Cash-strapped Perth and Kinross Council has warned of “significant” job cuts as it faces a £28 million funding gap over the next three years.
A sobering update on PKC’s capital and revenue budgets – going before councillors next week – states the shape and size of the council “will have to change”.
Every council service looks set to be affected by a reduction in the local authority’s workforce.
Councillors will have a significant challenge ahead of them when they meet to set next year’s budget on March 1, 2023.
In the meantime an update on PKC’s financial position – approved by PKC’s head of finance Stewart Mackenzie and chief operating officer Karen Donaldson – will go before councillors on Wednesday.
Unprecedented pressure
Councillors will meet for the last time this year on December 21 but the financial update is somewhat lacking in Christmas cheer.
The report states: “In common with all Scottish local authorities and the wider public sector, Perth and Kinross Council’s budget is under unprecedented pressure reflecting the combined impact of historically high levels of inflation, continued financial constraint and the growing need for its services.”
As a result the council will need to make changes including reducing its payroll.
It states: “The shape and size of the council will have to change to meet the current financial challenges.
“This includes a reduction in the council’s workforce. While no decisions have been taken yet, the number will be significant, and the impact will be felt across the whole council.”
Staff may not be replaced
No figures or details have been provided.
However, the report says “workforce changes will continue to be mitigated by applying a positive and proactive approach”.
Measures include not replacing members of staff who leave and restructuring: “removing vacant posts” and “management structures”.
The council has pledged to help those impacted: “The council will support people affected through workforce change.”
Council tax rise
PKC’s transformation and change strategy – agreed in June 2022 – sets out a five-year plan for reshaping how PKC works with communities, partners and across Perth and Kinross.
The first part of this will see “the consolidation of some areas of work to improve the effectiveness and efficiency of how the council works”.
PKC’s leadership structure will be reviewed as part of this programme.
The report states: “This work is ongoing and the council is committed to working with trade unions and employees to ensure that it optimises their employment as far as reasonably practical.”
A further council tax increase – in addition to the three per cent rise already budgeted for – could be facing Perth and Kinross residents.
The grim report concludes: “Challenging and difficult decisions will be required in relation to budget reductions and council tax strategy.”
