Pressures such as inflation, recovery from the ongoing pandemic and the war in Ukraine are all impacting on council finances, as set out in the latest finance update to Renfrewshire councillors this week.
In papers published today for Renfrewshire Council’s next meeting (15 Dec), details were provided outlining the challenges of a £35million budget shortfall in its annual budget over the next three years.
The Council has a current budget of around £480million, with 80% provided from Scottish Government grant and the remaining 20% raised through local council tax.
Two thirds of current spending is already committed on education and looking after the most vulnerable as well as adult and children’s services with the remaining third, around £175million allocated for growing the economy and services including waste collection, street cleaning and lighting, roads and parks and ensuring safe and clean neighbourhoods.
The council does not expect its budget to increase in the coming year and with costs and demand for services rising, this means some council services will change or be reduced and others may stop.
Council Leader Iain Nicolson said: “The recent UK Autumn Statement provided little respite for the pressures we’re facing delivering local services.
“We deliver a wide range of public services that those most in need rely on. We help look after our local environment and support our local communities at a time when people are undoubtedly needing our services more than ever.
“But now like many households, we are now finding our costs are increasing significantly, which is going to mean to protect key services we will need to make some difficult choices.
“As an administration, our priority is helping people with the cost of living. We also want to support local businesses as we emerge from the pandemic and ensure we help create the conditions that make Renfrewshire a great place to live, work and visit.
“It’s clear we will have to do things differently in the future and we will work closely with our local communities and businesses to invest in a Renfrewshire to be proud of.”