Highland Council budget overspend shrinks to £8.7 million, local authority reveals amid ongoing efforts to tackle Covid-19 impact
A BUDGET hole at Highland Council caused by the impact of the coronavirus pandemic has shrunk by a further £2.6 million.
The council's projected overspend for the year fell from £11.3 million to £8.7 million when councillors heard their latest update today.
The fall takes into account "additional government funding".
However, the local authority said that there "still remains a great deal of uncertainty", stemming from the potential of a servere winter, further Covid-related issues and the impact of the exit from the Brexit transition period on January 1.
The council plans to continue efforts to reduce the overspend by "wherever possible" reducing non-essential costs, and also by keeping staff vacancies unfilled.
A number of options to deal with a year end overspend also include the use of reserves, the use of contingencies, or the use of fiscal flexibilities including borrowing.
Budget Leader Alister Mackinnon said: “It is still early in the financial year and there is a significant risk that unforeseen events occur which would result in additional cost pressures. A severe winter, storm events, and demand-led services, such as looked after children could have significant impacts.
"Other risks relating to the EU exit remain uncertain, but we anticipate additional increased costs for supplies and a further loss of income in relation to harbour dues. The impact of further Covid-related issues and future waves could also be significant.”
He added: “A greater focus will now shift to planning for the 2021/22 budget, and ensuring not just recovery, but longer term sustainability in future years.”
