Cash crisis facing West Lothian Council is now 'unprecedented'

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Council bosses are warning the financial crisis facing local authorities is “unprecedented”.

An update from the council’s Head of Finance confirmed this week that the continuing financial crisis facing councils is of a magnitude never experienced before, and that urgent action is needed to address the issues.

The vast majority of the overspend has been caused due to increasing and unprecedented demand for key services - mainly within Social Policy and Housing Services.

West Lothian’s older population is growing and continues to grow at a faster rate than the Scottish average.

However, there is also significant cost pressures within complex services for children.

The increasing demand for services within these areas isn’t expected to stop, as there will be a continued increase in demand for housing and social care services.

This latest update confirms that West Lothian Council has a substantial overspend this year (2024/25) of over £8.1 million which means that more savings are now required to allow the council to balance its budget.

By 2028 West Lothian Council will have had to make budget savings by almost £0.2 billion mainly due to “insufficient levels of funding” to local government from the Scottish Government and increasing costs.

Kenneth Ribbons, the council’s Interim Chief Financial Officer said: “The current position is not sustainable and councils across the country face very similar challenges.

“We have never experienced a forecast budget position of this magnitude. Urgent measures are needed to address the situation so that we’re able to balance our budget.

“It is also important to identify other sources of income as a longer term option which would potentially generate additional funding to help protect local services.”

Urgent steps the council has already agreed include enhanced recruitment controls that are already in place but a recruitment freeze has been approved within many areas.

All non-essential spend will stop and a substantial number and wide range of further budget savings are being considered for this year and for future years.

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