With Highland Council’s reserves down to their lowest level ever and a budget overspend, “there is absolutely no wriggle room to manage significant pressures” warned council budget leader Alister Mackinnon yesterday.
He told the council’s Corporate Resources committee that an overspend of £1.5 million and reserves down to £8.5 million, half the level recommended by Audit Scotland, showed the extent to which successive budget reductions and council tax freezes were making it difficult to manage demand-led frontline services.
He said: “We have done everything we can to protect frontline services and particularly services to children and young people.
“That is why our focus has been on finding ways to increase income, such as car parking, or ways to reduce expenditure in areas where we have no statutory responsibility.
“I know not everyone supports these measures, but no-one should be in any doubt that we have to deliver these commitments and also look for additional ways in which we can meet current and future budget challenges.”
Mr Mackinnon added that he saw no prospect of the budget situation improving.
He said: “I fear there are even tougher decisions ahead of us.”
The council’s director of corporate resources Derek Yule also emphasised the point.
He said: “The next budget in February must include proposals to reinstate the reserves to a more realistic level.
“It’s very rare that the council is overspent and members have to make tough decisions about where to cut services.
“They are really tough decisions and you can’t keep putting them off. You will require to make and stick by them.”