COUNCIL finance officers will have to pluck figures "out of thin air" after the Autumn Budget was scrapped by the UK Treasury.

Elected members last week heard how the significant additional costs of coronavirus, along a reduction in income, have led to a £2.5million overspend in general revenue this year so far, according to figures from June.

Plans were agreed in a bid to rectify the financial position at last Thursday's, September 24, special council meeting.

However, the financial woes are further compounded by uncertainty caused by Westminster, said elected members.

The meeting was held just a day after the treasury scrapped plans for an Autumn Budget "due to the pandemic".

In a statement, the treasury said that "now is not the right time to outline long-term plans".

That is certainly at odds with Wee County hopes to set a balanced council budget for 2021-22 in February next year.

Council leader Ellen Forson told the virtual Kilncraigs chamber last week: "The UK chancellor yesterday announced out of the blue that they don't intend to hold a budget this year, which not only provides uncertainty for the Scottish Government, it provides huge uncertainty for local authorities across Scotland – and particularly, our local authority.

"It's now that we start looking at our budget for next year – and with absolutely no idea of what's coming.

"It's going to be an impossible, plucking figures out of thin air situation."

Much of the council's current overspend comes from demand-led childcare in social services, to the tune of around £2m.

This prompted Labour leader Cllr Dave Clark to accuse Cllr Graham Lindsay, who holds the service portfolio, of taking his "eye off the ball".

However, he added: "Remarkably, we are supportive of the paper.

"We have to deal with the reality that we are £2.5m behind."

Some of the overspend will be offset by reserves while a recovery plan will be developed for social care "and implemented urgently".

A spending restraint across all services has also been implemented with immediate effect.

Cllr Lindsay said: "The demands are well upon this council and to be using this forum to make political and personal comments is entirely unhelpful."

He added: "We are working through difficult times, the service is going through significant difficult challenges and the demand on the service is absolutely incredible.

"But there is no doubt we need to keep our eye on the ball."

Following the meeting, Cllr Forson added: "Our transformation plans under the Be the Future programme will help to ensure that we continue to deliver the vital services that our residents rely on, while continuing to introduce new and more effective ways of working that will benefit all our communities.

"However, there is no doubt that the uncertainly over budget setting processes, which usually begins with the UK Government setting out its own spending plans, will make it difficult for Clackmannanshire Council to develop its own plans and I will raise this on behalf of the council with COSLA."