How might current plans change?
It is very unlikely that the Council will have significantly more money available than current plans show. Most of that money comes from the Scottish Government, and they announced firm figures for 3 years ahead in December 2007 that formed the basis of the current plans.
We expect some changes in government grant, but these will put funds into specific services e.g. increased grant for the implementation of free personal care. As the population of East Lothian is growing, and population is the main factor behind the distribution of government grant, we may see some marginal increase in grant, but this may be offset by a reduction in expected council tax receipts as the growth in house numbers slows due to the credit crunch.
As it is likely that no more money will be available, we will have to cope with the effect of the credit crunch and any changes in national or local policy by redirecting the money we have. This puts a lot of emphasis on achieving efficiency savings.
The Council will have to consider whether these changes require a change in spending plans. Can services manage the change within the budgets already allocated? This will be difficult. For example, the most recent contract for the supply of gas resulted in a 60-70% increase in costs, and this will disproportionately affect those services that heat a lot of buildings, such as sports centres and schools. This will have to be reflected within the detail of the budget but will it require a shift of money between departments?
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