Highland Council £36.7 million black hole branded an ‘embarr...

Highland Council £36.7 million black hole branded an ‘embarrassment’

Highland Council is again struggling to balance its books with its medium-term financial plan revealing a £36.7 million black hole over the next three financial years. The figures emerged as the new third year estimates were available adding another £14.5 million – the total sum includes £23.8 million of already agreed savings. A year ago Audit Scotland prepared a briefing on behalf of the Accounts Commission that looked at the revenue budgets of Scotland’s councils. It confirmed Highland Council has the largest budget gap in Scotland and that makes it increasingly likely that services will be squeezed while charges are likely to rise. So the new figures pile yet more pressure on the local authority with Green Councillor Chris Ballance branding it “an embarrassment for the administration.” Opposition leader from the LibDems Alasdair Christie called for an additional meeting next year to review the finances. Council leader Raymond Bremner said: “It is fair to say that a number of issues resulting in the forecast budget gap are not within our direct control.” He added: “There are clearly a number of financial risks and challenges which this report sets out.” One of them is a policy called Reducing Class Contact Time (RCCT) for teachers to allow them to plan lessons, mark work and so on. The council paper stated: “It is estimated that the cost of implementing RCCT in Highland could be in the region of £6.6m on a full year basis.” Then there is Adult Social Care (ASC) where a “key risk and uncertainty relates to the ASC budget and NHS Highland’s forecast of an £19.8 million overspend in the current financial year.” NHS Highland takes the lead on adult social care but the council also plays a role by offering a “one off reserve funding to NHS Highland of £5.6 million towards ASC.” Highland Council has been enduring a never ending series of budget gaps and cuts while also having a dire need to invest in infrastructure, such as schools. Do you want to respond to this article? If so, click here to submit your thoughts and they may be published in print.

Highland Council is again struggling to balance its books with its medium-term financial plan revealing a £36.7 million black hole over the next three financial years.

The figures emerged as the new third year estimates were available adding another £14.5 million – the total sum includes £23.8 million of already agreed savings.

A year ago Audit Scotland prepared a briefing on behalf of the Accounts Commission that looked at the revenue budgets of Scotland’s councils.

It confirmed Highland Council has the largest budget gap in Scotland and that makes it increasingly likely that services will be squeezed while charges are likely to rise.

So the new figures pile yet more pressure on the local authority with Green Councillor Chris Ballance branding it “an embarrassment for the administration.”

Opposition leader from the LibDems Alasdair Christie called for an additional meeting next year to review the finances.

Council leader Raymond Bremner said: “It is fair to say that a number of issues resulting in the forecast budget gap are not within our direct control.”

He added: “There are clearly a number of financial risks and challenges which this report sets out.”

One of them is a policy called Reducing Class Contact Time (RCCT) for teachers to allow them to plan lessons, mark work and so on.

The council paper stated: “It is estimated that the cost of implementing RCCT in Highland could be in the region of £6.6m on a full year basis.”

Then there is Adult Social Care (ASC) where a “key risk and uncertainty relates to the ASC budget and NHS Highland’s forecast of an £19.8 million overspend in the current financial year.”

NHS Highland takes the lead on adult social care but the council also plays a role by offering a “one off reserve funding to NHS Highland of £5.6 million towards ASC.”

Highland Council has been enduring a never ending series of budget gaps and cuts while also having a dire need to invest in infrastructure, such as schools.

Do you want to respond to this article? If so, click here to submit your thoughts and they may be published in print.