The Press and Journal (Inverness, Highlands, and Islands)
Services could face cuts after ‘shock’ budget
Council to be left short by £10 million, forcing authority to ‘re-base and remove all inefficiency’
HIGHLAND Council faces a shock budget settlement amounting to £10 million less than it anticipated – sparking fears of major cuts to services.
Council bosses have warned of a “challenging scenario” requiring “re-basing all budgets, focusing on outcomes and removing all inefficiency”.
However, they have pledged there will be no voluntary or compulsory redundancies.
The council needs £604 million this year to deliver the current level of services, but will be more than £30 million short.
The gap comes from a 2.4% reduction in grant funding, where the council only anticipated 1%. A significant part of the settlement is ring-fenced for delivery of services to young children, health and social care – with additional pressures coming from pubic sector pay awards and teacher pensions.
SNP opposition leader Maxine Smith accused the council of “coasting and not seriously addressing its budget issues”, adding: “It is impossible to judge if the departments are achieving savings targets or overspending because of the way councils do their accounting.”
Cosla said: “Local government cannot invest in people, places and inclusive growth with a core that is reducing, and where local choice and flexibility is squeezed by national policies.”
The Scottish Government says the council could generate an extra £8.3m a year from increasing Council Tax.
Highland Council bosses have warned of a “challenging scenario” after receiving millions of pounds less in funding than expected.
The council needs £604 million to deliver the current level of services but will be more than £30m short.
The gap comes from a 2.4% reduction in grant funding, with a significant part of that ring-fenced for delivery of early years and health and social care services, plus additional pressures from public sector pay awards and teachers’ pensions.
The council had planned for shortfall of £66.7m over the next three years.
Budget leader Alister Mackinnon said: “We were already preparing for a significant reduction, but this news sets us a huge challenge and may mean we will need to bring forward savings from future years.”
Last October, council bosses including Mr Mackinnon and chief executive Donna Manson embarked on a regionwide round of public meetings to listen to and share information with communities about the budget realities being faced by the local authority.
Councillor Mackinnon said: “The work we have been doing stands us in good stead and we are much better prepared for a challenging scenario.”
Mrs Manson said: “The overwhelming theme has been that the council can be much more efficient and our aim is to do everything possible to demonstrate that we are listening and acting on what we have heard.”
Mr Mackinnon insisted there were no proposals for any voluntary or compulsory redundancies.
He said: “We have taken a new approach to the budget setting this year, looking at rebasing all budgets, focusing on outcomes and removing all inefficiency.
“We are also continuing to work on current in-year pressures with tighter financial controls and a
“We are determined to do the best we can for Highland”
freeze posts.
“We are determined to do the best we can for Highland within the resources we have and to deliver a budget which protects essential services on filling vacant and jobs which support the wider economy.”
A Cosla spokesman said: “We have significant concerns about the draft budget as announced, and the impact on individuals, communities and the Scottish economy.
“Local government cannot invest in people, places and inclusive growth with a core that is reducing, and where local choice and flexibility is squeezed by national policies and ringfencing.”
The Scottish Government said Highland Council could raise council tax to support delivery of local services.
Highland Council’s opposition leader Maxine Smith said: “The budget gap is indeed something to be concerned about.
“The gap was wrongly assuming the Scottish Government would find money from an ever smaller pot it gets given from Westminster.
“However, had the council delivered all of its promised savings this year and had it already planned ahead and taken account of known pressures such as job increases and pensions, it would not have been setting out with such a massive gap and the situation would have been much more manageable.”