Budget Leader highlights early action required to address overspend

The Corporate Revenue Monitoring Statement for Quarter 1 (Apr – June 18), which will go to the Council’s Corporate Resources Committee next week is  projecting a £5.1 m overspend for the year.

Budget Leader Cllr Alister Mackinnon said: “The Council’s reserves at around £8m are well below the minimum level recommended by Audit Scotland and it is vital that they are not depleted further by a year end overspend.

“Urgent action is required now to address the situation and to bring  expenditure back under control by next March. This is an early warning and we are determined to take the necessary corrective actions, in a business-like manner, recognising the seriousness of the situation. We also face the risk of another hard winter which would eat into our reserves, so early and decisive action to address the projected overspend is vital.”

He went on to say: “Staff and Trade Unions have already proved their worth in recent times to help with the overall effort to find savings and be more efficient and they will be working along side us to deliver a balanced budget in exceptionally difficult times.

“We understand that the Scottish Government will be tabling a one year settlement yet again, however, we intend to bring forward a 3 year plan to provide certainty for our staff and communities. It is clear that there are harder times ahead. It is more important than ever to find every possible means of income generation to avoid job losses and protect essential services.”

Staff have been asked to take action now to avoid non-essential expenditure and to consider deferral of non-priority activity. These controls include:-

• Escalation of recruitment controls.
• Escalation of controls on overtime and extra hours beyond those contracted.
• Review of all agency appointments
• Tighter controls on travel

Each of the Council’s Service management teams have developed proposals to reduce expenditure and to increase income which will be reported to the Corporate Resources Committee next week.