Orkney council faces ‘significant’ £27m funding gap

Orkney Islands Council faces a “significant” funding gap of £27 million over the next four years, auditors have found.

The Accounts Commission said the local authority was delivering high-quality services, but it must plan ahead for a financially sustainable future. Serving around 22,000 people, Orkney Islands Council was noted to have relatively high costs and difficulty in recruiting and retaining staff.

Acommission report said the council had a “clear strategic direction”, but it needed more urgency in its managing of capital projects.

Commission chairman Ronnie Hinds said: “Orkney Islands Council benefits massively from its rich natural resources and the legacy of its significant strategic reserve fund, with money available to benefit the Orkney Islands and its local people.

“But facing a significant funding gap, the council needs to face reality and halt the unplanned depletion of reserves. We need to see a robust plan delivered this year on how reserves will be used, to achieve lasting changes for local communities and future generations.

“A vital part of this will be continuing consultation with island communities.”

Conservative islands spokesman Jamie Halcro Johnston said: “Orkney Islands Council is not alone in facing significant challenges, after years of systemic underfunding by an increasingly authoritarian SNP government.

““Orkney is lucky to have considerable natural resources and an enterprising and energetic population, but the shortfall as a result of the SNP’S economic mismanagement remains a serious concern.”