Highland Council agrees a budget for Recovery, Health and Prosperity

The Highland Council has approved an ambitious Health and Prosperity Strategy for the Highlands at its budget setting meeting today, 4 March.

The strategy sets out a new approach which seeks to balance the current financial context with the drivers for economic growth and recovery from the pandemic.

At its heart is investment in the Highland economy and securing medium term financial sustainability for the Council.

Members approved the three strands within the strategy, covering:

• Investment in people, infrastructure, places and business across the Highland region;
• Recovery, Improvement and Transformation;
• Key savings themes for delivering a balanced budget.

Members also agreed that there will be no increase in Council Tax rates for the financial year 2021/22, a one-year freeze enabled through Scottish Government funding.

The budget includes sustaining non-earmarked reserves at a minimum of £24.7M which provides financial sustainability in the medium term to allow for future risks and enable future investment.

There was cross-chamber support for the collaborative budget, which will kickstart an ambitious, phased investment plan encompassing a £6M Economic Prosperity Fund, a £1.5M Visitor Management Strategy, £2.1M place-based investment, £0.2M additional local ward discretionary funding and £2.25M for a Recovery, Improvement and Transformation Fund.

In addition, the Council’s reprofiled capital plan, as presented to Council in January, will see capital investment of £260M across the region over the next two years.

Depute Leader and the Council’s Chair of Recovery Board, Cllr Alasdair Christie moved the budget. He said:

He said: “A more positive Government settlement than anticipated, together with in-year financial prudence and building reserves during the previous year, has enabled a stronger foundation to address the many challenges we face moving forward.

“I would like to thank colleagues across the Chamber for their support in agreeing the principles behind, as well as the detail within, the budget. This is a very positive budget for the Highland region, which will target resources to stimulate growth and recovery, thereby improving health and prosperity in our area. A £6M Economic Prosperity Fund aims to address business growth, opportunities for our young people and tackle unemployment. Our £1.5M Visitor Management Strategy, place-based investment of £2.1M and £0.2M in local grass-roots investment will all contribute to mitigating the worst impacts of Covid.”

Leader of the Opposition, Cllr Raymond Bremner added: “These are challenging, and unprecedented times for our communities and we will all need to work together to help each other through the difficult times ahead. It is for the benefit of everyone that we continue to work together on a programme of recovery that regenerates the Highland economy and maximises all opportunities in our path.

“We are grateful for the significant funding received from the Scottish Government which is helping us to sustain our communities through this period. The investment agreed here today enables a more positive outlook for the immediate and long-term future of our Highland communities.”

Depute Budget Leader, Cllr Matthew Reiss added: “I want to thank all those, members and officers, who have worked together to develop a first class plan which we can be proud of and which is genuinely designed to promote health, wellbeing and prosperity across the region. Everyone has been touched in some way by Covid and the impact of the pandemic on our lives, our families, our livelihoods and our mental health. If we can even in some small way, reduce or reverse some of the harms, we will have done some good.”

Cllr Jimmy Gray, Chair of the Brexit Working Group and the new Chair of Corporate Resources said: “A key plank of this plan is about protecting jobs and stimulating economic conditions, investment and skills to create new jobs and opportunities. The public sector is a huge employer and can make a big difference in this respect. The decision to rebuild our reserves will provide more resilience in the challenging times ahead to deal with emergencies.”