Argyll and Bute Council have already overspent their budget by £3.6 million in the first five months of the financial year.

The overspend is being put down to a £1.4 million forecast overspend for residential placements in social work, as well as £1 million spent on roads and infrastructure services, including school transport and ferry repairs.

The overspend is expected to hit £4 million by the end of the year, and the local authority has suggested a five percent council tax increase is likely as part of the 2025/26 budget, and it could even rise to as much as seven percent.

That’s part of a bid to cut the financial gap with the council facing a £14.5 million budget deficit, and that is still likely to be as much as £9 million after the rise.

A report on the local authority’s financial outlook will be considered by its policy and resources committee on Thursday, October 10.

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Executive director Kirsty Flanagan told our sister title the Dunoon Observer and Argyllshire Standard: “These overspends are partially offset with additional income in waste, reduction in landfill tax costs due to reduced tonnage levels in Helensburgh waste disposal, and vacancy savings across the department.

“The weather incident of October 2023 has resulted in a pressure from a revenue perspective of £3.567m as reported to the policy and resources committee on August 15.

 “Members agreed to how to fund this overspend in its entirety including £0.780m from Crown Estates funding, however as the 2024/25 funding has not yet been confirmed there remains a variance reported at this stage of £0.780m.”

And when discussing the council tax rise, she added: “In terms of council tax, a five percent increase had been assumed in the mid and worst case scenarios and a seven percent increase in the best case scenario for 2025/26 on the basis that the majority of councils increased their council tax by at least five percent in 2023/24 prior to the freeze in 2024/25.

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

“There will be kept under close review and the budget outlook updated as and when further information becomes available.”