COUNCIL officials are forecasting a budget gap of more than £10 million in Argyll and Bute in the 2027/28 financial year – after projected measures have been put in place.
A report has also warned that “political decisions” will have to be made on how much funding the authority can make available to the area’s health and social care partnership (HSCP), and to liveArgyll, the trust which runs leisure services in the area.
The initial budget estimate made by council officers for the next financial year, before any measures to balance the budget, is £16.2m.
Projected six per cent increases to fees and charges, and a forecast five per cent rise in council tax, along with previously agreed savings, reduce the gap to £10.1m.
The details feature in a report to the council’s policy and resources committee at its meeting on Thursday, May 21. The council is due to set its budget for 2027/28 in February 2027.
Executive director Kirsty Flanagan said: “As part of the 2026/27 budget process, indicative base allocations [to the HSCP] of £91.631m were agreed for 2027/28 and 2028/29, with future years’ allocations being subject to Scottish Government grant funding and the council’s overall financial position.
“The indicative base allocation for 2027/28 represents a reduction of £1m, reflecting the non-recurring element of the additional £4.218m funding provided in 2026/27.
“Political decisions will require to be made in respect of the allocation to the [HSCP] in future years. For the purposes of the budget outlook, excluding the £1m adjustment noted above, flat cash allocations continue to be assumed across all scenarios.
“These are only indicative planning assumptions and it will be a matter for council to consider any changes, as part of the budget process.”
She added: “Political decisions will require to be made in respect of the allocation to liveArgyll in future years. For the purposes of the budget outlook, flat cash allocations continue to be assumed across all scenarios, however it will be a matter for council to consider any changes as part of the budget process next year.
“In terms of council tax, a five per cent increase continues to be assumed each year in all scenarios. The average increase in council tax across all Scottish councils in 2026/27 was 7.78 per cent, with 16 increasing theirs by at least eight per cent.
“With a focus on longer term financial sustainability and in light of the significant forecast budget gap over the next five years, the level of council tax increases in 2027/28 and in future years will require due consideration by members, as part of the budget setting for 2027/28 and future years.”
