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Council to borrow severance money Councillors pass £24m budget cuts
(about 4 hours later)
The Scottish Government is to allow Aberdeen City Council to borrow money to pay off hundreds of staff. Aberdeen councillors have approved plans to cut more than £24m off the authority's budget.
The decision will see social services lose £8.6m, a £1.2m cut in the housing budget and £5.9m less for education.
In total about 400 jobs will go - including more than 200 classroom assistant posts.
The latest cuts come on top of £35m in savings already agreed by the Liberal Democrat-SNP led administration earlier this year.
The package of cuts was passed by 20 votes to five.
Aberdeen's depute leader, Kevin Stewart, described the budget as "tough".
He added: "It is something we need to do to ensure this city is back on a firm financial footing."
No schools, libraries, museums or pools are to close as a result of the budget package.
But the Scottish Government is to allow the council to borrow money to pay off staff.
The council will be allowed to use its capital budget to pay almost £12m in staff severance costs.The council will be allowed to use its capital budget to pay almost £12m in staff severance costs.
Hundreds are taking early retirement or redundancy payments as the authority looks to balance its books. Hundreds are expected to take early retirement or redundancy payments.
The arrangement has been allowed because of the council's financial difficulties. The council wants to save just over £24m next year. The arrangement has been allowed because of the council's financial difficulties.
A package of cuts next year was set to be rubber stamped on Wednesday evening.
Social services face £8.6m of savings, and about 400 jobs could go - including more than 200 classroom assistants - if the plans are approved by full council.
However, no schools, libraries, museums or pools would close.
Sources have suggested major changes to the proposals recommended earlier are unlikely, but there could be minor alterations.
The council's deputy leader Kevin Stewart earlier said "tough choices" had to be made as part of the savings.
The meeting comes just days after the new chief executive of Aberdeen City Council insisted that its problems were not as bad as she had first feared.
Sue Bruce was speaking of her role for the first time last week.
She replaced Douglas Paterson, who announced in May he was taking early retirement.