Job cuts 'inevitable' warns South Ayrshire Council

South Ayrshire Council says job cuts at the local authority are inevitable over the next few years after revealing it faces a £8.37m budget gap for 2026-27.

A report by chief financial officer Tim Baulk said half of all council spending was pay-related, and a reduction in the workforce would be central to balancing the books.

This was despite the council making progress in bringing down the potential shortfall, which stood at £15.3m in November 2025.

In his report to Thursday's meeting of the full council, Baulk also warned of a potential shortfall of up to £28.6m over the next five years.

The budget-setting meeting will see councillors seek to balance finances through cuts, savings and increases to charges and council tax.

The reduction from £15.3m to £8.37m is a result of updated Scottish government funding figures, capital programme changes and revised financial assumptions.

South Ayrshire Council will receive a total of £313.5m in revenue funding from the government, about £5.7m more than previously anticipated.

However, pressures remain, with the new report warning an additional £771,000 would be required for wages.

The report also said change to the workforce was "inevitably" key to balancing the finances.

The council's updated medium-term financial plan forecasts a cumulative five-year funding gap ranging from £20.6m to £28.6m, depending on future council tax decisions.

The plan assumes Scottish government funding would remain "flat" in cash terms over the period, representing a real-terms reduction once inflation was taken into account.

Councillors will be asked to agree that a new workforce plan includes a targeted percentage reduction in the council's workforce, alongside a "structured approach" to managing those changes over the lifetime of the plan.

The report also warned South Ayrshire Council's use of reserves to blunt the impact of budget shortfalls could not continue.

Story by Local Democracy reporter Kevin Dyson.