The first of the council’s budget consultation meetings takes place tonight at 7pm in Clydeview Academy.

These meetings are your chance to find out more about the financial challenges facing the council and the possible budget savings, as well as having your say on what our priorities should be.

I hope you will take the opportunity to attend one of the meetings and participate in the online consultation at www.inverclyde.gov.uk/council-and-government/yoursay. Council officers and elected members are anxiously waiting on details of both the UK and Scottish Government’s spending plans for next financial year, 2016/17. The Chancellor George Osborne was due to announce his plans today with the Finance Secretary John Swinney revealing his proposals on 16 December.

Informed speculation suggests the Scottish Government will receive a similar amount in cash terms from the UK Government next year as it was allocated this year. Councils however have been anticipating we will receive a cash reduction of around 1.6 per cent from the Scottish Government, as they are likely to increase spending on health at the expense of other parts of the Scottish public sector.

All the signs are the reduction for local government will be even greater than most councils were expecting.

COSLA has warned the governments in both Westminster and Holyrood that Scottish local government is facing half a billion pounds worth of spending pressures in the next financial year before any additional funding cuts are allowed for.

In Inverclyde’s case we have been planning for a cash reduction of £5.5m in Scottish Government grant over the next two years to reflect both a reduction in overall local government funding and a reduction in our share of the smaller cake due to our falling population. If we actually receive the same amount from the Scottish Government (i.e. a flat cash settlement) as we are receiving this financial year then there would be no need for any cuts or any increase in the Council Tax.

Currently, after allowing for the use of £2m of reserves, the council’s budget gap over the next two financial years is just over £800,000. Through the efforts of officers and the cross-party working group in identifying further efficiencies the gap has reduced significantly from that reported earlier this year.

We cannot be complacent though. Closing the remaining gap will involve hard decisions. Proposals like increasing charges, ending free swimming and reducing entitlement to school transport won’t be popular.

Neither of course will be the alternative of increasing the Council Tax. At the end of the day services have to be paid for.

The choices are to fund them out of taxation, charge for them separately or don’t provide them at all. The outlook for future years is likely to be even more challenging if the Scottish Government continues to reduce our funding. Further cuts to services and jobs – on top of the 500 we have lost since 2009 – will be inevitable. The new council elected in 2017 will face some extremely difficult decisions and choices.