Major investment beckons as Highland councillors set to consider £1m outlay
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Highland councillors are to be asked to approve a spending spree valued at £1 million as key staff were reminded of the need to keep expenditure under control.
Next week’s full Highland Council meeting will discuss a huge portion of the cash set aside to deliver reforms, improvements and investments in money-saving and revenue generating projects across the region.
Councillors will be asked to approve the use of £1 million from the change fund’s total value of £2.5 million to help deliver reforms with the remainder "earmarked to cover risk".
That comes as chief executive Donna Manson and budget leader Alister Mackinnon have spent the week meeting staff to hammer home the need to maintain financial discipline throughout the year.
Both Mrs Manson and Councillor Mackinnon met all so-called budget holders to underline the need to maintain tight budget controls throughout the year.
It is part of keeping to the local authority's programme, named “a sustainable Highland”, that aims to deliver £37.456 million in savings over the next three years, as approved in February.
Currently, the local authority is wrestling with an overspend of more than £5 million while some 2018-19 savings are yet to be made.
At the same time, there is always concern that there is the risk that new financial pressures could appear such as rising costs.
Cllr Mackinnon said: “The council must live within its means in meeting customer needs and we must deliver our legal responsibilities.
“We simply can’t afford to spend beyond our means, no matter how compelling the case.
“We now have the lowest levels of reserves we have ever had and there will always be emerging pressures to deal with over the course of the year.
“This year’s savings will not be easy, but we have to deliver them. If we haven’t got the money, we can’t carry on as before and we have to change.”
Mrs Manson said: “Our budget holders are key to the success and they now understand the necessary controls which are planned and the important roles they play in order to restrict expenditure.
“The meetings with budget holders have been extremely positive, with managers fully engaged in being part of the solution.
“There has been really honest dialogue and lots of good ideas for how we can adapt and find ways of working together to make the changes necessary to deliver a balanced budget. I am impressed and inspired with the leadership I have seen in our staff.”
Among the budget measures to keep spending down are a freeze on non-essential vacancies, controlling the use of agency staff which cost the council more than £3 million last year, avoiding the use of consultants and outsourcing where possible as well as additional procurement controls.
