Falkirk Council: Concerns grow over 'difficult budget' decisions to be made

Falkirk councillors agreed to write once again to Scottish Government in dismay at the amount of cash councils are expected to get for the year ahead.

Holyrood will set its budget at the end of February and it looks certain to be a “difficult” one for the public sector in general and councils in particular, members were told.

It is unlikely that any last minute funding will be made available, chief finance officer Amanda Templeman told a recent meeting of Falkirk Council.

The warning was clear to councillors at the meeting that saw them take the contentious decision to close Bo’ness Recreation Centre despite public protests and warnings about its vital role in the community.

In the current financial year, councillors rejected ways to save money that included closing school swimming pools and changing home to school transport eligibility.

Ms Templeman told councillors that this was a “pivotal year”.

“When we are making these decisions and we’re considering this settlement we need to do that with the longer context in mind to make sure we avoid a financial cliff edge in 26/27,” she said.

The council has been working on a financial strategy to tackle an estimated budget gap of £64 million over five years.

The plan is to use a mixture of savings – either through reorganising services or making cuts – council tax increases and raising fees and charges to meet the gap.

But the £64 million estimate was based on assumptions, including the grant that would be forthcoming from the Scottish Government.

The actual amount Falkirk Council looks likely to receive will be £1.2 million lower than estimated.

The financial strategy also anticipated a council tax rise of at least five per cent, possibly higher if necessary.

The five per cent council tax freeze not only removes the council’s ability to increase it, the £1.2 million cut reduces the effective increase to just 3.3 per cent.

The council had also hoped that an agreement signed this year – known as the Verity House agreement – would give them more leeway in how cash is spent.

But there has been little change around major policies, such as minimum teacher numbers, that could save the council money in the long term.

There is more bad news expected for capital funding, where a shortfall of £819,000 is looking likely.

Overall, the money from the Scottish Government has not actually reduced – but much of it will now be necessary to fund pay increases for staff.

Increasing costs of adult social care will also have to be met, which councillors were warned would have an impact on other services.

The impact of continuing high inflation will also continue to make life difficult for councils.

Ms Templeman stressed: “We are continuing to spend more each year than we are receiving in income and we just can’t sustain this position.”

The SNP council leader, Councillor Cecil Meiklejohn said the UK government’s underfunding of public services was to blame.

But, she acknowledged that the budget would mean there was “no getting away from difficult decisions”.

She said the council’s financial position was also the impact of decades of decisions to keep council tax and charges for services low in Falkirk.

She added: “We can no longer hide from what is difficult and sometimes you have to do the right thing, no matter how unpopular it is.”

The Labour group leader, Councillor Anne Hannah, said that “we have to recognise who is in the driving seat”.

She said: “Absolutely it is true that the UK Conservative government has been responsible for some of the problems financially we are facing but it is in the Scottish Government settlement that weare seeing the clear, real terms reduction.”

Conservative group leader Baillie James Kerr said that he was “not in the blame game” but said that the report meant “unpalatable decisions would have to be taken”.

He said: “As councillors we will need to stand up and be brave enough to take these decisions.”

The Non-Aligned Independent Group – councillors Brian McCabe and Robert Spears – put forward a motion asking the council to write to Shona Robison, cabinet secretary for Finance, and CoSLAwith their concerns at the budget settlement.

Mr McCabe said the settlement was “unrealistic and unsustainable” as funding for local authorities was yet again being cut.

He said that the settlement would leave Falkirk unable to produce a balance budget.

But Falkirk Council’s chief executive, Kenneth Lawrie, told members that the council does have the ability to set a balanced budget although it would “involve difficult decisions”.

While the group’s wording – describing the settlement as “unfeasible and unworkable” was not accepted, members did agree to send a letter to Ms Robison, noting their concerns.