Highland council maintains no redundancy policy by hard vacancy management
27th February 2026
For the 2025/26 and 2026/27 budget periods, Highland Council has avoided mass redundancies, instead managing staff reductions through vacancy management and redeployment.
Staff Reduction Levels & Strategy
Vacancy Management: The primary method for reducing staff levels is "non-replacement"—leaving posts unfilled when staff leave or retire.
Targeted FTE Reductions: Previous budget cycles identified a notional impact of approximately 81 Full-Time Equivalent (FTE) posts through general efficiency savings.
Senior Management Restructure: The senior management team was reduced from seven to four members as part of corporate restructuring.
No Compulsory Redundancy Policy: The council continues to operate a policy where compulsory redundancies are avoided whenever possible.
Financial Context for 2025-2027
The council is managing a multi-year budget gap through a mixture of savings, income generation, and workforce planning:
2025/26 Budget: The council agreed to a 7% increase in Council Tax (5% to balance the budget and 2% for capital investment) and identified £19.472 million in savings for the year.
2026/27 Forecast: As of February 2026, the council is forecasting a budget gap of £16.3 million.
Workforce Challenges: A critical factor in staff levels is the ageing workforce; approximately 44% of staff are aged 50 or over, making natural attrition (rather than active cuts) a significant driver of staff reduction.