Council agree savings to close budget gap

The Highland Council has agreed savings to close a £17.8 million gap in its budget for 2011/12 and 2012/13, leaving a further £17 million to be found over the next two financial years.

Budget Leader David Alston told councillors that as a result of recent budget announcements by the UK and Scottish Governments, the Council faced a reduction in funding of 2.5% in the new financial year, which equated to about 6% in real terms.

He said: “The challenges will inevitably lead to significant changes in the way we provide services. The number of staff employed by the Council is estimated to reduce by up to 1,000 by 31 March 2013.”

He said the Council’s management structure had also been examined as part of the budget considerations. A confidential report to the Council identified management savings of just short of £1.4 million within a full year. Every service had contributed to this saving, which involved a net reduction of 22 posts, nine of which are currently vacant.

Councillor Alston added: “We will do everything possible to avoid compulsory redundancies, initially focusing on redeployment. Voluntary severance will be considered when appointments have been made and if no suitable redeployments are available.”