The financial squeeze from Westminster and Holyrood will put pressure on West Lothian’s £10m budget gap, councillors have been warned.
As the Prime Minister Sir Keir Starmer warned this week that things will get worse before they get better, the chief finance officer in Livingston said: “Prospects for all budgets are worsening rather than improving.”
Patrick Welsh told the Corporate Policy and Resources PDSP: “The extent and seriousness of the financial challenges facing local government in Scotland is unprecedented.”
It is unlikely that the financial picture will become clear before November. The Chancellor, Rachel Reeves announced a budget on 30 October.
Scottish councils have been waiting for the Holyrood government’s Medium-Term Financial Strategy since May. It was postponed by the resignation of the First Minister and then by the General Election.
Mr Welsh’s report to the PDSP said: “A report will be presented to Council Executive following the publication of the strategy, however, a revised publication date is yet to be confirmed.”
The council’s current projected budget gap up to 2027/28, subject to a range of risks, is £10.388 million. In addition, the level of available capital funding is severely constrained, with the capital investment programme likely to be subject to further reductions in grant funding.
Mr Welsh’s report added: “The 2023/24 net overspend position included one-off in-year savings of £1.964 million implemented during the year. The use of one-off savings and funding from a reserve to balance the budget means that the council has a recurring pressure in the base budget of nearly £4 million which, without appropriate action, will carry forward into future years.”
The council is midway through a series of severe budget cutbacks. Most recently the management committees of all community centres and community halls were asked to consider taking control of their buildings in a bid to shave £1m from council spending.
The only positive in Mr Welsh’s report- dubbed a Horizon Scan – was the fact that unemployment in West Lothian was at 2.6% in June lower than the Scottish rate of 3.1% and the UK wide rate of 3.9%.
By Stuart Sommerville Local Democracy Reporter
The Local Democracy Reporting Service (LDRS) is a public service news agency. It is funded by the BBC, provided by the local news sector (in Edinburgh that is Reach plc (the publisher behind Edinburgh Live and The Daily Record) and used by many qualifying partners. Local Democracy Reporters cover news about top-tier local authorities and other public service organisations.
