Aberdeen 'swicked' over business rates

12.00.00am BST (GMT +0100) Tue 29th Apr 2008

Aberdeen businesses paid £151m more than city gets back

Malcolm Bruce MP, whose Gordon constituency includes the northern part of Aberdeen City, and North East MSP Alison McInnes have backed calls for a new funding settlement for the city, pointing out that figures just revealed show that businesses in Aberdeen have paid £151 million more in rates in the past three years than the City Council has received back.

"I have visited Aye Can in Dyce whose work force have been upset and confused by uncertainty"- said Mr Bruce, the MP for Dyce in Aberdeen City

In written answers to Alison McInnes from Finance Secretary John Swinney, it has been revealed that businesses in the city paid out a massive £378,178,069 in rates over the last three years and received back only £226,834,000 - a shortfall of £151,344,069.

"Allowing for the fact that Aberdeenshire which we also represent is a net beneficiary from the redistribution it is nevertheless the case that North East businesses from the city and shire have over the last three years contributed £51.136million more than the councils have got back", the Liberal Democrats explain.

Alison McInnes said, "I welcome the fact that at last week's meeting, requested by Nicol Stephen between John Swinney, local MSPs, including myself, and council representatives, constructive proposals to mitigate the impact of some of the present round of cuts were proposed.

"However the figures provided to me by John Swinney show that the North East is not getting a fair deal on council funding and that aggravates our difficulties.

Mr Bruce said; "Representing parts of the city and the shire as I do, I am well aware of the pressures. I have visited Aye Can in Dyce whose work force have been upset and confused by uncertainty. I have met with schools' representatives and made representations to the city council about teacher cuts and schools closures and mergers.

"Population pressures in Aberdeenshire mean we need more school and community facilities but find it hard to meet expectations with a tight funding settlement and a moratorium on new capital projects imposed by the Scottish Executive.

"Through business rates and personal taxation the North East makes a substantial positive contribution to the Exchequer and the Scottish Executive. It is high time this was recognised in the funding settlements to our councils and health authorities. On the basis of these figures I would not blame North East businesses and taxpayers for believing we are being swicked."

ENDS