Council faced with ‘challenging position’ after budget settlement

The council is poised for yet more financial belt tightening after elected members accepted a reduced local government settlement for 2018/19.

A report before councillors at a special full council meeting today underlined the “extremely challenging” position which lies ahead for the authority.

Shetland Islands Council has forecast a worrying £20 million funding gap between income and expenditure by 2022, and warns the shortfall will have to be addressed through “difficult choices and difficult decisions”.

The revenue funding allocation of over £78 million comes in at £1.5 million – or 1.8 per cent – less than in 2017/18.

A capital funding allocation of £6.6 million has also been made. But that figure includes specific capital grants.

On a comparative basis, it represents £600,000 – or 8.3 per cent – less than in 2017/18.

This morning’s council meeting was also the last one attended by outgoing chief executive, Mark Boden.

The council will appoint a new chief official in the near future.

• See this week’s Shetland Times for full story.