IN THIS, unquestionably the most important council meeting of the year, the task of budget setting has perhaps never been more difficult. I would like to thank Jim Lamond, Sarah Fortune and all other council officials who have helped us in the process.

We have attempted to embrace the issues and work towards a balanced budget. In current circumstances, this can never be all things to all men; however, a budget we must have.

In doing so, we considered what the council must deliver, should deliver, could, might and regrettably simply cannot deliver.

The council can only spend what it receives, principally the Revenue Support Grant and the council tax it raises – a common misconception being that everything is paid for by council tax; in fact it contributes less than a quarter of the running costs, not even meeting the 38 per cent of the total spent on education alone.

With the capital spend limited, for good reason, by prudential borrowing limits, as the burden of debt charges has to be accommodated within the available spend, there is simply no magic printing press for new money, and indeed a modest ceiling on borrowings.

The use of reserves is the strongest signal that the council is running on empty. We are in the real world and it pains to see these depleted. We can argue that these should be kept for a rainy day; perhaps it is already pouring.

The council is well practised in adapting, re-evaluating and prioritising. However, this must continue. There can be no sacred cows.

It is never a bad thing to work within a budget; turning disadvantage into advantage, challenging perceived wisdom and making informed choices. We are confident this will continue to be the case.

ELC has historically been a generous authority. We may, unfortunately, have to become accustomed to how council services individually and collectively are redefined.

The Conservative Group reluctantly accepts use of the 4.79 per cent council tax cap this year; however, we were not able to support a 5 per cent rise in the two following years. This should be the last resort after all remaining efficiencies and savings are explored.

The size of the reduction in core service provision in future years demonstrates what needs to be achieved before asking constituents to pay more than the current 3 per cent rise. The Conservatives believe this is achievable, although not easy, and efforts should continue in this direction.

We, the Conservative Group, are pleased that in order to support this budget, the recurring capital spend on roads would rise by nearly a third, from £5.7 to £7.5m per annum. Our vital infrastructure needs to be keep in the best condition possible – the old adage “a stitch in time saves nine”. Last year’s Beast from the East took its toll and we are delighted to be able to take a long-term view on this most important and strategic of matters. An increase of this magnitude should, over time, lead to a significantly lower number of roads requiring reactive repair.

The recently approved Council Asset Strategy and Management Plan is welcomed. Critically, the expediency of its execution is essential to the financial wellbeing of the council.

In conclusion, the harsh reality of the numbers in front of you is plain for all to see.

We are comfortable in supporting this budget. The current single year Revenue Support Grant settlement has made for an almost impossible job in what is, in the extreme, not a discrete one-year task. The Conservative Group had a responsibility to help find a way to support a budget that, in today’s circumstances, is workable, constructive and balanced.

Local authorities are being starved of cash in what is a complex game of higher-level politics. Essential service have to be maintained. Councils are pawns in the SNP minority government’s independence game. Today, you see the impact this has on East Lothian.