MORAY Council could go bust by September 2018, its leader has warned.
The grim picture was painted by Cllr Stewart Cree as he presented a one-year budget to the full council on Wednesday.
He said: "The cumulative effect of grant reductions from the Scottish Government and savings made in this budget will mean that we have to take £7.6 million from our reserves this year to continue to provide the services we are committed to".
He said that would leave enough in the reserves to last until autumn 2018.
Council Tax has been increased by three per cent. Moray Council is one of nine across Scotland which expects to exhaust their resources in the next three years.
Opposition SNP group leader Councillor Gary Coull said: "Fundamentally budgeting is about long-term stewardship of the council’s finances and not lurching from year to year with no strategic direction."
For more on this story see Friday’s Banffshire Herald.