Public engagement sought for Highland Council budget preparations ahead of 2025/26
People across the Highlands are being invited to take part in the next round of budget engagement in light of Highland Council’s financial forecast for 2025-26.
The local authority is inviting communities and staff to tell them more in their budget preparations for the coming financial year via their engagement platform at highland.gov.uk/budget.
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The budget engagement builds on extensive budget participation which took place in the winter of 2023-24.
A revised financial forecast for the council, taking account of already agreed savings and other measures, now suggests a remaining budget gap of £38 million-£54 million over the coming three years, from 2025/26 to 2027/28.
As part of the council’s medium-term financial plan, agreed back in February, and taking into account feedback by the public and staff, the council agreed a package of £54.6 million of budget savings.
The most significant proposed cuts include a £12 million reduction in funding for adult social care over three years with £7 million from this year alone; and reducing staff, mostly in middle and upper management.
This also included the use of a range of financial flexibilities and reserves to address a projected £113 million gap over a three-year period from 2024/25 to 2026/27.
A revised forecast, before taking account of agreed savings and other measures, and factoring in financial assumptions, is a budget gap over the next three years (2025/26 to 2027/28) ranging from £116 million-£132 million.
After allowing for budget savings and other decisions already made by the council, and other assumptions, these scenarios suggest a figure of a residual budget gap of £38 million-£54 million over the three years.
Council leader Raymond Bremner said: “Public and staff engagement in the lead up to our last budget was extremely helpful in shaping our thinking and decisions and I would encourage everyone to get involved in how the council spends our money.
“At the same time as making savings, and making best use of public funds, we will continue to support our ambitious Highland Investment Plan through our revenue budget decisions, which should see £2 billion of capital investment across the Highlands over the next 20 years and which will leave a valuable legacy for communities well into the future.”
Council convener Bill Lobban said: “Decisions already made by the council in February 2024 provide a very solid foundation to the council’s financial planning.
“It is essential the council continues to apply a multi-year, strategic approach to its financial planning and financial sustainability, and makes the necessary decisions to ensure expenditure plans are in line with funding levels.”
The council’s resources committee chair Derek Louden said: “There remains uncertainty regarding the impact of national budget decisions, which will be analysed to update the council’s forecast revenue budget for 2025-26.
“While inflation and cost pressure estimates are expected to exceed the likely level of funding that may be available to the council, there is an inevitable need to plan for further additional savings.
“It is important to listen to the views of our service users, our staff and community representatives, as we prepare our budget proposals.”
A financial update will be brought to the full council meeting next week.
