Comhairle nan Eilean Siar warns it faces a £4 million budget shortfall in its finances.
A Council Tax hike is likely, cuts to service budgets are proposed while the council is also set to dig into its own limited reserves to help balance the books for its 2025 budget.
Despite an increase in money from government, the Comhairle’s uncommitted additional
funding - after considering public sector pay awards, directed spend on health and
social care and other government commitments - gives an increase of less than 1%
of the total settlement.
This figure is below the current rate of inflation and leaves the Comhairle once again in a “challenging” financial position.
Councillors will make decisions on what services to cut, fees to increase and how to make savings.
That process begins later this month with a meeting of the Budget and Strategy Board, and end when the Comhairle meets to vote over its budget in late February.
The Comhairle is pressing the Scottish Government for the necessary finances to support its priority construction project, a new school and leisure facilities for Barra and Vatersay.
The Comhairle has also requested additional funding for the inter-island plane service
between Uist and Stornoway, pointing out the Scottish Government provided a £20 million
commitment to support inter-island travel in Orkney and Shetland.
Last year the Cabinet Secretary for Finance, Shona Robison claimed that council tax increases should be kept to a "minimum" this year, and that a proposed £1 billion uplift in funding for councils should prevent them from introducing any "large" tax increases.
In a letter to the First Minister the Comhairle has made clear that the best means by which the Comhairle could consider limiting an increase in Council Tax would be if additional funding, perhaps through the Island Councils Cost of Living Fund, could be provided.
Paul Steele, Leader of Comhairle nan Eilean Siar said: “While increases in funding are much needed and are very welcome the additional uncommitted funding that has been awarded to Comhairle nan Eilean Siar is again simply not enough to deliver our services to the public at their current level.
“I have written to the First Minister and Finance Secretary to seek assurances on the Comhairle’s overall financial position and alongside COSLA colleagues will continue to make the case for additional resources.
“I would like to stress that decisions to raise Council Tax or reduce services will not be taken lightly.
“The current financial position of the Comhairle means that we must make difficult decisions and while we will always look to limit the impact budgetary decisions have on the public it is inevitable that they will be felt throughout our communities.
“As we work on setting this year’s budget we will continue to make the case for change and public sector reform.
“The Comhairle cannot continue to cut back services year on year and the people of the Western Isles cannot continue to be asked to pay more and receive less. It is the view of the Comhairle that progressing public sector reform is the route to break this cycle.”
Council tax rise and service cuts to be considered as Comhairle tackles £4 million deficit
16 January 2025
