Budget forecasts show that the council is facing a budget gap of £14.5 million next year, 2025/26.

Councillor Jim Lynch, leader of Argyll and Bute Council, said: “There’s no getting away from the fact that this is an extremely harsh budget position. Some of the options that have softened the blow of previous years’ budget gaps have gone. Now more than ever, setting next year’s budget will be about making the most of what we have, rather than doing everything we’d like to for the area. Between now and then though we will continue to do all we can to find ways to support the many services the Council delivers every day.” 

At its meeting on 26 September councillors agreed just over £1.5m that could be freed up to help bridge the gap, as it was no longer needed for previously agreed specific projects. This followed a review of earmarked reserve funds.

The council had previously agreed a 100% council tax increase on second homes from April 2024. Scottish Government data had highlighted Argyll and Bute with the highest percentage of second homes, at 6.2% of total dwellings, compared to the national average of 0.9%. The council increased second home council tax in part to increase second home owners’ contribution to supporting local public services. 

At its meeting on 26th, the council considered an update report which highlighted that the budget gap would have been even higher without this decision – it has raised the £3.7m additional revenue expected in the council’s financial planning. 

Councillor Ross Moreland, policy lead for finance, added: “Every budget gap gets harder to fill, with budgets already so tightly stretched. Balancing the budget will be about looking at what we have a duty to do as a council, and how much more we can afford to do beyond that.”

The council will set its budget in February 2025. The Scottish Government is the main source of its funding. The council expects to find out towards the end of the year how much this funding settlement will be.