Funding cuts pose a critical risk to Angus Council services, a report has warned.
As authorities await the full impact of the government spending review, the funding threat to Angus services has been identified as one of two areas above a “risk-tolerance” line for the council.
The other is a warning that the district could be caught up in a vicious circle over carbon-reduction demands, whereby a failure to meet legislative targets heaps additional fiscal misery on the area.
The issues were highlighted as part of a risk-assessment drawn up and reviewed regularly by Angus officials.
The strategic policy committee was told this week that funding issues are the key concern.
Risks are rated in terms of likelihood and potential impact, from five (very high/critical), to one (very low/negligible), and multiplied to give an overall score.
“The risk-tolerance line is a dividing line between those risks which cannot be tolerated and therefore must be actively managed — although there will be some risks we cannot influence either in full or in part — and those risks which can be tolerated because there are sufficient actions/controls in place to minimise the likelihood of the risk event occurring and/or to mitigate the effect of the risk should it occur,” said council chief executive David Sawers.
Angus has identified a funding black hole which could widen to £22m over the next three years, and officials say measures including one-off savings and major corporate efficiencies must be sought.
Service-user dissatisfaction, adverse publicity and the possible emergence of single-agenda interest groups are all possible outcomes of the funding issue, said Mr Sawers.
The chief executive also raised fears over any unwillingness to make difficult political choices hitting the council’s long-term health.
His report showed the Angus position on carbon reduction is just above the risk-tolerance line. It revealed actions already in place to deal with demands, including Carbon Trust accreditation and updated arrangements to address climate challenge commitments.
The document acknowledged the potential impact of competing priorities at a time of financial austerity.
Financial, legal and “reputational” penalties for failure to meet targets could be the outcome, the report warns.
A range of areas including IT, pay claims, staff absence and council buildings also come under regular review as part of the risk register.