The budget position was on the agenda when the full council met recently.

Councillor Ross Moreland, policy lead for Finance and Commercial Services, said: “The level of savings Argyll and Bute is facing for its council services is dramatic. At the same time as money for services is going down, costs of providing services are going up. And unplanned, unavoidable costs can be significant – recently for example we had to agree to another £1 million+ to deal with the impact of the storm earlier this year.

“The council’s track record in delivering efficiencies is recognised as ahead of the game. Even so, our financial position is extremely difficult, and that’s not set to change any time soon.”

Over the last few years, the council has focused on delivering savings for the year ahead in response to single year funding settlements from the Scottish Government.

The Accounts Commission Best Value Report (April 2025) found that, “Given its remote and rural characteristics, [Argyll and Bute] council is ahead of the game in terms of achieving efficiencies, including through its use of digital technology with exciting examples of innovation within service areas. However, the potential for further management efficiency savings may now be limited.”

Councillor Moreland continued: “Given the scale of the challenge, we are taking a different approach to budget planning. The council will still receive Scottish Government funding for services on a year-by-year basis. However, we are planning longer term, the idea being to create new opportunities for supporting services by identifying savings or income streams that take a longer period to deliver.”

Planning will focus on four key themes: delivering services differently, empowering communities, increasing income, and right sizing the council’s asset base.

Work on identifying potential savings under these themes will happen throughout the year with a view to developing a five-year pipeline of savings.