Response to the Accounts Commission – Best Value Audit report “Shetland facing £134m budget gap”

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A reponse to the Accounts Commissions Best Value Audit report from Shetland Islands Council leader Emma Mcdonald.

Emma Macdonald, Leader – Shetland Islands Council, said: 

“We welcome this report, which recognises that our services generally perform very well, compare favourably to national averages, and have some of the highest levels of public satisfaction in Scotland.   The report also highlights that we have a clear vision and priorities, strong partnerships and good engagement with the public about our Corporate Plan and our budget.   

“The gap between the funding we receive and what services we are expected to deliver is significant – and it is an unsustainable situation.  Despite the extremely challenging financial environment in which we operate, difficult decisions need to be made.  We are determined to ensure the council addresses its unsustainable use of reserves, whilst innovating and collaborating to address our population challenges, reduce inequalities, and sustaining and growing our economy.

“As our working age population reduces, we know that digital transformation is essential to being increasingly efficient and sustaining service delivery.  We’re ensuring there is a clear focus on this, and our Change Programme is moving ahead.

“Finally, I would like to take this opportunity to thank all council employees for their hard work which these findings are testament to.   We know that it is their commitment that means that we maintain high-quality services for the community we serve when facing staffing and financial pressures.

“The full Accounts Commission report will be considered by elected members at an upcoming meeting of Shetland Islands Council.”

A copy of the Best Value Audit Report can be found on the Audit Scotland website

Published: 5th March 2026