Highland Council proposes a multimillion-pound rise in roads spending to deal with potholes
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Highland Council is seeking to ramp-up roads spending by £9 million over the next two years as potholes in Caithness and across the region are causing increasing concern.
The proposals are part of a five-year financial plan due to be discussed at tomorrow's full meeting of the council.
The report reveals that the cost of works to improve the region's roads has risen to £194 million and the cost to maintain the so-called “steady state” – no better and no worse than they are now – is priced at just over £25 million.
To deal with that, Highland Council is looking to spend an extra £5.5 million this year and £3.5 million next – that is on top of the £17.2 million already earmarked.
That brings the total investment on the network and in machinery, for more effective and longer-lasting repairs, to just short of the steady state investment.
The additional funding would be allocated in two tranches.
The first £5.5 million will be added to the rolling programme of road improvements and repairs, with new schemes to be identified by local area committees.
The second tranche of £3.5 million will go on plant and machinery to improve repairs by increasing the number of first-time permanent repairs.
Despite the investment, for each of the next five years the local authority also anticipates having to save £15 million annually.
Expected staff pay rises which are decided nationally or a lower than expected Scottish Government grant could spark a three to six per cent hike in council tax.
The local authority directly linked the issues, saying depending on various factors the council could face a budget gap of between £13.9 million and £120.4 million.
The council says it “anticipates” receiving more than £500 million revenue funding for 2021/22 from the Scottish Government, representing 80 per cent of the total external funding it receives.
“Any changes to this funding will therefore have a significant impact on the council’s financial situation,” the report states.
Currently, there is a stand-off after unions turned their noses up at a two per cent increase with the question of pay one of the major headaches for the council.
With council tax expected to raise £131 million for Highland Council this year, the report continues: “Council tax rates are determined locally but any future increases may be constrained by government policy.
“A range of annual increases from three to six per cent have been modelled in the expectation that in scenarios with greater reductions in core government funding a higher rate of council tax increase may be allowable.”
A proposed council tax increase for this year was only headed off after the Scottish Government stepped in with a deal that allowed it not to be imposed.
According to the report: “Pay costs reflect the biggest single expense that the council incurs with salary costs in excess of £300 million incurred annually.
“Annual pay awards of one, two and three per cent have been included in different scenarios – these are intended to reflect the potential balance that may need to be struck between demand and affordability.”
Related story – Highland councillors clash over spending surplus on road repairs
