North Ayrshire's head of finance has warned that huge challenges face the community in the coming years.

Mark Boyd's report on the local authority's budget says the use of the council's reserves to fund services over the next three years is "not sustainable, but necessary".

The report says there are estimated net budget shortfalls of £17 million for the two financial years from 2025-27.

This position, however, incorporates the planned use of reserves in all three of the next financial years.

Mr Boyd's report was considered by councillors as they agreed the authority's spending plans for 2024-25 - using reserves to plug a £16 million shortfall and to cover a freeze in council tax rates.

Mr Boyd said: “The use of reserves is not a sustainable solution, but necessary due to the scale of the budget challenges.

“The approach to the budget programme continues to focus on minimising the impact on communities, council services, and the workforce, whilst delivering more financial efficiencies through the council’s Sustainable Change programme.

“It is recognised that this approach will continue to get more challenging over the medium-term.”

Council fees face increases in 2025-26 and 2026-27. However this position will be reviewed in advance of the 2025-26 budget.

Mr Boyd added: “The medium-term financial plan for 2024-25 to 2026-27 builds on last year’s plan and the analysis reflected in the medium-term financial outlook. 

“The proposals in this report provide a balanced budget for 2024-25, although it should be noted that this required a planned use of £5m reserves, with indicative net funding gaps remaining for 2025-26 and 2026-27 of £8.141m and £8.558m respectively. 

“This position incorporates the full year effect of proposed savings in 2024-25 and a planned use of reserves in 2025/26 and £3.500m in 2026/27 and continues to present a significant challenge to the sustainability of the council’s finances.”