Committee Set to Receive Latest Budget Position Update as Three-Year Funding Gap Increases
Dumfries and Galloway Council’s three-year funding gap has risen to £34.32M
Committee Update
The council’s Enabling and Customer Services Committee will receive an update on Tuesday 11 February regarding the council’s budget position and financial projections for the next three years.
Committee members will learn that the council needs to make estimated total savings of £34.32M over the next three financial years – 2025/26 to 2027/28. Previous estimates put the funding gap at £30M.
Factors Behind the Increase
The rise is due to inflation, the estimated cost of implementing nationally negotiated pay increases, and cost pressures on services. An example is the increased demand for children’s residential placements within the social work department.
Options for Addressing the Gap
The report states that the funding gap will need to be addressed at Full Council on Tuesday 27 February, when elected members will decide on the council’s budget for the financial year 2025/26. Options include:
- Members have been presented with budget savings options totalling £5.3M for 2025/26, increasing to £16.5M by 2027/28. These measures were sent for public consultation, with feedback heard at Full Council on 12 December. A summary of the feedback can be found here: Agenda for Dumfries and Galloway Council on Thursday, 12th December, 2024, 10.30 am – Dumfries and Galloway Council.
- Individual political groups were able to request further measures to be identified and progressed as part of the agreed budget process. These measures may be used in individual political group budget proposals to be voted on at Full Council on 27 February.
- Each 1% increase in Council Tax in Dumfries and Galloway generates around £850,000 per year. If Council Tax levels were increased by the rate used in last year’s council budget, increases of six per cent per year would generate an extra £5.5M per year from 2025/26, rising to £11.5M per year from 2026/27.
Committee Reactions
Committee Chair, Councillor Ivor Hyslop, said: “Every year our council needs to make tough decisions in late February and this year will be no different. The bottom-line is, like all local authorities facing similar pressures, we need to balance our books. Our reputation as a council for ‘sound financial management’ was highlighted last year by the Accounts Commission and we will continue to take a prudent approach to what is a challenging fiscal backdrop.”
Committee Vice-Chair, Councillor Richard Marsh, said: “We are extremely grateful to everyone across the region who took the time to fill out our budget consultation in October and November last year. Your feedback is proving immensely useful as our council makes preparations for setting its budget later this month. Your input will play a crucial role in shaping our council’s budget priorities for the next financial year.”
To read the full report go to: Monthly meetings calendar – February 2025 – Dumfries and Galloway Council
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