Argyll and Bute chiefs warn council is facing an £8.3m funding gap

Council chiefs in Argyll and Bute have warned they may have to look at plans for next year’s budget earlier than usual – with a funding gap of £8.3 million on the cards.

Argyll and Bute Council’s executive director also said the prediction already factors in a 5% council tax increase in 2025-26.

But a pledge has also been made to look at additional sources of revenue after a councillor warned there was “only so much” the authority could do to increase council tax or reduce services.

The budget for 2025-26 will be set next February.

Executive director Kirsty Flanagan said: “One of the two biggest assumptions that affect the budget outlook is the Scottish Government grant.

“We have built in a 0.5% reduction, which it is prudent to do.

“The other is the 2% pay award.

“A lot of finance colleagues are putting in 2% for next year, and we will see how the conversations go this year.”

Cowal SNP councillor Gordon Blair asked: “Are you going to set up a specialist team to look at other sources of revenue?

“Obviously there is only so much council tax can go up, and only so much we can cut back.”

Ms Flanagan said: “We are looking at all avenues of opportunity to help bridge the gap in the executive leadership team.

“We will come forward and discuss it with elected members.

“Additional revenue is something we will look at, but it is harder than you think.”

A 5% council tax increase for households across the county, including in Oban, has been factored in.