Budget Speech 2015

Meeting challenge and achieving progress. This is what this council is focused on and is delivering for Argyll and Bute.

Our challenge overall is set out in our Single Outcome Agreement – to build a prosperous economy through a growing population. This challenge is for everyone who contributes to life in Argyll and Bute. I will make an important announcement in relation to partnership working later in this speech.

The progress the council is achieving can be seen across Argyll and Bute, in regeneration projects that are developing our communities, in the partnership links that we are forging with different sectors, and in the national recognition that so many of our council services are earning.

I’ll say more later about both challenge and progress, but let me first set the context in which we meet today.

Last year I presented a budget which, had to recognise the very difficult political position that the Council was in, the financial challenges that it faced and the need to create a period of settlement and stability. In our work and our policy approachwe have created this two year period of relative financial stability so that we can take time to plan strategically for the significant funding challenge we must meet as a council from 2016.

Financial challenge means that councils, with reducing resources, cannot do as much for our communities as we and they would like. Today we must decide to apply 1% savings across our council services. In the year ahead we must continue our work in planning for the difficult choices needed to meet the very significant funding reductions from 2016.

What this council is demonstrating however, is that whatever resource limitations we face, we can achieve progress and change where it is needed.

Here are just some examples:-

The council is investing millions of pounds in regenerating our communities

  • £30 million in regenerating our towns
  • £20million in creating a £45 million renewables/marine/life science hub around Oban
  • £25million investment in new schools

We have attracted millions of pounds to the area

  • £3.3 million heritage lottery fund for Rothesay Pavilion (6m total from external funding).
  • Over £1million of active travel funding from Sustrans
  • £400,000 funding from Creative Scotland to help boost youth arts across Argyll and Bute

We are delivering improvements to the quality of life in Argyll and Bute

  • £23million investment in our road infrastructure
  • Over the past three financial years our Business Gateway, has provided support to almost 1500 new and existing businesses and our Employability Team has supported 1,070 local people in their search for employment.

Several of our services have won national awards for excellence and innovation.

  • The council’s Empty Homes team has won a clutch of national awards and has been named Scottish Empty Homes Champion of the year for its work in bringing empty houses back to life as much-needed affordable homes.
  • Our school meals service has received the Soil Association’s Bronze award for its work on providing healthy, nutritious meals for school pupils every day.
  • Empowering communities to work to become more resilient in severe weather or other emergencies took silver at the COSLA Excellence Awards.

We are forging and strengthening links with different partners across sectors, communities and the area as a whole

  • Along with NHS Highland the council is driving forward health and social care integration
  • We have sought views from members of our communities on a wide range of topics throughout the year.

I could go on. The fact is that this council is achieving progress and change for the benefit of Argyll and Bute. We are doing what we committed to do through the SOA.

Effective financial planning underpins the progress we are making.

During this first year of stability, we have identified a series of actions we will take to maximise the resources we have and put them to best possible use for our communities. Cllr Morton will say more about those actions.

In brief though, because of effective financial planning, this council, despite a very challenging financial climate, is in a position to invest in creating the prosperous future that Argyll and Bute deserves.

Difficult decisions will still have to be made. Argyll and Bute is a wonderful, diverse area. Every part of it contributes to the success of the whole. The council therefore must make responsible, considered decisions that are in the interests of all of Argyll and Bute.

We have responsibility as individuals, we also have responsibility as a collective. The focus of this meeting today is agreeing a budget for this second year of stability.

The budget I present to you now recognises the detail contained in the regular reports that have been submitted to the Policy and Resources Committee throughout 2014-15 with changes to the budget assumptions used when preparing the 2015-16 budget and assessment of the impact.

Those changes advise on the reduced funding from the Scottish Government to us amounting to some £2.557m less following the moving from the flat cash settlement to the formula based approach.

Our budget recognises the external pressures that have impacts on our expenditure and the movement of funds to and from the Council.

