A report by Chief Finance Officer Amanda Templeman outlines the measures available to tackle the deficit, which is estimated at £56.4 million over the next five years.

These measures include potential service reductions, fee increases, and Council Tax rises.

The Council’s Financial Strategy for 2025/26 to 2029/30 provides a framework for addressing the funding gap.

The report emphasises that the Council will need to take further significant action to ensure long-term financial sustainability, especially given that in 2024/25 Falkirk Council has the second-largest budget gap in Scotland, relative to its revenue. However, other local authorities are experiencing similar issues across Scotland.

Potential savings and income options

The report identifies how savings could be made, such as changes to service delivery, efficiency measures, and increased fees for certain services to help close the gap between recurring income and expenditure.

The Council has already made over £100 million in savings since 2010, but many of the easier savings have already been taken. The Council has also relied on its reserves to balance the position.

Over the five-year period of the Strategy, the Council has identified £34.6 million in potential savings, leaving a remaining gap of approximately £21.8 million that still needs to be addressed in the coming years.

According to the report, if these options are not agreed, more significant service reductions may need to be considered.

Council Tax

One key area considered in the report is an increase in Council Tax. Falkirk Council currently has one of the lowest Council Tax rates in mainland Scotland.

The funding gap of £56.4m already assumes a 7% increase in Council Tax in each of the next five years. A 7% increase in Council Tax generates around £5.6 million in revenue each year . However, this alone would not be enough to bridge the full deficit, and further increases are likely to be required.

Despite these measures, the Council remains focused on minimising the impact on essential services, particularly in education and social care, which together account for over 80% of the Council’s total expenditure.

The Financial Strategy also notes that recurring expenditure should be matched by recurring income, and reliance on one-off funding, such as reserves, is not a sustainable option moving forward.

Chief Finance Officer Amanda Templeman said:

"The financial options presented are for consideration, and no final decisions have been made. The report makes clear that the Council will need to balance increasing income and charges with reducing expenditure to manage its budget deficit."