Highland council predicts £66.7m budget gap

Highland Council has warned it is planning millions of pounds worth of cuts to address a £66.7m budget gap over three years.

The warning comes ahead of Finance Secretary Derek Mackay’s budget next month, which will include the local government grant settlement.

Highland Council said it would consult with trade unions and the public over what services to cut, but hoped for an improved settlement from the Scottish Government.

The local authority’s budget leader Alister Mackinnon said: "The exact gap is very uncertain as although the UK government's budget has been announced, we will not have the Scottish government's budget and grant settlement figures until mid-December.

"Over the period 2013/14 to 2018/19 Highland Council has already had to implement budget savings of £102.1m and council tax rises of 3 per cent in each of the last two years in order to deliver a balanced budget.

"We have managed to do this without compulsory redundancies and at the same time have still invested in important projects across the Highlands - such as new schools, roads and free wifi."

He added: "Our reserves, however, are at the lowest levels in recent history and we are taking action to protect these reserves from reducing any further.”

Highland Council oversees an areas approximately the size of Belgium.