  • Following our review of Council Tax funding we have updated our position to provide for a yield of £40.900m.
  • We have updated and revised our base budget to reflect a number of changes with the base budget as at December 2014 increasing this to £236,936m.
  • Following reviews and adjustments for pension contributions,inflation uplifts, and updating our employee costs will rise by £4.569m.
  • Non-pay inflation will rise by £1.091m following a number of adjustments.
  • Cost and demand pressures are provided for of £3.765m.
  • Fees and charges will rise by 3% providing additional income around £308,000 and in addition it is proposed to introduce a common charging policy for letting full size all weather pitches on a phased approach.
  • The 1% efficiency savings target will produce £1.822m for 2015-16 on top of the same amount now achieved for 2014-15.
  • Providing funding of £70,000 from the 2014-15 forecast underspend will allow 3 year funding of advice servicesby both Argyll and Bute Citizens Advice Bureau and Bute Advice Centre and a review of these services for the future.
  • In common with previous years we have received a number of requests from local organisations for funding and following a rigorous assessment and review of those requests we will consider the proposals lodged in the context of the Single Outcome Agreement, the financial commitment required, as well as risk and deliverability.

To conclude, I return to the importance of partnership working. This council is successfully forging strong links with different sectors, organisations, and individuals who all have an important contribution to make to securing a prosperous future for Argyll and Bute.

At the end of October, the council, in conjunction with a broad range of partners, held an Economic Summit. We brought together local and national politicians, businesses and partner agencies. We achieved consensus and commitment to take action to back Argyll and Bute.

In order to support this important outcome I am requesting the Chief Executive to bring forward a report on the structure of the Economic Development function in order to support the outcomes for economic growth as set out in the SOA.

Business, academic and public sector partners gave resounding endorsement to set up Argyll and Bute Sustainable Economic Forum.This Forum brings together key representatives from different sectors and different areas of experience and expertise. Its work will be key in driving forward economic development across the area.

It gives me enormous pleasure to announce that we have secured commitment from Nicholas Ferguson CBE, Chairman of Sky PLC to bring his expertise and knowledge to ABSEF, as its Chair. This is fantastic news for Argyll and Bute.

I am in no doubt that he will be extremely demanding of the forum in setting and delivering an ambitious agenda focusing on delivering economic growth.

Councillor Ellen Morton who played a key part in the Economic Summit will continue her work in spearheading council support for the Forum.

As the progress we have already achieved shows, we are committed to doing all that we as a council can do to create prosperity for Argyll and Bute. I have therefore asked the Chief Executive to ensure that the potential of the Forum is supported with adequate resources, and a report, if necessary, being brought before members at a future date.

As a council we are delivering investment, change and opportunities that will create prosperity through a growing population.

This hard work will continue. It will be shaped and supported by these priorities:

  • Make Argyll and Bute the best and easiest place to do business in
  • Provide outstanding education to young people, so that our schools attract people to live in the area.
  • In addition to core Education services our schoolswill work with FE and HE providers as well as business to ensure our pupilsare best placed to gain employment or create their own business in future.
  • Work with partners to ensure a supply of affordable housing that not only meets the needs of those who already live within Argyll and Bute, but attractsmore people to live here.
  • We will also make Argyll and Bute an attractiveplace to live by continuing to invest in the infrastructure of our towns, villagesand islands.
  • Promote and market Argyll and Bute to encourage companies and individuals to relocate to this area.
  • Improve strategic transportation links. We will make best use of our airports, work with ferry companies to enhance services and bring pressure to bear onthe Scottish Government and Transport Scotland to find substantial solutionsto the current limitations of the A82/A83.
  • Take advantage of the opportunities improved broadband availability brings and continue to demand improved mobile phone coverage.
  • Use Council resources and facilities innovatively to generate income in order to protect and enhance services. For example, the TIF programme in theOban and Lorn area.
  • Help our communities to help themselves. We will be pro-active in makingsure that our communities are empowered to work in partnership with theCouncil to meet their local needs.

We have a clear focus – to build a prosperous economy through a growing population. We have a financial strategy in place to underpin and create opportunities for growth.We are turning determination into action and results.

In brief, this council is meeting challenges and achieving progress for Argyll and Bute.

I would say to everyone with part to play in the future prosperity of Argyll and Bute – work together with us.

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