Warning jobs may have to go as Falkirk Council face impact of sluggish economy

dailyrecord.co.uk:

High interest rates and low economic growth have left the outlook for Falkirk Council 's finances bleak, with councillors warned this week that jobs look likely to go.

At next week's full council meeting on Wednesday, councillors will see an update on Falkirk's overall financial position in a treasury management report that highlights how unlikely it is that the council will get any extra government cash this year.Demand for council services is continuing to grow as the cost-of-living crisis continues to hit people hard but chief finance officer Amanda Templeman told councillors that it is looking likely that public spending will be curbed further as the economy remains sluggish. Read more: Disabled people in Falkirk facing charges for Shopmobility services "The UK economy remains fragile, there was little growth for 2023 and indeed the Office of National Statistics has estimated there will be no growth for the third quarter in 2023.

In addition, growth is expected to remain low in 2024," she told members of Falkirk Council's executive last week."The UK economy remains in a very difficult position and there is a view that the UK must reduce public sector spending and clearly that will impact on our funding."And with interest rates remaining stubbornly high, the Public Works Loan Board - which funds most council borrowing - is forecast to remain above five per cent until 2025.Much of that borrowing is for the council's housebuilding programme, so any reduction would have a major impact at a time when homelessness is also increasing.However, the Scottish Government announced in May it is also facing a budget gap, forecast to be around £1 billion, so Falkirk is not expecting much more than flat cash when Holyrood