Significant challenges remain as North Ayrshire Council battles to deliver a balanced budget amid increasing financial worries – with jobs and local services potentially at risk.

National council leaders have warned there will be job cuts as a result of last month's Scottish Government financial settlement for local authorities.

The North Ayrshire Council revenue budget will have a deficit of around £16million, despite funding being given to support the Scottish Government's planned council tax freeze.

A spokesperson for North Ayrshire Council said: "We are still working through the details of the financial settlement, but it is recognised that significant challenges remain to deliver a balanced budget in North Ayrshire, especially as we continue to deal with increasing costs that have been impacted by inflation.

"The initial indication from the settlement is that we are looking at a revenue budget deficit of around £16m for 2024-25.

"This is the anticipated position after we receive funding from the Scottish Government to support a council tax freeze.

"The Scottish Government have confirmed the funding equates to what would have been a 5% increase. This funding has still to be received.

"We will continue to work with COSLA on budget matters ahead of our meeting in February when elected members will consider our expenditure plans and funding as part of the 2024-25 budget process."

COSLA leaders described the draft budget as not only leaving councils at real and significant financial risk for the coming year but, as it stands, it will mean cuts in every community in Scotland and job losses across Scottish local government.

Following a full meeting of council leaders, COSLA said it was calling for urgent discussions with the Scottish Government to ensure a meaningful negotiation on the budget takes place before the final version is presented to parliament.

Councillor Shona Morrison, president of COSLA, said: "COSLA's initial analysis shows a real terms cut to our revenue and capital spending power which will leave council services at breaking point, with some having to stop altogether.

"The budget in its current form could result in service cuts, job losses and an inevitable shift to providing statutory services only. This means potentially losing libraries, leisure centres and all the things that improve our lives."