COUNCIL bosses have tentatively closed the budget gap for the next year to avoid further cuts after finding nearly £20million to spare.

In November 2019, the gap was expected to be £5.6m for 2020/21, £10.6m in 2021/22 and £16.9m in 2022/23.

But finance chiefs did a detailed review of their existing loans dating back to 1996 and looked at re-mortgaging options and any over-payments made. Now the council is left with £19.8m that can be put in reserve to close future funding gaps.

Another £9m was found from reviewing loans connected to the housing revenue account, creating a second reserve that will figure into calculations for setting rents in March.

The total cash found, while large, would only cover the next two years and not offer any cushion beyond that when all financial forecasts at every level of British governments is for continued money troubles.

Instead, West Dunbartonshire Council is proposing to spread it out over 10 years to reduce payments on loan prinicipals and close funding gaps.

Separate sales of land such as Garshake and the former Our Lady and St Patrick’s High will generate more than £9m for the council. But that too is being spread out – part will be used to close the budget gap, but much will go to repaying the council’s debt.

There are also unknowns for the council, particularly the Scottish Government funding, to be announced next month, and the UK’s budget in March.

WDC will also need to set aside £2m for potential claims of historic child abuse, council papers state.

Meanwhile, the European Union has halted payment to the Scottish Government under the European Social Fund (ESF). Projects through the council under the ESF are at risk of not being paid and that could leave a £2.3m hole for the council. Finance bosses hope that factor can still be resolved.

The council now is left with a balanced budget for 2020/21, almost £6m to find the year after and £12.7m by 2022/23.

Councillor Ian Dickson, convener of corporate services. said: “It has taken more than a year of lobbying Audit Scotland by the Scottish Government, council officers and administrations across Scotland, and we are finally able to release extra money from further loan restructuring that we can use to protect council services. It’s important that we do this in a sustainable way, as wWhile I intend to propose another no cuts budget in March, we need to stay alert to very significant gaps in future years’ funding. The benefit from loan restructuring is a one off pot of money and we must spend it wisely.

“COSLA is still negotiating with the Scottish Government, and a cross party delegation from West Dunbartonshire Council will be meeting the Public Finance Minister on February 6. I will be making sure that the Scottish Government know the positive impact a good Local Government core settlement will have on public services and how it will improve the lives of our citizens.”

Opposition councillor Martin Rooney welcomed the balanced budget, but added “there is a catch”, highlighting that council tax will rise by three per cent and charges will rise by four per cent. He also said £900,000 of management savings will result in a loss of more than 22 full-time equivalent jobs.

Cllr Rooney said: “So it looks like we could at least start off the next decade without having any more Tory and SNP austerity cuts.”