A £42 MILLION project to build two new schools to support East Lothian’s growing population will be “slowed” as part of measures to tackle the county’s budget black hole.

Councillors agreed on Tuesday to a range of mitigation measures proposed by officers to help ease the pressure of a £5m deficit in this year’s finances.

Among the moves agreed are the mothballing of some council offices and reduction in temperatures in those remaining open to 18 degrees to save energy costs.

A planned £1.5m refurbishment of Musselburgh’s Brunton Hall has been shelved in favour of a small £50,000-a-year budget for minor upgrades.

And plans for new primary schools to service the new town of Blindwells and housing at Craighall, in the west of the county, will be delayed to remove funding commitments from this year’s budget.

At a meeting of East Lothian Council, finance chiefs said that the decision to stall the schools would not have a major impact on their final completion – without ruling out any delays further down the line.

Highest risk

In a report to councillors, they said: “The pace of work to progress new schools at Blindwells and Craighall will be slowed, pending assurance over developer contributions for these schemes.

“The total estimated cost of these schemes combined is £42m, and expenditure of £1.25m has been incurred to date.”

Councillor Neil Gilbert asked for reassurance that the decision would not impact on families who were expecting to attend the new schools.

Ellie Dunnet, head of finance, told him: “The slowing of the financial burden will bring it into the next financial year.”

Last month, councillors agreed to let officers come up with plans to tackle the financial gaps in the local authority's budget after being told that the current pressures posed the highest risk the council had ever faced

A £2m underpayment in funding from the Scottish Government to cover a staff pay increase and £1.2m in additional energy costs for council buildings helped create an additional £5m budget gap this year.

'A level we cannot sustain'

Sarah Fortune, executive director of finance, told the meeting: “It is now very clear the scale of financial pressure has reached a level we simply cannot sustain.”

The detailed report to councillors outlined discussions with the Scottish Government to find flexibility over some ringfenced funding which could be reallocated, as well as cutting costs.

Among council buildings confirmed for temporary closure to save energy costs are two block of offices at the council’s John Muir House headquarters in Haddington which currently house SNP councillors, landscape and countryside teams, and amenity services.

They are expected to move into the main building, while the East Lothian Works offices on the town’s Lodge Street, which have been closed during the pandemic, will formally close.

Councillor Norman Hampshire, council leader, said that the moves were all vital to support the council as it tried to balance its books and keep public services going.

He said: “The challenges we are facing as a council are absolutely huge.”