City Council leader Gordon Matheson slams 'tawdry' budget deal

Feb 11 2011

GLASGOW City Council leader Gordon Matheson has accused the Scottish government of forcing the city into agreeing a s58million budget cut.

Mr Matheson accused Mr Swinney of "holding a gun to the city's head" and forcing it to sign up to a "tawdry" deal.

On Thursday the majority of Scotland's 32 councils set out their spending plans for the year ahead, described by one as "the most challenging budget in a generation".

Details were revealed as Finance Secretary Mr Swinney confirmed a funding package worth s11.5 billion.

The deal - representing an average 2.6 per cent cut in councils' budgets - comes in the wake of a s1.3 billion cut handed down by Westminster.

But Mr Matheson said: "This year John Swinney offered Scottish local government a 2.6 per cent funding cut - but threatened to withhold an extra s50m from our city unless we agreed to a list of demands designed to win his party votes in May.

"He held his gun to Glasgow's head and showed he was quite prepared to pull the trigger.

"Even though we signed up to his tawdry deal, without drawing breath Mr Swinney broke his promise to Glasgow and cut our budget by 3.6 per cent anyway - forcing us to find millions in additional savings this year."

One of the first services to be hit as the council scrambled to make savings is the city's bin collections which will now be collected once a fortnight instead of every week.

Voluntary redundancy, early retirement and a two-year pay freeze for all staff are among the other measures the council hopes will save a total of s58.5m in 2011/12.

MSPs agreed to almost £9.5 billion of authority funding under the Local Government Finance Order 2011.

A second order to be brought before Parliament next month will pay out the remaining revenue, including money to pay for a council tax freeze.

Mr Swinney said: "In setting their own budgets, councils are of course having to make tough decisions.

"But I welcome the fact that all councils have already provisionally accepted the package on offer, which was discussed and agreed with Cosla's leadership."