Highland Council is preparing to ask residents which services should be protected, where savings could be made and whether new sources of income should be considered as it confronts a £39.2 million budget shortfall.
The financial gap covers the next three years and comes on top of £32.8 million in savings and other budget measures already agreed for 2027/28 and 2028/29.
Councillors agreed on Thursday 29 October to launch a public engagement programme, giving communities an opportunity to influence decisions that could affect council services across the Highlands.
Rising costs, inflation and wider economic pressures are being blamed for the latest financial difficulties, with the council also warning that its future funding settlement from the Scottish Government could be lower than anticipated.
The authority intends to examine several options, including further efficiencies, changes to service delivery, additional income and possible tax measures.
Rather than simply asking residents whether they support particular cuts, the council will introduce an online budget simulator allowing people to explore the consequences of increasing or reducing spending in different areas.
Surveys will also be available for residents, community organisations and young people, alongside an online ideas board where suggestions can be submitted.
Opportunities to participate in person will be provided at locations throughout the Highlands.
Council Budget Review Group chairman Bill Lobban said the financial pressures facing local authorities remained significant.
“Ongoing global economic uncertainty, inflation and higher interest rates, continue to increase costs and place significant pressure on local government budgets.
“That makes it more important than ever that communities are involved in shaping the Council’s budget decisions.”
The consultation will begin in November, with discussions involving community councils, tenant representatives, business forums, third sector organisations and parent councils taking place from late November into December.
A second phase of engagement will follow in January and February 2027, before councillors consider the final budget on 4 March.
Corporate Resources Committee chairman Paul Oldham said Highland Council had already made considerable progress in addressing its financial difficulties.
He pointed out that the authority faced a £113 million budget gap in 2024 and had since introduced measures intended to improve its financial position.
However, the latest projections demonstrate that the challenge is far from over.
Oldham said:
“We have already identified £32.8 million savings over the next three years.
“However, rising costs and economic pressures mean further action is required to close the £39.2 million gap we face.”
The council has not yet identified a final package of measures to bridge the shortfall, meaning the consultation will take place before those decisions are made.
For residents and businesses, the process offers an opportunity to influence how the authority balances the competing demands of maintaining public services and controlling expenditure.
Details of the surveys, budget simulator and community engagement sessions will be published through the council’s website and Engage Highland platform.
With £39.2 million still to find, the choices facing councillors in March are unlikely to be straightforward.
