Fairer funding system needed for rural local authorities, says Far North councillor
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A CAITHNESS councillor has called for a fairer system of funding for rural local authorities.
Matthew Reiss, a Thurso and northwest Caithness representative, made the plea after it emerged Highland Council has to make savings of £39 million in the coming financial year.
He made his comments at a meeting of the Thurso Community Council this week when he pointed out that Highland has a revenue budget of £597 million to cover the running costs of council services for the year. That figure is 31.5 per cent of its asset base, which includes buildings, schools and other properties.
However, Mr Reiss said the average revenue budget for Scottish local authorities is 50 per cent of its asset base.
"We are under funded and our costs are higher. We need a fairer system. We have got to find savings of £39 million, an eye-watering sum, in 2022-23 and I don't know how the council is going to do it. It will be really painful. The Scottish Government has said we can increase council tax but we would need to put it up by 30 per cent to cover that gap," he said.
"Costs are going up, the energy price cap is being cut in April so people are facing increases of hundreds and hundreds of pounds. It is really serious," added Mr Reiss.
Community council chairman, Ron Gunn, said there are a number of worrying issues facing the county and claimed the local authority elections in May will be "one of the most important in recent times."
"We are facing problems with poverty, rising fuel bills, increases in council tax and rents and need strong representation from Caithness to fight our corner in Inverness," he said.
Ian Gregory of Caithness Roads Recovery also raised concerns about the rising costs for local people and warned of areas of multiple deprivation.
He said around £1 billion has been spent on trams in Edinburgh, £1.3 billion on the new Queensferry bridge while Highland Council is under-funded and has to make cuts of £39 million.
"The Scottish Government needs to be told about this and it will be," added Mr Gregory.
