CASH-STRAPPED Inverclyde Council is facing a shortfall of more than £7 million to pay for vital services like schools and care for the elderly, according to its annual report.

The study by accountants KPMG found a predicted shortfall of £7.2 million between 2025 and 2027 - even with a hefty 7 per cent increase in council tax.

In their findings KPMG said: "The council faces increasingly difficult decisions in relation to spending priorities and coping with workforce capacity pressures, at the same time as communities are experiencing increased hardship due to the cost of living crisis.

"The underlying financial pressures remain, with an estimated funding gap of £7.2 million over 2025/27, after an assumed 7 per cent council tax increase in 2025/26."

There was further bad news with the report confirming the area's long-term population decline "driven by a falling birth rate and deaths outnumbering births".

At present 31 percent of people living in Inverclyde are over 60, four percent higher than the national average.

KPMG said Inverclyde's population has fallen by 3.8 per cent in the period from 2011 to 2022 - the second highest drop in Scotland.

Concerns in the report were also expressed about standards of living in Inverclyde, with almost one in four children living in poverty and more than one in five adults earning less than the living wage.

It added: "Inverclyde experiences higher levels of poverty and deprivation, with higher levels of child poverty, lower levels of economic activity and poorer health outcomes than the national average."

The 190-page report was considered at a special meeting of Inverclyde Council.

The auditors also revealed that the value of the council's assets fell by £55.6 million to £303m due to a £47m staff pension liability.

The report details the increased price of looking after the very young and the elderly.

Pre school nursery care per child rose from £12,958 per annum in 2022 to £14,104 last year

The hourly cost of providing carers for older people living at home jumped from £43.28 to £48.08.

Weekly residential care for people over 65 went from £622 to £733.

While the sum charged by KPMG for their audit of council accounts rose from £298,000 to £316,000.

Inverclyde Council were also hit with an increase in staff going off sick according to the audit.

Teachers absences were up from an average of 4.4 days to 6.8.

While sickness levels for other staff others rose from 8.8 days to 11.3.

The report, which covers the last financial year up to March 2024, said the council currently employs 4,494 people, including 71 apprentices, serving a population of of 78,340.

On the plus side, the council had a high council tax collection rate with more than 95 percent of households paying up.

Charges ranged from £953 to £3,502, with an average council tax bill of around £1400.

KPMG reported that Inverclyde was the finalist in two national Local Government of the Year awards and was the first council in Scotland to provide free school meals to all primary schools.

Their report also highlighted the £20m ongoing investment to regenerate Greenock town centre in addition to a further £20m provided from the UK Levelling Up fund.

It said the new Ocean Terminal cruise ship visitor centre in Greenock  has created more than 70 new jobs and is expected to deliver a £26m boost to the local and national economy.

There was also an increase from 21 per cent to 24 per cent of council contracts awarded to local businesses.

A programme to attract new staff resulted in an extra 94 young workers employed by the council. 

All of those newly employed were Inverclyde residents, and one in five of them were previously unemployed.

A £67m capital spending programme was also given the green light last year, of which £10m would be provided by the council, to refurbish schools, repair roads and upgrade street lighting.

The audit report said the council plans to bridge any future funding gaps through savings and the use of cash reserves, though no further details were given.