Budget invitation sent
The Scottish Government’s Cabinet Secretary for Finance, Employment and Sustainable Growth and officials have been invited to visit Inverclyde to see the 'real difficulties' felt by the Council in setting its budget.
The move, by Inverclyde Council Leader, Councillor Stephen McCabe, is the Council’s interim response to the ‘offer’ made to local government in Scotland which delivers a budget cut to Inverclyde Council of £6.55m.
The Council Leader also calls for unfettered use of £250m health and social care funding to councils to allow budgets to be set and for council tax billing to proceed.
In his letter, Councillor McCabe, said: “I am writing to clarify my Council’s position in respect of the “offer” included within the revised Finance Circular No. 7/2015 reissued on the 24th December.
“I had not intended to reply at this time but following further consideration I do not want a lack of response by the deadline of the 22nd January to be interpreted that the “offer” you made is acceptable as it will have significant impact on the services delivered by my Council with resultant impacts on some of the most vulnerable in our community.
“Inverclyde Council has suffered a like for like £6.55 million cash cut in Scottish Government Grant between 2015/16 and 2016/17. This equates to a 3.87% reduction in grant on top of which there are inflationary pressures, the end of National Insurance contracting out and increases in demographic pressures, all of which have to be absorbed. Once these are factored in Inverclyde Council requires to save over £12 million between 2015/16 and 2016/17 simply to stand still. For this to be portrayed as a manageable reduction shows no understanding of the significant financial pressures on Councils and the impact this will have on service users.
“I understand that there are talks ongoing in respect of the £250 million Health and Social Care monies and it is vital that Councils get unfettered use of this funding and that this is confirmed as soon as possible to allow Councils to set coherent budgets and to allow Council Tax billing to proceed. Until clarity on the £250m is received, and we have had the chance to complete our budget, which I anticipate being around mid-March, I will not be in a position to formally respond to your “offer”. Please therefore consider this as an interim response.
“I would be more than happy for you or your officials to visit Inverclyde and to review our approach and finances on an open book basis as I believe this will better illustrate the real difficulties being felt by Councils such as Inverclyde rather than the unhelpful smoke and mirrors approach currently being taken by the Government in order to deflect the criticism that will undoubtedly come from the inevitable budget cuts.”