Accounts Commission report underlines the challenge ahead for setting Highland Council budget.

As Highland Council prepares to begin its budget engagement process in January 2020, the local authority notes the recent Accounts Commission report published this week and call from the Chair of the Accounts Commission, Graham Sharp, who said:

“There’s a need for councils to continue rethinking how they deliver services, as well as look at ways to increase their income. For some councils in Scotland, finding ways to do this is getting more and more difficult as their current income doesn’t match demand.”

The Account Commission states that over the past 6 years as “…demand for services continues to grow, funding for councils from the Scottish Government has reduced by 7.6 per cent and is forecast to reduce further.”

The publication of the Commission’s report reinforces the urgent need for Highland Council tax payers to engage in the Council’s budget consultation process which begins in the New Year.

Budget Leader and Chair of the Corporate Resources Committee, Cllr Alister Mackinnon said: “The report by the Accounts Commission clearly sets the context within which we will have to set the Council’s budget with declining resources.

“Highland Council’s budget engagement will focus on efficiency, building reserves, increasing income and restructuring to enable a more flexible workforce, which will strengthen local economy and protects jobs.”

He added: “It’s vital that people in Highland take part when they have the chance, in the council’s budget engagement processes in January.  It will only be with local information, choices and preferences expressed that Councillors will be able to make the very difficult budget setting decisions that we face ahead of us to set next year’s budget.”

While the Accounts Commission’s stark warning of “Council budgets straining to keep pace with demand” underlines the reducing Highland Council budget over the past 6 years – the Commission recognised the investment that Highland is making in housing; and transparency in financial management reporting.

The report states: “Investment has led to an increase in the number of council houses. We are now seeing the effect of housing investment and the end of the right-to-buy scheme leading to an increase in social housing stock. Highland [among other Councils] have also increased their housing stock, each by more than 100 homes.”

And, regarding local authorities’ financial management and transparency, the Audit Commission’s review of 2018/19 management commentaries found that: “Both Comhairle Nan Eilean Siar and The Highland Council included these key aspects of transparency in their management commentaries.”

Highland Council will launch its budget engagement in the New Year and urges people to have their say.