Council officials are working towards a ‘high level saving’ of £700,000 linked to pupil-teacher ratio numbers in Argyll and Bute, a report has revealed.
The finance chief at Argyll and Bute Council has reported that the authority is anticipating a £3.2m ‘mid-range scenario’ budget gap for 2023-24 afer all budget-balancing measures are implemented – less than half of what it was when the last prediction was made in October.
A report by executive director Kirsty Flanagan has detailed a number of management/operational savings, which do not affect any jobs, that have been identified by the authority’s budget working group as it attempts to bridge that gap.
Her report says the saving linked to pupil-teacher numbers is also being worked on, with further detail to be provided ‘in due course’.
The report will go before the council’s policy and resources committee on Thursday.
Argyll and Bute Council is due to set its budget for 2023/24 in February.
In her report, Ms Flanagan said: “The executive leadership team have been exploring savings and income generating options to bridge the budget gap in 2023/24 and beyond.
“A number of management/operational savings amount to £2.322m in 2023-24.
“A high level saving of £0.7m in education linked to pupil teacher numbers has also been identified and further work is being carried out to substantiate this saving. Further detail will be brought forward in due course.
“Officers have previously advised that [the] Scottish Government have now granted a flexibility relating to the accounting treatment of service concessions and this will give rise to a recurring saving until the end of the life of the current service concessions.
“A paper with further detail on the service concessions flexibility, which will include a retrospective gain, will be reported to council as part of the budget.
“Officers are continuing to explore further savings and income generating options which will be reported via the budget working group and brought forward to the council budget meeting in February.”
A table below this section of the report describes the potential £700,000 a year saving as “education saving based on forecast pupil numbers”.
The forecast budget gap was £7.2m in the mid-range scenario when the policy and resources committee last met in October.
It is projected to be £13.8m before a range of measures are implemented, including a 3% cent rise in council tax and an increase of between three and nine per cent in fees and charges.
The report summarises £10.619m in measures to balance the budget, including £7.8m in ‘new savings’, £838,000 from increased fees and charges and £1.683m from the council tax increase.
Ms Flanagan said of the £13.8m figure: “This is an extremely challenging budget gap of a value that the council has not seen for a significant number of years.
“The increase to pay award as well as the rising costs of inflation are the two significant factors contributing to this large budget gap.”
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