“Chancellors emergency budget”
The Comhairle has set out the next steps in its budget strategy for the coming years in a period when it is clear public expenditure is going to reduce.
Based on work undertaken by COSLA the current projections are for real reductions in funding over the next three year settlement and beyond. As present the Comhairle is estimating that it will be faced with a funding gap of £5-6m a year for the next 4 years.
The forecast deficit of £5.5m in 2011/12 includes £1m in respect of the Comhairle’s estimated share of the £6bn of cuts in 2010/11 that is being proposed in the Chancellors emergency budget on 22 June, which the Scottish Government is deferring till 2011/12.
“£5.5m shortfall”
As well as the uncertainty around economic growth that will impact on the funding the government is able to provide, the major influences on the Comhairle’s funding gap will be budget pressures, inflation and pay settlements.
The Comhairle will not know what resources it has for 2011/12 until late in 2010, though the UK spending review announcement in the autumn will start to provide an indication of the likely levels of funding by means of the Scottish allocation.
The budget process has therefore started early to enable the Comhairle to respond effectively in this difficult environment. Over the coming months Comhairle officers will be working with the Scottish Government, COSLA and Trade Unions to seek to reduce the uncertainty around the 2011/12 budget.
To find the £5.5m shortfall the Comhairle’s will be seeking to achieve efficiencies in the way the Comhairle delivers services. This will include an ongoing drive for savings within Comhairle departments as well as corporate initiatives to deliver in areas including improved customer services and estate management.
“Discuss the challenges”
With staff accounting for around half of all Comhairle expenditure the Comhairle is also considering an HR strategy to effectively manage changes in the workforce. This has been subject to consultation with Trade Unions. The Comhairle has had a good track record in implementing Single Status without having to reduce the workforce and remains committed to its staff as the means of continuing to deliver services within the Islands. Significant savings have already been achieved through a number of early retirements from within the teaching profession and it is proposed this opportunity be offered to other staff over the summer period. Staff will also be offered the opportunity to reduce their hours voluntarily.
£2m of the £5.5m shortfall for 2011/12 will be sought through efficiency savings. The balance of savings, currently estimated at around £3.5m, may need to be found from a reduction in services and Members will be considering these over the summer.
The Comhairle recognises the importance of engaging with the wider community on any proposals to change services and will be holding a series of public meetings in September 2010 to discuss the challenges the Comhairle faces and the options it is considering.
The Comhairle has set up a dedicated area on its website (http://www.cne-siar.gov.uk/fcr/budgetstrategy.asp) where the budget strategy and related documents can be accessed. Comments and suggestions on the forward strategy are welcome and can be submitted via budgetconsultation@cne-siar.gov.uk
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