Budget fears
South Lanarkshire Council could be facing massive cuts of over £27 million next year, with frontline services likely to be affected.
Officers have predicted the grim scenario for 2018/19 ahead of an executive committee today, Wednesday.
South Lanarkshire Council could be facing massive cuts of over £27 million next year, with frontline services likely to be affected.
Officers have predicted the grim scenario for 2018/19 in a paper set to go in front of members of the executive committee today, Wednesday.
The figure has been calculated using assumptions based on this year’s government grant and council tax collection.
This year’s budget totalled over £673m with 81 per cent coming from the government grant.
Councillors had to agree a cuts package of £19m to balance the books, leading to hundreds of jobs being scrapped.
Officers have come up with three scenarios based on economic updates from a leading economist.
If the authority faces cuts similar to this year, that could lead to a grant reduction of £21m.
Cuts similar in nature but including a late financial boost would mean savings of £10m while an unlikely best-case scenario would mean cuts of just £1m.
The use of reserves means a further £5.2m will need to be found.
Other commitments, including pay increases and commitment to the living wage, could bring the total cuts package to over £42m but adjustments and increases in homes paying council tax bring that figure down to £27m.
The council must approve a budget by February next year. With the SNP running a minority administration, agreement will have to be reached with either Labour or the Tories to pass their spending plans.
The report to councillors urges caution on Budget fears At South Lanarkshire the figures, which are based on previous grant settlements.
It also says:“The council’s need to spend will increase into 2018/19 mainly from pay awards and pension changes, price inflation and funding for the council’s priorities.
“Inflation is expected to rise from current levels due to economic uncertainty and the potential impact of Brexit, and therefore we will require to consider the impacts of this in this and future strategies.
“Over the longer term, the level of grant we will receive is unknown. Alongside this pressure on expenditure from pay awards, inflation and continued funding for council priorities means that savings will continue to be required, unless we return to sufficient increases in grant.”