COUNCIL officials expect a budget gap of over £10.5 million will need to be plugged in Argyll and Bute in 2026/27.
A report has revealed that over 100,000 has been added to the gap that was forecast when a key council committee last met two months ago.
It is also stated that a delay to the Scottish Governments budget announcement, from December until mid-January, will create further uncertainty for the council ahead of setting its own budget in February.
The details feature in a report to go before the councils policy and resources committee at its meeting on Thursday, October 9.
Executive director Kirsty Flanagan said: “Estimated future Scottish Government funding levels is one of the key assumptions underpinning the budget outlook.
“Whilst councils are recommended to prepare longer-term financial plans, with a focus on financial sustainability, this is more challenging with one year only finance settlements.
“Councils have continued to lobby via COSLA (Convention of Scottish Local Authorities) for multi-year settlements to assist with longer-term financial planning.
“The head of local government finance recently confirmed the Scottish Government’s intention to provide three-year revenue and five-year capital grant figures, albeit the level of detail remains to be clarified.
“This is very welcome and should provide a greater level of certainty in respect of our budget outlook planning assumptions.
“However, it is also worth noting that, as a result of the delayed UK budget announcement (now confirmed as November 26), at the time of writing, the proposed timing of the Scottish budget announcement is January 15, 2026.
“Although this timescale has still to be confirmed, given that the level of government grant funding is a key assumption within our budget outlook, this prolongs the period of funding uncertainty and confirmation of the budget gap.”
Ms Flanagan added: “In the mid-range scenario, the budget gap is now estimated at £10.586m in 2026/27 and £33.858m over the five year period 2026/27 to 2030/31.
“Council officers are continuing to explore budget savings options during 2025/26 and these will be presented to members in due course.
T”his is a very challenging budget outlook position. Variations to the assumptions, particularly in respect of future Scottish Government grant funding levels, would have a significant impact on the budget outlook.
“All assumptions will be kept under review, with the budget outlook updated, as and when further information becomes available.”
