Council budget agreed

The council’s budget plans were approved today by Elected Members.

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As you’ll be aware, the council – like all local authorities – continues to operate in a very challenging financial environment.

We’re dealing with multiple spending pressures at a time of significant local population growth, continued demand for services, inflationary costs and an obligation to deliver national policy commitments.

Most of our budget comprises central government funding. The expected revenue support grant for the council in 2019/20 equates to a reduction of £0.198m. When adjusted to reflect funding for new policy obligations – such as investment in the expansion of childcare, health and social care integration, implementation of the Barclay Review and Carers Act – we are facing an effective reduction of just under £2.5 million (1.5%).

This has underlined the need to continue looking for ways to reduce costs or raise additional income.

Key points agreed in this year’s budget include:

• Investment in new, improved or expanded local schools and infrastructure, with a near £300 million programme of capital investment over five years.
• A £170 million investment over five years in council housing, including significant expenditure on new homes and the modernisation or extension of others.
• Council tax will increase by 4.79% in 2019/20 (the maximum permitted), with indicative council tax increases of 3% in 2020/21 and 2021/22. Council tax provides less than a quarter of the money we need to run local services.
• Rent for tenants living in council properties will increase by 5%.
• The council will draw on £3 million of its reserves to help set a balanced budget in 2019/20.
• The council will continue to develop its transformational change programme, introducing further innovation, new ways of working and helping to reduce expenditure and/or increase income. Some service reviews will take place to support new and efficient ways of working and look at options for service re-design, helping to reduce costs.

While this means change will be required, East Lothian Council has a strong track record of building on improvements to services while challenging ourselves to be increasingly innovative - as highlighted by last year’s very positive Best Value Report from the Accounts Commission. And we are a council which performs very strongly in comparison to other local authorities.

This is testament to the commitment of employees and we will continue to build on this in the years ahead.

We will need to look at the design of services and ensure the structures we have in place are as effective and efficient as possible, enabling us to deliver services within a balanced budget.  

We will develop our approach to transformation – for example increased digitisation, helping residents access council services online at a place and time of their choosing, allowing us to focus on the delivery of frontline services.

And we will continue to empower local residents and organisations to work with us in partnership to deliver on our priority of reducing inequalities across our communities.

Although it is a challenging time – and is likely to remain so – there are huge opportunities for us all at East Lothian Council to play a full and active part in creating the even more prosperous, safe and sustainable East Lothian, which is at the heart of our vision.

Angela Leitch

Chief Executive