Tayside’s three councils could face having to plug an additional £7 million funding gap – as a lack of school meals uptake is contributing to a budget black hole.
The cash-strapped authorities – who are already predicting significant budget cuts next year – are being warned they may be liable for covering the shortfall at Tayside Contracts.
The arm’s-length body runs services like school catering and roads maintenance on behalf of the councils in Dundee, Angus and Perth and Kinross.
A new report says Tayside Contracts is facing “significant” financial pressures – brought on by factors including lower-than-planned school meal uptake, the national staff pay award and inflation.
Under a “worst-case” scenario, the three Tayside councils could be left having to make up the £7m between them.
Why are school meals causing a budget shortfall?
Children and young people whose families are eligible for certain benefits, and all children in P1 to P5, can get school lunches free – though not all children eligible take up the offer.
That means that most P6-7 youngsters, and those in secondary schools, must pay for their meals.
According to a Tayside Contracts report from November, meal numbers have not returned to pre-Covid levels.
It says: “Budgeted meal numbers for 2022/23 were aspirational and contingent upon pupils returning to pre-pandemic dining behaviours.”
School meal uptake by region
- Angus: Although showing signs of picking up, nearly 75,000 fewer meals are being bought than expected. In primary schools, uptake is 20% below budget, with the figure rising to 32% in secondaries.
- Dundee: Primary school meal uptake is 20% below budget and 28% below in secondaries, though this has improved from previous months.
- Perth and Kinross: Meal uptake in primaries is 11% below what was expected and 5% in secondaries.
What is being done to improve school meal uptake?
Tayside Contracts says it is taking action to improve uptake – but this is likely to have an impact in the longer term.
Among those measures is the development of a school meals Instagram page in an attempt to engage with secondary pupils.
The organisation also says it is working with Dundee City Council and the NHS to support a soon-to-be-launched food and health teaching pack for schools.
A report to Perth and Kinross councillors this week said they may be liable for covering 34% of the potential £7m shortfall – about £2.4m.
SNP council leader Grant Laing told The Courier: “Tayside Contracts is not a private business and the figures are a part of a worst-case scenario.
“As we see, the cost of things are changing every day, like petrol. Because of this, we won’t know exactly how much the costs will be.
“Perth and Kinross Council are doing what we can to help to increase the number of school meals that are taken by pupils and are asking Tayside Contracts to look at what they can do to help things improve.”
Angus Conservative councillor Derek Wann says local authorities are already facing “tough choices” and fears further budget shortfalls will impact on residents.
He said: “We have to provide public services without having the resources to pay for them.
“It is obvious but unpalatable that Angus and the other Tayside councils are going to have to pick up the tab here.”
Dundee Lib Dem councillor Craig Duncan, who sits on the Tayside Contracts joint committee, is also concerned about the impact on public services.
He said: “With the ever-changing costs of utilities and fuel, it makes it tricky for councils to adapt to budget issues, and I feel that Holyrood and Westminster need to understand and be supportive of local government.”
Tayside’s councils will meet to set their budgets for 2023/24 early in the new year.
There have already been warnings of huge savings needing to be made, such as in Angus, which is facing a £51m black hole.
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