Editor – The Observer recently reported that Argyll and Bute Council was projecting a budget deficit of around 15M for 2026/27. That figure took into account a funding settlement from the Scottish Government of 274M, which included an annual increase of 5.55 per cent.
Considering a cash reserve of about 122M was held in April 2025 (which had doubled in size in 12 months ), there would appear to be some serious budgeting problems.
Also, local MSP Jenni Minto said she was proud the Scottish Government budget had delivered on the needs of communities here in Argyll and Bute – tackling child poverty, supporting our NHS and growing the economy.
She remarked that the annual funding increase from the Scottish Government was more than last year but remained silent on the fact it was the lowest of any Council in the country; nor did she comment on executive remuneration costs escalating by 14 per cent, four times the rate of inflation, or that local councillors basic salaries rose by 21 per cent in 2025. One wonders what added benefit that is supposed to produce in terms of tackling child poverty.
After council budgets are agreed and signed off, there is a legal obligation to ensure spending is controlled within them. That is the responsibility of the executive team under the watchful eye of councillors representing the interests of their constituents. In circumstances where a shortfall is identified the easy option is to increase Council Tax or cut back on services, neither of which is acceptable to members of the community who have to pick up the tab and/or suffer the loss of vital services.
The reality is the growth in the economy to which Jenni Minto referred requires aspiring entrepreneurs operating efficiently in a competitive marketplace to generate a profit.
Argyll and Bute Council while operating in the public sector should be held to the same standards and to that end they need to look hard at the outgoings side of their income and expenditure account for 2026/27 and bore down on excessive layers of bureaucracy, with the associated revenue costs, in providing essential services.
We look forward to hearing what we hope will be a satisfactory outcome to the Council Tax negotiations at Kilmory in February.
