Outlook is bleak as council bids to balance its budget
Councillors are set to bring forward proposals to set a balanced budget today amid“a hugely challenging and complex” financial environment.
The medium-term outlook remains “bleak” for Renfrewshire Council, according to a key report, as elected members prepare to crunch the numbers and pore over plans for 2024/25.
SNP finance convener Councillor John Shaw is set to make a statement on behalf of the administration on Thursday, setting out its position, before opposition parties are given the opportunity to present counterproposals.
An adjournment could then be ordered by Provost Lorraine Cameron, which would allow councillors to study spending options, before a debate and subsequent vote is held in the chambers at Renfrewshire House.
The administration’s budget – which is understood to include further investment in roads – is expected to pass with the help of independent councillor Andy Doig, due to a confidence and supply agreement.
Despite this, the Labour group is set to present its own budget.
A report authored by Alastair MacArthur, the council’s director of finance and resources, has been published ahead of the crunch meeting.
It said: “Members will be aware that the council is experiencing a hugely challenging and complex set of financial circumstances.
“It is recognised that moving into 2024/25 and beyond, the financial environment that local government in Scotland is facing will remain heavily constrained, with substantial risks even in the short term in relation to cost growth and income constraints. Longer lasting legacy impacts on service costs, service demand and income streams are anticipated.
“Members will be required to take these circumstances into account when setting the 2024/25 budget, recognising that the council’s immediate and mediumterm challenges remain significant.
“Additionally, as reported to members throughout the year and subject to decisions taken by council, there will be a need for the budget position in 2024/25 – as was the case in 2023/24 – to rely heavily on the use of ringfenced reserves to address the forecast budget deficit.
“This solution must be viewed as temporary, and the council must act in the near term to contain spend within available resource on a recurring basis.”
In March of last year, spending of around £499 million for 2023/24 was approved as SNP plans passed following a vote.
It’s estimated around £547m is needed to maintain service levels, fulfil new responsibilities and address known pressures in the coming year.
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The council is experiencing a challenging and complex set of financial circumstances Finance director