Jobs lost but Argyll and Bute budget saves services and invests in roads and social care

Jobs lost but Argyll and Bute budget saves services and invests in roads and social care

Argyll and Bute Council has approved a budget aimed at closing a £13 million gap for 2026/27, opting for a package of tax rises, savings, and targeted investment that leaders say protects essential services but still results in the loss of council jobs amid a punishing financial climate.

Coming after warnings that services and local jobs “could be lost” due to the “harsh reality” of setting the council budget for the upcoming year, the resulting agreement has saved 19.8 FTE (full time equivalent) jobs, but 16.4 FTE jobs were lost.

Council leader Jim Lynch described the process as “one of the most challenging budgets this council has faced”, warning that without decisive action, communities would have seen “brutal losses of service”. The council has already delivered millions in efficiencies, but the scale of the shortfall meant a 9.7% council tax rise became unavoidable.

Mr Lynch said the increase was “easy to criticise, extremely difficult to take, but the responsible choice”, arguing it preserves services that residents consistently identify as vital to local wellbeing and the area’s fragile economy.

The final package avoids several high‑profile cuts originally proposed, including:

  • Closure, sale, or transfer of all public toilets
  • Closure of walk‑in customer service points
  • Reductions to winter gritting and street sweeping
  • Loss of environmental wardens
  • Cuts to leisure and library services delivered through Live Argyll

Rejecting these measures saved 30 jobs, but the council confirmed that 16.4 full‑time equivalent posts will still be lost as part of £3.1 million in management and operational savings. A further £1.5m has been found through reduced debt charges.

Despite the financial strain, councillors approved a series of major investments designed to shore up infrastructure and protect vulnerable residents:

  • £24m for roads reconstruction over 2026–2028
  • £6m Weather Resilience Fund for essential repairs
  • £4m+ uplift to the Health and Social Care Partnership, taking its budget to £93.1m
  • School meal charges frozen
  • £72,000 for foodbanks across Argyll and the islands
  • £220,000 for local area committees and community councils

The value of these investments alone equates to roughly a 7% council tax rise, underscoring the scale of the financial challenge.

The budget also maintains or increases funding for services often first to face cuts in austerity budgets:

  • £154,000 uplift for Live Argyll’s library and leisure services
  • £95,000 for CHARTS (Culture, Heritage and Arts)
  • £75,000 for Argyll and the Isles Tourism Co‑operative
  • £30,000 for Mactaggart Leisure Centre, Islay
  • £20,000 for shinty and rugby development

Finance policy lead Councillor Ross Moreland said the recurring budget gap reflects the reality of local government funding, particularly in a region where geography drives up costs.

He highlighted the unique pressures of delivering services across Scotland’s second‑largest mainland council area and its highest number of island communities, including the need to operate air and sea transport links.

“Decisions made today deal with the harsh reality of local government finance and keep council services and support there for people who need them,” he said.

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