Council Leader Demands Funding System Overhaul Due to Budget Pressures

The council passed their 2025-26 budget. Council tax went up by 13 percent. They cut almost £4 million in spending. These cuts affect management, impacting policies. The council plans to invest nearly £30 million. This money goes to projects in the Wee County and will fund activity over the next year.

Higher energy costs and rising Employer National Insurance costs are partially to blame. Demand for services continues to grow quickly. Councillor Forson said budget talks were tough, stating options available felt very limited. She would have lowered council tax if possible especially since people struggle with living costs.

The council itself faces similar rising expenses and heating schools and care homes is a must. It creates a difficult balancing act. The council faced a £13 million budget gap caused by essential service cost increases, despite planning to spend £170 million total.

The Scottish Government gave £113 million, funding based on population numbers. Forson wants a funding system rethink that considers local needs. Forson called the current system “broken”, stating change is needed to help smaller counties while funding allocation needs reassessment as it doesn’t account for council size.

Small councils still need core services and necessary staff. Clackmannanshire has similar costs to Glasgow, but Glasgow’s budget is far bigger. Some areas have high care demands, and a growing elderly population increases care costs. Funding needs a fundamental review that ensures size shouldn’t penalize areas like hers.

Residents will pay 13 percent more in council tax. They saved £3.17 million by changing management, with only £643,000 coming from direct service cuts. Almost no policy savings avoid statutory service impact. They protect vital services such as childcare, education, and social care also remained untouched.

The council is looking at other areas for cuts. Management changes could impact service levels, but savings must happen to balance the budget. Rising costs drove this year’s budget process and Employer National Insurance added to problems. Clackmannanshire faces high needs in key areas, such as very high domestic violence rates.

High trauma, support needs, and child protection rates require budget increases in these key support sectors. Budget limits force tough choices, Forson shared. Demand for school support keeps growing and care packages require more money each year, leaving less money for other things. Residents will see service changes arise, but spending supports those with greatest needs, she added choosing between grass cutting and care is simple.