Tell us how our savings proposals impact you
Our budget
As a local authority, Midlothian Council is responsible for a range of public services – from educating children to emptying bins.
However, demand is rising and the cost of delivering services is more than our annual income. Like every local authority, Midlothian Council must increasingly do more with less, while continuing to look after its most vulnerable residents.
We have three main sources of funding although we also bring in money through charging for some services to residents, visitors and businesses:
- Scottish Government – General Revenue Grant and Non-Domestic Rate Grant
- Midlothian citizens – Council Tax income
- Council Balance Sheet – Use of Reserves
The council must by law deliver certain services, including education and social care, which together account for almost 74% of the spend. When it comes to capital costs, such as building schools and affordable homes, we must borrow money and repay it over a number of years.
This is where our money went last year:
More information - the reality
Our communities are facing enormous challenges. In Midlothian:
- We have the fastest growing population in Scotland, expected to rise by more than 30% by 2043 according to the National Records of Scotland.
- An independent study commissioned for the council in 2023 found 4,400 children - just under a quarter of children in Midlothian - were living in poverty.
- 8.3% of adults are very low paid, compared with Edinburgh and West Lothian and evidence suggests wages have slipped back further since 2019.
- 18.9% of the overall Midlothian population are over 65 while 17.7% are 14 and under, putting more pressure on council services such as education, health and social care.
The level of funding we receive from the Scottish Government cannot cover the services we currently provide. Although we’ve already made substantial changes to save money and work more efficiently, we need to do more.
More Information: where we can and cannot make savings
Some of the funding the council receives from the Scottish Government is “ring-fenced” - which means that it can only be used for certain services or projects. For example, if the council gets new funding to support health and social care, it can’t be diverted to pay for other services. Similarly, national policies, supported by the council, mean we need to maintain certain levels of spending on services like education, teacher numbers and other statutory services.
After these fixed costs are taken into account like debt charges and Public Private Partnership contractual payments, we are left with about a quarter of the council’s budget from which to make the savings we need without reducing the extent of statutory service provision.
In 2024/25, a quarter of our budget amounts to £76 million from a total expenditure of £304 million. That £76 million covers services including maintaining roads, libraries, parks, sport and leisure, customer services, non-statutory health and social care, non-statutory education and support for businesses.
Given the cost pressures on other public service like health, Scottish Government funding is unlikely to increase. Each local authority receives a share from a central pot based on population, school pupil numbers, road length, number of people on benefits, land area, number of people presenting as homeless, and so on.
Midlothian receives among the lowest funding in Scotland per person.
The council has a legal obligation to set a balanced budget, therefore we cannot avoid making difficult decisions we know will impact the people we serve.
That is why we are consulting.
More Information: actions required
We need to prioritise what services can be delivered, how and for whom. We therefore need to consider the social, economic, and environmental drivers, and assess the impact on people.
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Preventing harm – councils have a duty to protect children and adults who are experiencing, or who are at risk of, harm.
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Promoting the wellbeing of citizens – services such as housing can have a significant impact on the health and wellbeing of individuals and communities.
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Supporting those most in need – inequality exists in every society, and some people and some communities need more support and investment than others.
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Preventing demand wherever possible – spending needs to shift to preventative action e.g. in reducing homelessness.
More Information: what we are already doing to reduce our budget gap
Steps we have taken so far:
Last year councillors approved a new Transformation Blueprint and supporting Medium Term Financial Strategy outlining the actions the council will take under five key themes:
- ‘Follow the money’
- 21st century workforce
- Workplaces of the future
- Income generation and commercialisation
- Multi-agency transformation
Following the money
The council is ‘following the money’ by reviewing contracts, commissioned services and digital solutions to make sure they are the best value possible and will invest in preventative measures to support those most in need, including care-experienced children and young people.
21st century workforce
The 21st century workforce theme focuses on upskilling staff and implementing digital technologies fit for a future workforce.
Workplaces of the future
Better use will be made of council buildings and workplaces will be designed for the future. This will help the council make significant progress towards being carbon neutral by 2030. It will also be easier for local people to access services within their communities in ‘one stop hubs’ and/or online.
Income generation and commercialisation
Initiatives to generate income include selling advertising on council roundabouts and wrap-around holiday programmes for children. The newly-opened Alpine Coaster is among a package of offers as part of the Destination Hillend project that will bring in money to the council to help pay for services, once fully operational.
Multi-agency transformation
Meanwhile, continuing to take a more collaborative approach with partner agencies including the Police and NHS in a new formed Multi-Agency Transformation Management Group will make sure services are ‘joined up’ with a focus on early intervention and prevention.
Our priorities
Working with our community planning partners, our aim is to help people lead healthier, safer and successful lives. Our Wellbeing Economy will create a more equal Midlothian where the environment and our communities prosper.
To help us do this, the council and our community planning partners have approved the Single Midlothian Plan, with its focus on making sure:
- Individuals and communities have improved health and learning outcomes
- No child or household lives in poverty
- Significant progress is made towards net zero carbon emissions by 2030
Your views
The Single Midlothian Plan says what the council and its partners are committed to but its success relies on you - our citizens, communities and businesses - playing your part by telling us what is important to you.