Warning services could be cut to balance council budget

In October, projections anticipated a funding gap of more than £21.5 million for the coming financial year 2025/26.

At the same time, warnings were made that nearly £65 million in cuts would be needed over the next five years.

Councillor Norman Hampshire, East Lothian Council leader and a Dunbar and East Linton ward member, told members of Dunbar Community Council at a recent meeting that work had already started on preparing the next budget.

He noted that there were likely to be “significant overspends” in certain departments of the council.

It is thought that adult social care and children’s services are among those “struggling to cope with funding that is available”.

East Lothian's councillors will be facing a number of difficult choices over the coming weeks and months (Image: Newsquest)

A spokesperson for East Lothian Council said: “IJB projected overspend, £3.2 million – mainly due to pressures in commissioned care services, specifically external care homes and support services, as well as delays to delivering some of the planned savings within the timescales reflected in the budget.

“Active consideration of measures to mitigate these pressures are under way.

“The forecast overspend includes the elements relating to IJB budgets, which it may be necessary for the council to meet through additional contributions if the overspend cannot be mitigated.

“This remains subject to ongoing discussion in the context of extremely limited reserve balances sitting within the IJB accounts.

“Children’s services projected overspend, £1.8 million – mainly relating to external residential pressures.

“Work is ongoing to identify options in East Lothian for clients in external settings who could be brought back safely to the area.”

READ MORE: East Lothian Council budget: Ten per cent council tax rise due in 2025

Mr Hampshire said at the meeting: “It is going to be a really challenging budget going forward again.

“It is getting really, really tough.

“We have cut away everything that we can cut away.

“We are going to have to look at stopping things – it impacts on everybody.”

East Lothian Council told the Courier it was “committed to changing the way we work to deliver services more efficiently”.

READ MORE: East Lothian Council facing financial challenges 'never seen before’

A spokesperson added: “However, with a funding gap of £64 million, it will not be possible to close this through efficiencies alone.

“We have a legal responsibility to deliver a balanced budget, which means we have to consider reducing the amount that we spend, by reducing or stopping certain services, or increase the amount of income that we raise through council tax, fees and charges.

“We have a statutory responsibility to deliver certain services, such as education and social care, which account for almost 75 per cent of our budget, as well as certain aspects of roads and waste services.

“While we cannot comment on any proposals ahead of the budget setting process, we must ensure that priority is given to meeting our obligations in these areas.”

Mr Hampshire said that the council was waiting on finding out its funding from the Scottish Government before setting its own budget.

He added: “All services in the council are under real pressure.

“They have been cutting to the bone but all the costs are going up; energy costs are going up.

“They are really struggling and I feel for the staff trying to keep things going.

“They are under pressure, real pressure.”

READ MORE: East Lothian Council funding gap ‘most significant’ in modern times

Pippa Swan, chairwoman of the community council, described the situation as “bleak”.

She said: “It fills me with despair because I cannot see how even basics can be provided if the budget continues to be challenged in the way it is.

“When you start talking about losing support for education, children’s services, social care – that is devastating for people who rely upon those services to live from day to day.”

Mr Hampshire’s warning came days before research from Local Government Information Unit (LGIU) Scotland revealed that 70 per cent of councils in Scotland believed that they would be unable to pass a balanced budget within the next five years without immediate changes.

Nearly every respondent said that they believed cuts to services would have a negative impact on quality of life in their area and more than 90 per cent that cuts would increase the risks to vulnerable people.

Jonathan Carr-West, chief executive, LGIU Scotland, described the results as “grim reading” when it came to the state of local government finances across the country.

He said: “The message from our second annual State of Local Government Finance in Scotland builds on last year: we are nearing the point of no return.

“The report paints a picture of a system under continual and significant strain, with the scale of financial pressures increasing from 2023.

“Local government finances in Scotland are hanging by a thread.

“However, the thread has not yet broken.

“Today’s report delivers a stark warning that councils are in a precarious financial position and there is not much time until the sector starts to see potentially catastrophic consequences.

“Change is urgently needed.

“Councils will soon be unable to balance their budgets, meet their statutory duties or provide for their communities.

“We need to change course now before it is too late.”