Moray Council has tabled “drastic and uncomfortable” plans to plug its £12.7 million budget black hole.
Almost £9m in savings have been identified. But it still leaves a gap of £3.7m, which accountants are scrambling to fill.
On top of that there are considerable other uncertainties, including pay awards and future local government settlement packages.
And that could push the gap to as much as £18m in a worst case scenario, which may spell misery for residents.
‘I hope everyone’s ready for it’
The situation prompted a warning from Conservative deputy leader of the council Donald Gatt at a meeting of the local authority on Wednesday.
The member for Keith and Cullen said: “We’re not in a good position at all.
“Drastic and very uncomfortable decisions will have to be made.
“So I hope everybody’s ready for it.”
The £9m savings include £1.65 million from a potential council tax rise. Council reports that went before the meeting indicate a rise of 10% could be on the cards.
It comes after local authorities across Scotland bemoaned a council tax freeze imposed on 2024/25 budgets, and as Falkirk Council issued similar warnings about a staggering 15% hike.
And £1 million is expected from a “review” of leisure and library services, results of which are expected in the next month.
£12.7m needed to balance the budget
There is also an estimated £2.44m of Scottish Government money for a deal to maintain teacher numbers.
However there is still uncertainty over that figure, and councillor for Elgin North Sandy Keith asked for more clarity.
Interim chief executive John Mundell said it was “unclear” what the final amount would be.
However, following discussions with Cosla, that figure should become clear in the next two to three weeks.
Savings will also come from a workforce review, changes to the learning estate and improvements to energy efficiency.
In addition, a “budget workshop” involving heads of service found further savings of £370,000.
They include £61,000 from teaching English as a second language, £70,000 from educational psychology and £80,000 from the sensory education service.
And a further £90,000 saving will come from reviewing ICT contracts.
Can I have a say?
The local authority will hold in person and online public engagement events outlining their savings proposals. Dates have yet to be set.
And pre-budget meetings will take place in October and December before the council sets the budget in February.
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