Moray Council warns of increasing budget cuts

Moray councillors are being warned increasing budget cuts will be needed due to the continuing impact of dealing with the coronavirus pandemic.

The hit to the authority’s finances is now believed to be nearly £2m greater than the last estimate two months ago.

Councillors were told in July that the net impact of coronavirus was estimated at just under £5.5m.

A new report to members reveals that figure has now risen to just over £7.4m.

Further staff costs, lost income and extra spending on areas such as have homeless accommodation and planning for blended learning in schools have combined to push the figure up.

The report warns that budget savings and a redesign of the authority’s services will likely be needed in the next financial year if the council is to leave itself with enough reserves to meet requirements and weather further financial storms.

A further report on the financial impact of the pandemic is due in November.

An Accounts Commission’s Best Value Audit Report last month highlighted “deteriorating performance” and evidence of declining satisfaction in many services.