Comhairle nan Eilean Siar has successfully developed proposals for a balanced budget using a combination of service reductions, reserves, use of Crown Estate funding and an increase in Council Tax.

Current propsals include: 

• Council Tax Increase – 8%
• Additional Allocation of Crown Estate - £287,769
• Savings from Departmental Budgets - £1.1 million
• Use of Reserves - £2m

Last year the Cabinet Secretary for Finance, Shona Robison stated that Council Tax increases should be kept to a “minimum” this year, and that the Scottish Government’s proposed £1bn uplift in funding for Councils should prevent them from introducing any “large” tax increases.

 COSLA has estimated that the unrestricted uplift available to Councils is £289m. In a letter to the First Minister, the Comhairle 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 Islands Cost Crisis Emergency Fund, could be provided.

In a statement last month Councillor Paul Steele, leader of Comhairle nan Eilean Siar, said:  “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 continue to make difficult decisions and while we will always look to limit the impact these decisions have on the public, it is inevitable that their effect 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. In the absence of any likely change to the levels of Local Government funding, it is the view of the Comhairle that progressing public sector reform is the route to break this cycle, an approach which would bring many other benefits.”

The use of Crown Estate revenue in the budget proposals allows the Comhairle to maintain some non-statutory services such as evening bus services and rural swimming pools.

Members of the public can use the feedback form on the Comhairle’s website to give comment on the current budget proposals, discussed by the Comhairle’s Budget Board on 15 January.

All feedback received from the public will be used to inform this and future budget setting processes and shared with Members in advance of the Comhairle’s final Budget Meetings on 25 February.

Councillor Paul Steele, leader of Comhairle nan Eilean Siar, added: “Quite simply Comhairle nan Eilean Siar has not been given enough money to deliver services at their current level. The Comhairle has identified four options to close the deficit and achieve a balanced budget. These options are to use reserves, increase Council Tax, utilise Crown Estate Revenue and find yet more savings from our Services’ budgets.

“The Comhairle’s budgetary decisions will have an impact on our communities, and it is important that the public have an opportunity to view and comment on the budget proposals in advance of the final decisions. I would encourage you all to take the time to engage with this process.”