COUNCIL bosses have tentatively closed the budget gap for the next year to avoid further cuts after finding nearly £20million.

In November 2019, the funding gap was expected to be £5.6m for 2020/21, £10.6m in 2021/22 and £16.9m in 2022/23.

But finance chiefs carried out a detailed review of their existing loans dating back to 1996 and looked at re-mortgaging options and any over-payments made.

Now the council have found £19.8m that can be put in reserve to close future funding gaps.

Another £9m was found from reviewing loans connected to the housing revenue account, creating a second reserve that will figure in calculations for setting rents in March.

The total cash found, while large, would only cover the next two years and not offer any cushion beyond then.

Instead, West Dunbartonshire Council is proposing to spread it out over 10 years to reduce payments on loan principals and close funding gaps.

Separate sales of land such as Garshake and the former Our Lady and St Patrick’s High will generate more than £9m for the council.

There are also unknowns for the council, particularly the Scottish Government funding, which will be announced next month, and the UK’s budget which has been delayed until March.

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WDC will also need to set aside £2m for potential claims of historic child abuse, council papers state.

Meanwhile, the European Union has halted payment to the Scottish Government under the European Social Fund (ESF).

Projects through the council under the ESF are at risk of not being paid and that could leave a £2.3m hole for the council.

The council has been left with a balanced budget for 2020/21, almost £6m to find the year after, and £12.7m by 2022/23.

Councillor Ian Dickson, convener of corporate services, said: “Whilst I intend to propose another no-cuts budget in March, we need to stay alert to very significant gaps in future years’ funding.

“The benefit from loan restructuring is a one-off pot of money and we must spend it wisely.”

Opposition councillor Martin Rooney welcomed the balanced budget, but added “there is a catch”, highlighting that council tax will rise by three per cent and charges will rise by four per cent.

He also said £900,000 of management savings will result in a loss of more than 22 full-time equivalent jobs.

However, Cllr Rooney said: “It looks like we could at least start off the next decade without having any more Tory and SNP austerity cuts.”