Council Budget: Bid for even more roads funding rejected by council
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Cuts forced on Highland Council by inflation and the cost of living have stoked severe political divisions within the chamber as the administration passed its budget unchanged, despite vociferous opposition.
The local authority managed to set a balanced budget for the 2023/24 financial year in what leader Councillor Raymond Bremner said was a “perfect storm” of circumstances ranging from inflation to the cost crisis and soaring energy bills.
To deal with the adjusted budget gap of £54 million, including loans charges, bosses agreed to raise Council Tax by four per cent starting from April 1 as well as slashing investment in a whole host of areas.
- EXCLUSIVE: Council tax could rise by 4%
- Council tax rise is due to 'perfect storm'
- Council Budget: No job losses amid £54m in cuts
- Council set to cut funding for additional support needs charity SNAP
They include funeral costs, supporting local charities providing vital services, mental and health projects sparking a wave of nine alternative proposals from opposition members in an effort to undo what they see as some of the most damaging aspects.
£23 million more for roads rejected
Yet each of them was rejected by majorities ranging from six to 13, indicating significant splits within the chamber but by far the largest in monetary terms was a Liberal Democrat proposal for roads.
Lib Dem group leader Alasdair Christie tabled an amendment calling for an extra £23 million to the maintenance budget for roads over the next two years – on top of the £20 million already pledged for this year.
That would have seen three per cent of the council tax hike used to ease the budget gap and the remaining one per cent would fund loans charges for capital investment to provide the previously mentioned £23 million.
That could have delivered road investment to the tine of a whopping £31.5 million this year alone but it was defeated by 40 votes to 29 with two abstentions – a decision that will likely stoke anger among road campaigners and motorists.
However roads investment will still rise this year – up from a baseline capital limit to £20 million and overall it should exceed £38 million but if the Lib Dem proposal was accepted, that overall figure would be somewhere in the region of £50 million.
Third sector still on the chopping block
A second point of tension was the defunding of various organisations that support some of the most vulnerable people in the Highlands – most prominently SNAP, which provides a vital service for people with additional support needs.
Bosses at the charity fear the loss of £65,000 in council funding “jeopardises the charity’s long-term viability” – provoking considerable cross-party anger and frustration.
SNAP currently supports 100 service users but still struggles to break even each year despite increasing fees to service users by 50 per cent last year, according to chairman Don Robertson.
He said: “While I recognise the major financial challenges that Highland Council is facing I feel that withdrawal of support to an organisation that serves the most vulnerable members of our society is a fundamentally flawed decision.”
'Perfect storm'
But again amendments brought to prevent these changes from taking effect were rejected by the administration because as Cllr Bremner explaining there was a need to concentrate on the core services provided by the council.
“We are facing a perfect storm of circumstances with inflation at the highest levels, rising interest rates and a cost of living crisis,” he said/
“This is compounded by uncertainty around future pressures and risks and a lack of clarity on ring-fenced funding. In setting this budget, we have tried to be fair. We have focused on removing duplication and over-provision and making sure our services are affordable.”
He added: “We have carefully considered where we target our spending and have chosen to invest in improving our roads, reducing our waste, supporting children and families, and protecting jobs.”
Convener Bill Lobban, addressing the issue of Council Tax placing more pressure on locals already battling raised prices, said: “Everyone is affected by the cost of living crisis.
“We recognise the pressures on people across Highland and have therefore limited the Council Tax increase to the lowest we can at four per cent, despite higher rises elsewhere, in order to protect low-income families and those experiencing in-work poverty.
“This is a budget which, as much as possible protects jobs and services, has only been made possible due to the sound financial management of both the current and previous Administration in building Reserves for hard times such as this.”
