South Ayrshire Council has revealed that workforce changes will be unavoidable as part of the measures required to close its budget gap.
A report by the Chief Financial Officer from a council meeting yesterday confirmed that the local authority will face an estimated funding gap of £8.37m in 2026-27.
It highlights that the next five years will be ‘challenging financially’, possibly resulting in a budget gap of up to £28.6m by 2031.
‘Managing the financial pressures whilst seeking to deliver the council’s priorities will be difficult’, it reads.
The report also reveals that a ‘major component’ of its savings ‘will inevitably be linked to workforce change’.
With roughly 50% of the council’s annual net spend being allocated to pay, the report recommends that the local authority’s new Workforce Plan sets out a ‘specific targeted percentage reduction in the council workforce’.
The plan, which will be considered for approval in March, should also provide a ‘structured approach to reducing the workforce’ and its related costs, the report suggests.
Council members will meet on March 5 to set the local authority’s 2026/27 budget, as well as to discuss savings proposals and possible council tax rises.
South Ayrshire Council’s Policy Lead for Finance and Corporate Services, Cllr Ian Davis said: ‘As we approach the setting of the council’s 20276/27 budget, we are facing an increasingly difficult financial landscape.
‘Central government funding has not kept pace with rising demand and inflationary pressures, which leaves the council with limited room to manoeuvre.
‘Our priority remains to protect frontline services for our residents. However, to sustain these services we will have to consider a combination of savings proposals and difficult decisions around council tax. Any decisions we make will not be made lightly but will be necessary to preserve the services our communities rely on every day.’
