Highland Council’s chief executive has written to council workers warning them a smaller workforce is one option to make necessary budget savings of more than £8 million.
In a letter from outgoing senior officer Donna Manson, she suggests staff might want to “buy” holidays in lieu of salary.
When asked about the letter and the way in which it was delivered to staff, a council spokeswoman said it was “self-explanatory”.
Last week Mrs Manson told council leaders she is leaving the authority to work in England.
Financial crisis will impact on the council
In her letter, sent yesterday afternoon, Mrs Manson said: “We are undoubtedly facing one of the most financially challenging times we have ever seen.
“Most of you and your families will be experiencing very real difficulties with rising costs of food, energy, fuel and interest rates affecting loans and mortgages.
“Just as the cost crisis is affecting individuals and families it is also affecting the council across all services. It is essential we immediately act to reverse an in-year overspend and identify ways to reduce our costs for the next financial year.”
Explaining that she has been listening to the thoughts and ideas of staff in meetings held in the last few weeks, she said: “By working together collectively we can re-prioritise and avoid the impact on staffing with the aim of avoiding redundancies at all costs.”
The departing chief executive said Highland Council was facing a £8.9million overspend, which was “mainly as a result of inflation and increasing costs.”
The financial crisis facing the council, she said, would require “wholesale change in the services and service levels the council provides.”
Next year’s budget gap for 2023/24 will be £40.9million, she said.
Mrs Manson said people management would be key to balancing the books.
One of the strategies to mitigate the forecast overspend would be “a people strategy to reduce, reshape and re-prioritise our workforce”.
She also said increasing income, service prioritisation, asset management, reducing costs in contracts would be a focus. Planned projects will be reviewed to asses whether they are still affordable.
At the end of the letter, it read: “Boost your work-life balance with our annual leave purchase employee benefit – open from Monday December 5 2022.”
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