Councillors debated East Lothian Council's mid-year financial report at the Cabinet meeting today (11 November 2008). The review of the second quarter of financial performance during 2008/09 provides an opportunity to assess the requirements of future service needs which play an important role in setting or adjusting budgets for subsequent years.

East Lothian Council's Depute Leader, Cllr Stuart Currie, said: “Local authorities, in common with the majority of public and private sector businesses, are currently experiencing a number of challenges during this difficult financial climate. It is vitally important that we have regular and thorough reviews of the Council's financial position to enable us to pinpoint areas of concern and to put in place measures to address any difficulties. I am particularly heartened that the current position mid-way through the current financial year shows a surplus of £1.5 million, however the continued challenges of higher energy costs and the increased demands of both homelessness and adult social care services mean that we need to remain observant when balancing the needs, demands and resources of the council.”

The financial review highlighted the increasing energy costs faced by the council. The higher prices of both electricity and gas mean that the council faces a 50% increase on the current annual energy spend of £2.7m with an estimated increase of around £1.4m. The allocation of £1.5m from council reserves to the Adult Social Care budget agreed at the October Council meeting will assist the Community Services department to deliver services within available resources.