Dark days ahead for council budgets

GLASGOW, SCOTLAND - MARCH 04: A road user tries to avoid potholes on March 4, 2011 in Glasgow, Scotland. Councils across the UK are struggling to repair roads following damage caused by the coldest December since records began. (Photo by Jeff J Mitchell/Getty Images) : Even crucial services, like roads maintenance, face significant cuts.

A combination of service cuts, use of rapidly diminishing reserves, diversion of Crown Estate funding… and an eight per cent rise in council tax. That is the formula adopted by Comhairle nan Eilean Siar in order to balance its budget.

Following a period of consultation which ends tomorrow (Friday), final decisions will be made next Tuesday but, with so little flexibility at the Comhairle’s disposal, there is unlikely to be much change from the current proposals.

The Comhairle has fared by far the worst of any Scottish local authority over the past decade, with the real terms loss of 18 per cent in its revenue support grant due to a funding formula applied by the Scottish Government which penalises depopulation and falling school rolls.

A plea last month to the First Minister from the Comhairle for additional funding, perhaps through the Islands Cost Crisis Emergency Fund, in order to limit the size of council tax increase did not meet success. Even an eight per cent increase will bring in less than £1 million.

There has been particular frustration this year as the Scottish Government received additional council funding from the UK Government which the Finance Secretary, Shona Robison, said should make any “large” council tax increases unnecessary. However, the funding formula ensured that almost none of it came to the islands

Cllr Paul Steele, leader of the Comhairle, said this week: “Quite simply, Comhairle nan Eilean Siar has not been given enough money to deliver services at their current level.

“The Comhairle’s budgetary decisions will have an impact on our communities, and it is important that the public have an opportunity to view and comment on the budget proposals in advance of the final decisions”.

The savings through service cuts have been spread widely across the council’s “controllable budget” to minimise impacts. However some which have suffered in the past will continue to see a process of attrition.

For example, the library service will lose another £37,300 and special education transport will lose £30,000. Fostering and adoption also faces a £30,000 cut.

The roads budget is set to lose almost ten per cent of its budget with a £200,000 cut. With road maintenance already under heavy strain, there will be concerns that this is likely to mean “more pot-holes’.

One of the biggest reductions is to adult learning with a cut of £108,000 representing a proposed loss of almost a third from its current budget.

The use of Crown Estate funding to fill gaps in what should be mainstream council expenditure has now become established practice, though this was not what the money was intended for when the Crown Estate was devolved to the Scottish Government.

It was meant to go to economically fragile coastal communities which host aquaculture and other marine activities from which the Crown Estate raises money through licences.

Instead, around half a million pounds is being deployed on such mainstream demands as subsidising evening bus services (£120,000) and community transport (£70,000) as well as £71,000 to support “creative industries” as well as leisure facilities.