Highland Council is set to convene to determine this year's £642 million budget with proposals that include a three per cent Council Tax hike and £10 million more for roads, climate action initiatives, innovation in education, early interventions in children’s services and rural transport
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Later today Highland Council is expected to pass its annual budget which includes a Council Tax hike of three per cent.
The £642 million spending and cuts proposals are expected to sail through after it was jointly crafted by the council’s political administration and SNP opposition.
Amid the cost of living crisis, the rise in Council Tax is likely to be given a chilly welcome by Highland households despite the local authority saying it is needed.
The rise is worth around £3.9 million with leading councillors insisting that it is necessary to maintain core services and to close with the £34.1 million budget gap.
Council leader Margaret Davidson said it is “one of the tightest budgets” she had ever seen while demand on welfare services for hard hit locals had skyrocketed.
In real terms, the increase ranges from £22.21 up to £762.39 a year in the lowest Band for disabled people to £97.93 to £3362.14 a year at the highest in Band H.
More will need to be agreed to tackle the budget shortfall, however, and proposed measures include a huge range of savings and efficiencies worth £11.8 million.
On top of that £5.7 million in reserves will also be required to offset Covid budget pressures and the reversal of 2021/22 one-off items and other roll forward changes is worth £6.4 million in savings among others.
That comes after a Scottish Government grant saw core funding cut by £3.9 million while there is ring-fenced funding of £24.8 million for social care, £6.5m for education, and government policies like free school meals, music tuition and others.
The big ticket items to pay for are schools and nurseries (£164.4 million) and adult social care (£114.8 million) followed by £58.1 million on loan charges on the council’s massive debt of more than £1.6 billion.
But in better news, roads maintenance will get a significant financial boost with £5.5 million this coming financial year amid increased public clamour for more to be done about potholes and the state of the Highland network generally.
Of that sum £3.5 million is a one off investment in plant, machinery and the like while £2 million will be a recurring investment over time which totals £22.7 million over the coming year.
There will also be a £2 million investment in climate action, green energy and jobs that seeks to maximise the opportunities presented by hydrogen power, restoration of peatlands and forests as well as flood management and coastal protection.
The roads and climate crisis investments form part of the larger Health and Prosperity Strategy for the Highlands programme valued at £10 million which was first developed last year.
The strategy seeks to balance the current financial pressures, with the drivers for economic growth and recovery from the pandemic but essentially it is investment in the economy and securing medium term financial sustainability for the local authority.
In-year financial prudence and building reserves has enabled the Council to be in a position to invest in the Highland while balancing the budget and addressing the challenges and risks moving forward.
The proposed collaborative involving the independent, Liberal Democrat and Labour groups also proposes £1 million for innovation in education, £1 million for early interventions in children’s services and a £500,000 boost for rural transport.
Deputy leader Cllr Alasdair Christie, who largely leads on budget issues, said: “I am pleased that this is again a collaborative budget which I hope colleagues across the chamber will support.
“We are proposing a budget which has been targeted to improve health and prosperity in our area and which will set a firm foundation of investment on which to build a sound, immediate and lasting recovery.
“This additional investment builds on our Economic Prosperity Fund, Visitor Management Strategy, place-based investment, additional local ward discretionary funding and transformation money, as well as the Council’s agreed capital investment programme of £260 million across the region over the next two years.”
Leader of the Council, Margaret Davidson welcomed the collaborative work which has resulted in the current budget proposals, saying: “The additional £5.5 million we are proposing to put into roads alone will result in a considerable investment of £31 million in our road network over a three year period.
“This will be really good news for people across the Highlands. I am delighted that we have reached a balanced budget position and have a very positive set of proposals through discussion and collaboration with our colleagues and partners.
“I would like to thank the tireless work of officers and staff in helping us to achieve these investment levels and close the budget gap with a range of efficiency and management savings. It has been a tremendous feat to get to this stage and I am proud to present such a set of budget proposals despite tremendous challenges.”
Leader of the SNP opposition, Cllr Raymond Bremner added: “Our communities across the Highlands have been faced with challenging, unprecedented times over the past couple of years, with considerable uncertainty in respect of what lies ahead, especially with continual inflationary pressures.
“The council needs to continue its path of redesign and transformation in order to be sustainable into the future. How we use our assets and resources and work with partners and communities, over the coming years, is crucial to achieving climate change targets, efficiencies and a brighter future for the Highlands.”
Labour group leader, Cllr Jimmy Gray, added: “I am pleased that once again we have been able to develop a budget which protects jobs which are fundamental to the economy of the Highlands.
“Our budget proposals present a balance of investment and savings, while sustaining important services to communities and maintaining sufficient general reserves to see the Council through the risks and uncertainty ahead.”
The budget proposals will be considered at a meeting of the full council on March 3 where it will be moved by Cllr Christie and seconded by the SNP’s budget spokesman Cllr Ian Cockburn.
For the latest updates on the budget check our website by clicking here
