PRESS RELEASE
03 December 2014
SIC sets a fully sustainable budget for 2015-16
Shetland Islands Council has approved a sustainable budget for 2015-16 – the first since the 1990’s.
Back in 2011-12, the Council withdrew £36 million from its reserves to support its spending. In 2015-16, that amount will be £6.9 million, which marks an 80% reduction over 3 years. This can be funded from the investment income generated by the reserves, which will maintain them for future generations to continue to benefit from. This has been achieved despite rising costs and significant reductions in government funding.
Under the Medium Term Financial Plan, which was agreed in September 2012, the Council recognised the critical need for the authority to get its spending back to sustainable levels, and this will be achieved next financial year.
Some key points:
- In 2015-16, Shetland’s public services will continue to be better funded than in any other part of Scotland.
- The Council is freezing the Council Tax for the eighth consecutive year, in line with the Concordat between local authorities and the Scottish Government. Shetland Islands Council continues to charge the 4th lowest level of Council Tax out of 32 local authorities.
- Since 2011-12 the Council has made £35 million of savings across all services, in line with the aims of the Medium Term Financial Plan.
- The SIC’s savings target for next financial year was £2.1 million; actual savings will be £3.3 million. Each directorate will be allowed to use any excess amount to reduce their savings target for the following year.
SIC Leader Gary Robinson: “When this Council first met in May, 2012, it seemed an almost impossible task to bring our spending down to affordable levels and balance the books once more. However, thanks to an enormous amount of work by staff at all levels and the efforts of elected members we can at last set a sustainable budget for the year ahead, and I commend them for their efforts.
“While we have made the necessary savings without significant impact on Shetland’s high quality services, I’d also like to thank the community for their forebearance during a period of necessary change.
“We must remember, however, that we will face more pressure in the years to come. The amount we are granted by the government to run our services will continue to fall, and our costs will inevitably rise. We’re already looking at how we plan our spending and services in the longer term, but it is critical that we continue to focus on keeping our budgets in check and living within our means.”