Highland Council prepares to make budget savings

http://www.bbc.co.uk/news/uk-scotland-highlands-islands-37715261

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Highland Council is preparing to make savings of between £47m and £72m over the next three years.

The local authority published its pre-budget report with a warning that it is facing a budget gap of £26m next year.

The council said it will provide options for savings once the Scottish government settlement is revealed on 15 December.

Council officials said the degree of uncertainty was making planning difficult.

In a statement, Highland Council said if the grant settlement again saw a cut of about 4%, it would result in "real reductions in funding and the council will need to reduce or stop doing functions".

'Hands are tied'

The council set up the Redesign Board earlier this year in an attempt to generate additional income and improve efficiencies.

Council leader Margaret Davidson said: "This is really is the most worrying financial situation. Local government is undoubtedly shrinking and £10m came out of our revenue budget in February 2016 and we expect to be 25% smaller in 3 years' time.

"Our hands are very tied by the constrictions imposed by the Scottish government.

"This will mean that budget reductions will be much higher for services which are not ring-fenced or protected by Scottish government policy. Unprotected services could have to find 23% savings."

She added: "The scenario which I find most unpalatable is that taxes raised locally in Highland may be taken from us to be spent elsewhere in Scotland.

"This would be the first time any government in Scotland has raised taxes locally and taken them away for national purposes and I will be bringing a motion to council to challenge this proposal."