Argyll and Bute faces budget gap of up to £13.5m next year

Council Tax bills in Argyll and Bute look set to rise by 3% annually for the next five years, a report has revealed.

Fees and charges will go up by between 35 and 9%, and LiveArgyll, the trust that runs leisure centres and libraries across the area could get its funding cut by 3% next year.

But despite these measures, and a raft of savings agreed in February, the council still faces a budget gap of between £2.1m and £13.56m in 2022-23.

Over the next five years, that gap is expected to be between £17.8m and £75m, depending on factors including inflation.

Funding from the Scottish Government is expected to fall by between 0.5% and 1.5% every year, according to a report to Thursday’s meeting of the council’s policy and resources committee.

A 3% cut to the Live Argyll Management fee is included in the estimates, with executive director Kirsty Flanagan adding that there would be talks with the trust ‘in relation to future approach to support effective longer term financial planning’.

The report adds: “In terms of Council Tax, a 3% increase has been assumed across all scenarios, this being the increase applied in 2022-23.

“It will be a matter for council to decide the level of Council Tax increase.

“This is a very challenging budget outlook position and the level of Scottish Government grant and the pay award are the two assumptions that could alter the figures significantly.”

The council has set up a cross-party working group to look at its budget options.

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