Angus Council’s finance chief on Thursday shared doubts that the local authority’s core functions can be met over the next two years due to funding cuts.
One councillor asked if it’s possible for the council to sustain “statutory duties” over the next two years, after millions of pounds of cuts made over the past decade.
Listed on the Scottish Government website, the duties include: “education, social care, roads and transport, economic development, housing and planning, environmental protection, waste management, cultural and leisure services.”
A council spokesperson in a release that arrived as the meeting began, described the current economic circumstances as “a perfect and damaging storm”.
A combination of “implications” from COVID-19 and Brexit on local government finances “still emerging and uncertain”; a steep rise in inflation and energy costs plus “real-terms cuts in Scottish Government funding” has led to “unprecedented pressure.”
Previously reported were £52 million pounds of savings needed to made over the next three years.
Today, the council’s finance director, Ian Lorimer said this number could rise.
‘The honest truth’
Scottish Conservative councillor for Montrose and District, Iain Gall asked: “We’ve seen £78 million of cuts in the last ten years. We’re in year one of three of the next £52 million of cuts.
“Is year three possible, if things don’t change with regards to settlements from the Scottish Government in this current situation?”
The council’s director of finance, Ian Lorimer said: “I suppose the honest truth is, I don’t know.
“We are planning on bringing a three year budget proposal to the meeting on the second of March. That will give an indication of just how close or how far away we are to being able to make it work over that three year period.
That depends on many decisions around, for example, council tax increases, and a whole load of other options, use of council reserves.
“The point I’m really trying to make in all of this, is that having already taken out that level of saving, the prospect of making that further level of saving on such a significant scale, and being able to continue fulfil all of the council’s statutory duties – I worry about our ability to be able to do that.”
‘Scale of the challenge’
In the release, Angus Council Leader, Councillor Beth Whiteside stated: “No-one wants to hear that council tax bills will rise or that services will be cut, but we have to be honest about the scale of the challenge facing us.
“We need to find the right balance between cutting costs and continuing to prioritise the tackling of poverty and delivering the services upon which our communities depend.”
‘Severe reductions, increased charges’
The council’s finance convener, Councillor Bill Duff, added: “Officers and elected members have worked very hard to craft this year’s budget. That has involved hard choices and will include increases in charges and Council Tax.
“However, Angus faces several more years of increasing difficult challenges to obtain a balanced budget and the public must expect more service reductions and increased charges in the years to come.”
