Soaring gas bills will see Falkirk Council overspend by more than £1m on energy alone
25.08.2022 - 19:47
/ dailyrecord.co.uk
A 153 per cent hike in the cost of gas and 30 per cent for electricity will leave Falkirk Council once again looking for cuts to balance its budget.
Although prices rises for gas and electricity had been factored in to February's budget for this year, the scale of the increases mean Falkirk is now facing a £1.4million overspend on energy alone.
However, members of Falkirk Council's executive heard this was just one of the pressures on council services as the costs for contractors and suppliers are also starting to soar.
Read more: Falkirk Council agrees to speed up £2 million spend on electric vehicles
The council could also be facing a bigger bill than anticipated for staffing costs. Falkirk had budgeted for an increase of 2.5 per cent in pay - but that has already been soundly rejected by trade unions and council waste workers are now on strike.
The Scottish Government has promised £140 million to help councils foot the bill of a wage increase but that would only cover a 3.5 per cent rise, leaving councils to meet the rest. The report to councillors stated that a 0.5 per cent increase in the pay award will cost the council around £1.5 million, though this figure includes teachers.
Another area particularly under pressure is children's social work, partly due to a national shortage of foster carers.
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"Fundamentally, it's going to cost us a lot more to deliver the services we had planned than we had budgeted for," chief finance officer Amanda Templeman told