The Highland Council will meet on Thursday 5 March to consider a three-year financial plan, which sets out recommendations to deliver a balanced budget and additional investment.
The report outlines the challenges and opportunities faced by the Council alongside the administration’s budget proposals, which, if agreed, would see:
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A 7% increase in Council Tax - 5% to support the delivery of vital Council services, plus 2% to support the Highland Investment Plan, a £2.1 billion, 20-year capital investment programme to deliver improvements in schools, local infrastructure and services.
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£12.2 million of new investment to strengthen key services and support, including in adult social care, housing, education, workforce development, and roads.
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A £61 million package of budget savings, income generation proposals and financial flexibilities designed to close a £46.7 million budget gap over the next three years. This includes an increase in Council Tax on second homes and long-term empty properties to support the Highland Housing Challenge.
Budget consultation took place with community councils, business groups, young people, and members of the public at the end of last year.
Leader of the Council, Cllr Raymond Bremner, said: “The administration is proposing a budget which increases income, directs support to those who need it, and delivers investment and sustainable growth across our communities. Through our Highland Investment Plan, we will deliver long-term capital improvements to our school estate and local infrastructure. Alongside this, a balanced package of savings and income generation measures will enable continued investment in the services people care about most, including adult social care, housing, and workforce development, as well as targeted support for young people and families experiencing poverty or barriers to learning.
“I’m particularly proud to bring forward a budget which includes a recurring £1 million grant and loan scheme to incentivise owners of long-term empty properties to bring them back into use as principal homes, helping to improve housing availability in local communities. A proposal to provide £7 million of additional investment to support the change and transformation work required in adult social care to develop a sustainable model will also help ensure people can live independently in their own homes as long as possible.”
Convener of the Council, Cllr Bill Lobban, said: “Councils continue to operate in a challenging financial environment, with significant pressures associated with the costs of delivering services, pay awards, inflation, and interest rates. We have taken a proactive approach to meeting this challenge – moving from a £108 million budget gap three years ago to becoming one of Scotland’s most effective local authorities when it comes to managing financial pressures, increasing income, and diversifying revenue streams, without relying on reserves to balance budgets. While the Scottish Government grant funding to Highland Council in 26/27 represents a small cash increase, it is unlikely to be repeated in future years and falls short of what Cosla asked for to meet service demand. This makes our robust approach to financial management, transformation, and long-term planning, which has been recognised by Audit Scotland, even more critical.”
The budget report and administration proposals are now available.