COUNCIL officials are facing a funding black hole of up to £40 million in the next four years, according to latest figures.

A sobering report report by chief financial officer Alan Puckrin has laid bare the extent of the money troubles facing the local authority.

The respected fiscal expert’s lowest estimate predicts a funding gap of just over £13.1m by 2020.

But depending on a variety of factors such as the level of Scottish Government funding, council tax income and costs, that figure could be as much as £37.4m.

Mr Puckrin will take the unusual step of delivering a presentation on the matter in public at Thursday’s full council meeting in the Municipal Buildings.

In his financial strategy update report, he said: “In line with audit recommendations...there are three different scenarios for the 2017/20 revenue funding gap based on different assumptions around government grant, income, inflation and budget pressures.

“This gives a range in funding shortfalls of between £13.1m to £37.4m.”

A partial budget has already been drawn up for the next financial year but officials will have to plug a gap of almost £3m by 2018 to balance the books.

Mr Puckrin said: “The council has a revenue funding gap over 2016/18 of £2.805m.

“It has been provisionally agreed to close this gap by a combination of a council tax increase and reserves.”

The report features a joint statement from retiring chief executive John Mundell and council leader Stephen McCabe, explaining the ‘challenges’ facing the local authority and the necessity to be ‘self financing’, including charging for services and exploiting funding on offer from organisations such as the Big Lottery.

There is also a warning of further ‘efficiencies’ and savings.

The statement says: “Given the difficult position the council faces on capital expenditure, it is essential that future capital expenditure proposals are largely self-financing through the release of other capital assets, as well as delivering efficiencies which will secure ongoing revenue savings.

“The council has also approved corporate policies to charging and income generation – including maximising external funding from sources such as the various lottery funds to supplement existing resources and support service delivery.”

A reduction in the Scottish Government block grant, the nine-year council tax freeze, increasing staff costs and financial pressures of things such as additional child care provision are among a variety of reasons cited for the financial challenges.

In their statement, Mr Mundell and Mr McCabe said: “This financial strategy is key to the future success of the council. It is about making sure we have sufficient resources in place when required to deliver the outcomes we realistically can achieve for the communities of Inverclyde.”