Avoiding passing on a 4% rent increase to tenants will mean that they will save on average £170 per year for 2021/22 and £350 for the financial year 2022/23. On top of this tenants in the council’s heat with rent scheme will save a further £20 a year through this rent freeze.  

This will mean tenants can plan their finances knowing they will have no heat with rent increase, no rent increase and no council tax rise.  

Elected members also agreed that over the next five years the council will commit significant investment in its homes.  

The council has agreed to spend:  

• Over £10 million on large scale repairs;  
• Almost £28m on replacing windows;  
• Almost £11m on roof replacement and repairs;  
• Almost £12m of improvements to our multi storey buildings;  
• Almost £28m on replacing heating systems;  
• Almost £15m in its bathroom and kitchen programme; 
• Over £20m on other energy efficient measures; and  
• Over £25m of investment in safety and security measures.  

This programme will see over £180m of investment in the council’s housing stock across the city over the next five years that will form part of an investment of more than £500m, including new council housing.

The council launched an ambitious new build programme in 2018 to see the construction of 2,000 new houses in the city. Elected members heard that two further contracts have been signed which later this year will see 1,280 units under construction.  

Despite the challenges of Covid this programme continues at pace with over 120 buy back properties already secured and an anticipated 180 further units to be acquired as they become available.  

Later this year will see the next stage of delivering the 2,000 units as the council-owned land to the market to deliver a further 400 units.  

Further developer-led schemes are expected to come before the council this year which will mean that the council will have exceeded its commitment to enhance its housing stock with more than 2,000 new modern homes. The Aberdeen Gold Standard of housing will offer future tenants high-quality homes and also offers an excellent model to social housing providers up and down the country.

Elected members also heard that the council has secured £35m of external funding towards the cost of these new houses. The council has also set aside a sum of £15m to ensure these new properties will be future proofed against anticipated building standards legislation likely to come into force over the next year or so.  

These latest homes will be built to the highest energy efficient standards and will help towards the council’s aim to be net zero in the future.  

The council’s housing plans are aligned with the Local Outcome Improvement Plan, which is shaped in consultation with communities. The council continues to engage with tenants on its plans and works directly with them in looking after properties.  

A year ago, the council launched resident-led inspections in the city’s multi storey buildings. In addition to regular inspections, council tenants, private tenants and homeowners now assist the Council and the emergency services in identifying what can be done to keep buildings safe, secure and in the best condition.  

Yesterday’s budget also allocates £250,000 from the Housing Capital Programme to undertake a full option appraisal on the city centre multis to consider future development and investment opportunities.  

Aberdeen City Council’s housing spokesperson Councillor Sandra Macdonald, said: “The last year has been hard for us all due to the pandemic, which is why I am delighted that the Council has agreed to freeze all rents and fees and charges from May 3, not just for this coming financial year but for the following financial year too.

“As we reflect on the many challenges and difficulties people have experienced over the last year, this budget aims to provide a little bit of respite for our tenants.  

“This together with the significant investment in our current housing estate and future developments means that we as a council set a standard for others to aspire too.

“Everything we do as a council is about the renewal of our city: economic, environmental, and social. We have to use every means at our disposal to promote that renewal and to promote the good health and wellbeing of our citizens.” 

In its overall 2021/22 budget, Aberdeen City Council agreed an investment of £150m to regenerate the city centre and link it to the beach area. 

The council agreed that there would be no rise in Council Tax and no rise in fees or charges.  

The council also reiterated its commitment to its Net Zero Vision and the Climate Change Plan with a hydrogen investment package worth £38.4m.  

This includes £19.4m for a new hydrogen hub in the city that will offer the real potential to unlock private sector investment and lay the building blocks for large scale production, storage and the distribution of green hydrogen for export. It will allow the council to heat homes as well as power transport within the city.  

While £19m will be used over the next five years to further add to the council’s range of electric, hybrid and hydrogen vehicles. 

The council agreed to spend £187m on its education service in the coming financial year with part of this funding ensuring that every eligible child receives 1,140 hours of early learning provision.

The council’s operations that look after roads, parks, and keeping the city clean and safe will have funding totalling almost £55m while its early intervention and community power spend will total over £16m.

The council said it is determined to ensure that no one in this city goes without food or shelter and in addition to the funding it allocates for its award-winning Food and Fun programme and annual allocations made by the Fairer Aberdeen Board, it agreed to allocate a further £100,000 to help deliver more sustainable solutions to food insecurity and poverty. This is in addition to the £75,000 agreed at council last week to develop proposals for a food cooperative.

Within communities and partnerships, the council will invest nearly £6m and spend on libraries will total almost £4m.

The council will also spend almost £100m on adult social care services.

Around £1.5m set aside for the ongoing exceptional operating environment created by the Covid-19 pandemic and the known and unknown risks that may arise.  

The council agreed a general revenue budget of £480m and a capital programme plan of £214m for 2021/22. 

Council co-leader Councillor Douglas Lumsden said: “Today’s budget comes at a key time in the city’s history – a key time in the world’s history – as cities around the globe take the first tentative steps out of the devastating global pandemic that has engulfed us over the last 12 months. 

“As well as dealing with the pressures of Covid, our council has kept a firm focus on securing long-term prosperity, which is why we are able to commit to an unpresented investment of £150m in the city centre linking it the beach area.  

“We have ensured over recent years that we have maintained a strong financial position, as recognised by our external auditors and our credit rating assessment, and delivered a balanced budget for the last three years which when we look at the next five years it can be clearly seen that we have headroom to provide the city and its businesses with an assurance that the council will invest in the areas that will make a real impact to them as they seek to come out of this lockdown. 

“This coupled with the major investment already seen including Aberdeen Art Gallery, Union Terrace Gardens and Provost Skene’s House will continue to see the hugely significant development of Aberdeen as a tourist destination and desirable location to live and work.  

“Covid has shown us that our most valuable currency is our humanity, and we go forward with a sense of ambition and excitement but also with a better appreciation of what our priorities must be. These priorities have been captured in this budget which is why it is such an exciting time as we look forward as the city continues to build on its reputation as a city that is vibrant, creative and ambitious.” 

Council co-leader Councillor Jennifer Laing said: “This budget is about the people and place and it was imperative that this budget accelerates our recovery from Covid particularly for people and communities as well as at a city-wide level. A city, after all, is nothing without its people. 

“Our socio-economic rescue plan was an immediate response to the pandemic, but actions taken to support businesses, people and the place will become embedded into Community Planning Aberdeen and the Local Outcome Improvement Plan refresh.  

“In Aberdeen we are enormously proud of the partnership working we have forged with community organisations. This budget will continue to support the brilliant work they do to help individuals and families in our priority locality areas and city-wide particularly in tackling food poverty. 

“Today’s budget shows the council remains committed to supporting the growth of the city’s economy and we believe that this budget will help to aid the city’s socio-economic recovery from Covid-19 through investment in new primary schools, much need investment in our roads network, tackles climate change through the Energy from Waste plant, invests in our ‘green’ vehicles and alternative energy through hydrogen. This will attract further inward investment from the private sector helping to create thousands of new jobs.”