For Argyll

Only a few months into the financial year, rocketing fuel costs are blowing apart Argyll and Bute Council’s annual budgets. The 2008 - 2009 budget for vehicle fuel is about £1million yet on current costs alone, that budget wll be exceeded by 25% by the end of next March. Andrew Law, Director of Operational Services, adds that the current annual heating oil budget of £650,000 and annual gas budget of £282,000 are also expected now to overrun by around 10%. As costs continue to rise, the situation worsens progressively. Councillor Dick Walsh, Council Leader, pointed out that there is a surplus of £2 mllion more than expected in the General Fund so the Council may have some leeway in responding to this critical financial situation.