‘Tough times’ budget hikes up council tax and fees – yet again

ARGYLL and Bute Council is facing a £5 million to £27 million funding gap over the next three years.

Suggestions for the next round of savings include raising council tax, fees and charges by another three per cent, and reducing funding for health and social care by £725,000.

Council officers published their 500-page budget plan last week, before it faces the Budget, Policy and Resources Committee for any recommendations today, Thursday February 15, and then a vote by the full council next Thursday, February 22.

Council leader Aileen Morton said: ‘These are tough times for local government. Cuts to council funding continue. Difficult choices must continue.

‘The council is pretty much in a break-even position for 2018/19. We need to reshape the council for the future to ensure we can continue to provide valued local services in the longer term.

‘The harsh fact is our funding has still reduced by 1.5 per cent for 2018/19. It is expected to continue falling in the years to come so the council needs to consider the longer term. In the starkest terms, we needed to make savings of £5 million this year and will need to save a further £22 million over the next two years.

‘There is a near-£3 million gap in our capital plan, which outlines investment in our vital infrastructure such as roads and IT. This wipes out any surplus in our revenue budget – the money we spend on delivering day to day services.

‘Breaking even does require raising council tax by three per cent. That’s the basis on which the Scottish Government predicated its local government settlement. Like most councils, I expect we will take forward that proposal. However, the administration is already clear that it cannot support one proposal in the papers to cut £725,000 from health and social care services.’

Meanwhile, on Tuesday the body overseeing those services, the Argyll and Bute Integration Joint Board (IJB), announced it needs to ‘identify and deliver’ even more savings to address its ‘estimated budget shortfall of £10.1 million for 2018-19’.

Christina West, chief officer for the Argyll and Bute Health and Social Care Partnership, said its financial report ‘highlights the scale of the financial challenge we are facing as we attempt to meet increasing demands for health and social care services, rising costs due to inflation and the estimated funding from our partner bodies, NHS Highland and Argyll and Bute Council.

‘The financial assumptions remain to be finalised and the IJB has not yet received confirmation from the council and health board over the level of funding they will allocate to the IJB.

‘The final position and funding offers from our partners will be reported to the IJB at its meeting on March 28 when the board will be presented with the implications for local services in approving the budget for 201819. The IJB may be in a position of having to make difficult decisions.’

Councillor Morton thanked the hundreds of people who responded to the council’s budget consultation, saying: ‘Almost 800 people took part, giving around 2,500 comments on ways we could make savings and raise income.’

The budget reports, including the full consultation findings, can be found on the council’s website.