish Government spokesman said: "Mr Swinney has made it abundantly clear that he believes that everyone should now concentrate on delivering the 'Improvement Plan'. He believes that the first priority of all involved should now be delivering better services for the people of Aberdeen."

However, a source close to the finance secretary was more outspoken. He declared: "It is breathtaking hypocrisy of the Labour group on Aberdeen City Council to be trying to make political gain from this issue.

"Labour were part of the administration which began digging the financial hole the council now finds itself in."

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