With elected members set to debate and decide on budgets for 2023/24 in a few weeks’ time, the Council is beginning a community conversation to highlight the particular challenges for the year ahead.
The fine detail of the annual grant settlement from the Scottish Government has yet to be calculated, but we do know that it will not cover the services we currently provide to our community. That settlement hasn’t increased in line with inflation for a number of years now, so essentially represents a cut in funding.
Every year the SIC has had to find savings and dip into its reserves to help balance its budget. We are committed to keeping those reserves sustainable, but to do that the Council will have to look at changing how it works, and what it does.
Council Leader Emma Macdonald: “We face the same problems as other local authorities, but there are additional issues which amplify their impact here in Shetland. We have an ageing population, which puts increasing pressure on services. Our infrastructure, such as ferries and roads, needs more and more maintenance, or replacement. As every householder will appreciate, with inflation at 10.5% our costs for essential materials such as fuel and food are extremely high, further compounded by our location. We’re still dealing with the impact of Covid, and Brexit – the list goes on.
“There are a whole host of challenges for us as a Council, as elected members, and as a community, which we cannot ignore and which we will have to deal with in order to work through the next few years, and we will have to work very closely with all our partner organisations.
“Council members will ultimately make decisions on the budget for the years ahead, but we know that decisions taken at a high level will have a myriad of effects, right across what we do. It’s our task to share that information as we consider the potential changes in the years ahead.
“We’ve initially published a document outlining the current situation, which you can find on our website, and will be providing further information in the coming weeks and months, as well as giving folk an opportunity to share their thoughts.”