As Angus Council prepares to deliberate upon its 2025/26 Budget this Thursday (27 February), the full range of reports are now available on the Council’s website Special Angus Council 27 February 2025.
As has been the case in previous years, these reports continue to demonstrate the significant challenges made to the Council's future financial sustainability and the impact upon service provision in Angus, with the projected budget gap of £9.5m increasing to £11.7m, largely due to an increase in National Insurance payments.
They also reflect the outcomes of the budget consultation process (report 50/25 refers) and members would like to thank those who took part as it was helpful to receive feedback and comments on people’s views on budget priorities.
Report no. 58/25 outlines the background to setting the Revenue and Capital Budgets for 2025/26 and sets out a summary position for the 2025/26 Provisional Revenue Budget and the 2024/29 Capital Plan.
It also advises elected members of the further steps required with regards to the setting of the Council Tax for 2025/26.
The Scottish Government Revenue Grant Support allocation to Angus Council was provisionally set at £287.836m and is conditional upon the Council agreeing to deliver upon certain commitments. Additional government funding is being provided but the allocations to individual councils are yet to be confirmed.
However, it is estimated that Angus Council will receive a total grant allocation for budget setting purposes of £296.990m. It must be emphasised that a large part of the additional grant funding is either ring-fenced, or for specific spending commitments.
Budget spending levels are determined by the amount of revenue resources that are available to the Council. They comprise general revenue grant support from the Scottish Government, income raised locally through Council Tax and other fees and charges. In addition, the Council may supplement these resources on an ad-hoc basis by taking money from the Council’s Reserves (if available).
It is a statutory requirement for the Council to set a balanced budget meaning its budgeted expenditure must be matched by budgeted income. The amount of income (funding) the Council expects to have available therefore determines how much can be spent.
The report, highlights areas of income and expenditure that have either still to be confirmed or are yet unknown, as well as funding that is already ring-fenced or committed.
It highlights that while a balanced budget for 2025/26 can be achieved, a sizeable funding gap will remain. Based on the budget proposals from the Council’s Administration Group this funding gap will be £10.987m. Even after an assumed increase in the Council Tax base (the number of properties which pay the tax) and budget savings through the Council’s Change Programme a sizeable gap will remain which will need to be addressed through a combination of increases in Council Tax and potentially use of the Council’s Reserves.
Table 1. Savings made since Financial Year 2013/14
Financial Year | Budgeted Savings |
|---|---|
2013/14 | 6.3 |
2014/15 | 6.2 |
2015/16 | 5.7 |
2016/17 | 10.1 |
2017/18 | 6.6 |
2018/19 | 10.6 |
2019/20 | 10.4 |
2020/21 | 10.2 |
2021/22 | 5.2 |
2022/23 | 6.8 |
2023/24 | 13.3 |
2024/25 | 6.3 |
Sub-total (12 years) | 97.7 |
2025/26 (proposals) | 2.9 |
13 Year Total | 100.6* |
* - this total represents more than 27% of the 2025/26 net budget, i.e. the Council has over the last 13 years had to reduce its net expenditure by more than a quarter whilst still providing all the services it is required to by law.
Due to the continued prudent approach taken by Angus Council over the years, the savings proposed this year at £2.9m is the lowest amount in the last 13 years as the Council seeks to avoid further cuts to services. This is coupled with nearly £5m in extra service provision (budget issues) and plans to invest £162m over the next 5 years in the Council’s capital plan.
Angus Council Leader, Cllr Bill Duff said, “As an administration we have to take a sober view of our budget, future risks and climate change and plan accordingly. As reflected in our budget consultation, people want, and we recognise that Angus Council needs to spend significantly on some capital projects which will require additional funds.
“We are also mindful that many families are struggling and yet it’s council services that support those most vulnerable, so there is always a balance to be found in reducing costs of families while having the services there to support those really struggling.
As has been the case over the last several years, the budget decisions have been extremely hard, but we believe that this strikes the best balance that we can achieve.”
Notes to Editors:
The Special Full Council will take place from 1pm on Thursday 27 February at the Town and County Buildings, Forfar. The meeting will be shared live on our YouTube channel - Angus Council LIVE
The Leader and Convener’s full speeches will be shared on Angus Council’s website News Section immediately after they have spoken at Council.
All the documents for the Special Angus Council meeting can be found via our Forthcoming Council Meetings webpage.
For further information please email communications@angus.gov.uk