Budget gap cut
WESTERN Isles Council’s budget deficit for next year has been cut from £6.3m to £3.4m, following a new settlement with the Scottish Government.
WESTERN Isles Council’s budget deficit for next year has almost halved, from £6.3m to £3.4m, following an improved settlement with the Scottish Government, but its services still need to be ‘redesigned’.
Comhairle nan Eilean Siar’s original projections, based on the recent series of one year settlements from the Scottish Government, were that savings of up to £20m could be required over the term of the comhairle, including £6.3m in 2018/19.
On Wednesday the comhairle set its budget for 2018/19.
The leader of Comhairle nan Eilean Siar, councillor Roddie Mackay, said: ‘The comhairle faces challenging financial circumstances but thanks to prudent financial management over previous years we are not in as tight a situation as some others.
‘It is not an easy task but the comhairle is committed to continue to effectively manage our finances while delivering high quality services for our communities.
‘Our budget sets out a different approach to address the underlying deficit facing the comhairle. Rather than continuing to salami slice services we want to look at different ways of delivering them to try and secure as many of the same outcomes within the constraints of the resources available.’
A spokesperson added: ‘The funding offer from the Scottish Government to councils requires that a council tax increase is no more than three per cent. While sanction free, the Scottish Government has indicated that not accepting the offer will lead to a less favourable settlement for councils.
‘The comhairle has seen an 18 per cent fall in funding over recent years, the second highest drop in Scotland and it is no longer sustainable to squeeze individual service budgets. Instead the budget board recommended that the comhairle agree a programme of service redesign that will, over the term, realise the necessary savings.
‘The comhairle has already agreed to seek one per cent efficiency savings from across the comhairle in each of the next five years and this, together with loan charge savings of £1.2m, reduces the deficit to £4.4m. The announcement of £1.2m of additional funding last week is welcome and though some £0.2m of this will be needed for pay awards it brings the projected deficit to £3.4m - within the balances of £3.8m the comhairle has earmarked for the budget.
‘At its budget meeting, the comhairle approved the order in which services will be reviewed and the year the reviews will begin.
‘It is anticipated a service redesign will produce £2m of savings for 2018/19. The process of redesign will include consultation on how the service outcomes can most appropriately be delivered.’