Predictions of £5.1m council overspend

URGENT action is needed Highland Council’s budget leader has admitted after predictions were issued of a £5.1 million overspend by the local authority this year.

The prediction forms part of the council’s monitoring statement covering the period from April to June, due for discussion at a meeting of the council’s corporate resources committee next week.

Budget leader Cllr Alister Mackinnon said: “The council’s reserves, at around £8 million, are well below the minimum level recommended by Audit Scotland and it is vital that they are not depleted further by a year end overspend.

“Urgent action is required now to address the situation and to bring expenditure back under control by next March.

“This is an early warning and we are determined to take the necessary corrective actions, in a business-like manner, recognising the seriousness of the situation.

“We also face the risk of another hard winter which would eat into our reserves, so early and decisive action to address the projected overspend is vital.”

He added: “It is clear that there are harder times ahead. It is more important than ever to find every possible means of income generation to avoid job losses and protect essential services.”

Council management teams have developed proposals to reduce expenditure and increase income which will also be reported to the committee next week.