Vice Convener Warns Of Need To Close Budget Gap

The financial position facing The Highland Council is very much more challenging than at any time in the past 10 years due to confirmation by the Scottish Executive of  tighter grant settlements. Council Vice-Convener Michael Foxley, who is chairman of the Budget Working Group, said the Council would have to close a £20 million funding gap by the time it sets the Council Tax on 9 February, next year.

He said the Council had already met the efficiency target set by the Executive of £2.7 million and had identified savings and further efficiencies which had reduced the gap to £4 million. The task over the coming weeks would be to complete the savings programme.

The Council, which has a revenue budget of £465 million in the current financial year, has already indicated that it will aim to contain a tax increase to 5.5% in the new financial year. The current Band D in Highland is £1,086.

Councillor Foxley said similar pressures would be faced in the next two financial years but he said the Council would be making a case to the Executive for additional funding to minimise Council Tax increases.

Councillor Foxley said: "We will deliver on our efficiency targets. We are committed to modernising the way we provide services by maximising the use of new technology and developing a flexible and responsive workforce, who put customer satisfaction at the top of the agenda.

"We do, however, have pressures, such as rising fuel and energy bills and need to account for the settlement on equal pay and job evaluation. Some hard decisions will need to be taken over the coming months to deliver a sustainable budget.

"Emphasis will always be on the frontline services that the public tell us are important. We need to look hard at the services we deliver to ensure we are avoiding duplication and providing the most important ones in the most effective way."