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Crunch talks over Moray Council’s £14million budget shortfall postponed

Moray Council leader Stewart Cree admits difficult decisions have to be made.
Moray Council leader Stewart Cree admits difficult decisions have to be made.

Crunch talks between the leader of Moray Council and the Scottish Government about the authority’s perilous financial position have been postponed at the eleventh hour.

Stewart Cree had prepared detailed documents, laying bare the embattled authority’s accounts, in advance of a scheduled meeting with Finance Secretary Derek Mackay today.

But, on Tuesday evening, the council boss was “disappointed” to learn Mr Mackay was otherwise engaged in a Holyrood debate this afternoon.

Mr Cree claimed it was of critical importance that the meeting be rearranged “as soon as possible” and is determined to collar Mr Mackay while visiting Edinburgh on Cosla business next Thursday.

The cash-strapped council faces a £14million budget shortfall which must be addressed by March 2018. And officials have warned the authority will effectively go bankrupt in less than two years unless it makes “radical” savings.

Mr Cree has urged the Scottish Government to revise its funding system to allow authorities across the country a greater degree of financial breathing space.

The Keith and Cullen councillor said: “It’s a wee bit frustrating that the meeting has been cancelled, but I understand how busy government ministers must be and how prone their plans are to change.

“I am anxious to see Mr Mackay as soon as possible, so he is given prior warning of the situation which local authorities are facing, prior to next year’s budget.

“He needs to hear it from the horse’s mouth, and I am the horse on this occasion.”

He added: “I had prepared details on what we have been doing with our reserves, and what our resources are.

“We want to make the Finance Minister unequivocally aware of what the outcome will be if we can’t find some means of increasing our budgets.”

Mr Cree fears that “unpalatable” service cuts will have to be carried out by 2018 unless SNP ministers increase councils’ annual budget allocations.

And he added that, while government grants have increased by £9.6million since 2010-11, Moray Council has been compelled to spend £9.8million enacting Holyrood policies.

A Scottish Government spokeswoman said: “Finance Secretary Derek Mackay has accepted an invitation to meet Moray Council leader Stewart Cree.

“They will discuss a range of issues on local finance.”