Financial Strategy shows reduced budget gap for Falkirk Council
A new Financial Strategy to be considered by councillors on 1 October shows Falkirk Council has reduced its forecast budget gap but still faces difficult decisions to balance future budgets.
The report says the Council balanced its 2026/27 budget without using one-off funding to pay for everyday services. This marks an important step forward and has allowed more funding to be focused on long-term priorities.
The improved position follows more than £46 million of savings expected to be delivered between 2022/23 and the end of 2026/27. The report also shows Falkirk no longer has the largest budget shortfall among Scottish councils when measured against the size of its General Fund budget, moving to 16th out of 30 in 2026/27.
Amanda Templeman, Chief Finance Officer, said:
We continue to face significant financial challenges and there are difficult decisions ahead. However, this strategy shows the progress that has been made in improving our financial position and reducing the scale of the budget gap we face.
"It's important that we recognise both sides of that picture. While we still have a funding gap to address, we've taken a significant step by balancing this year's budget without relying on one-off reserves to fund day-to-day services.
"We hope councillors will recognise that progress and support continued investment in the services and infrastructure local communities rely on.
The strategy also uses planning assumptions to show how future budgets could be balanced, including through a range of Council Tax increases. The core Strategy is modelled on a 7% Council Tax increase for revenue and a further 1.5% increase in Council Tax for capital investment giving a total Council Tax increase of 8.5%.
However, Councillors are not being asked to take decisions on Council Tax at this point as these decisions cannot be taken until after the Scottish Government budget is announced in December.
If 1.5% of Council Tax is used to support investment, a further £15.1 million could be directed towards roads, schools and community facilities in future years. This would include:
- £4.05 million for road resurfacing
- £5 million for school improvements
- Almost £2 million for street lighting upgrades
- £1 million for sports pitch improvements
- £1 million for ICT and cyber security improvements
- £700,000 for vehicle replacement
- Investment in parks, play areas and other community assets
Major investment projects are continuing across the Falkirk area. Around £25 million of additional investment was approved through the 2026/27 budget, while £30.4 million of service concession funding has been committed to projects including the Town Hall, sports facilities and other community assets.
Any additional funding identified through the strategy would be in addition to this existing programme.
Residents will be able to have their say on future spending priorities when the Council launches its annual budget consultation on 6 October.