Comhairle nan Eilean Siar is grappling with a projected £4 million funding gap as it works to balance its budget for 2025/26.
An initial estimate in December 2024 suggested that savings of up to £2 million would be required to steady the 2025 budget, though this only partially addresses the larger financial deficit.
Despite an increase in the government funding settlement, the Comhairle’s additional uncommitted funding amounts to less than 1% of the total 2024/25 settlement, which falls short of inflation and leaves the council in a precarious financial position.
Key decisions on how to achieve the necessary savings will be made in the coming weeks, with guidance from council officers.
This process begins later this month with a meeting of the Budget and Strategy Board and concludes in February when the Comhairle sets its final budget.
Balancing the books will likely require a combination of dipping into limited reserves, increasing Council Tax, and making cuts to service budgets.
At the forefront of the Comhairle’s priorities is securing funding for its flagship capital project – new school and leisure facilities for Barra and Vatersay – as well as additional financial support for inter-island travel in the Western Isles.
The Scottish Government recently committed £20 million to support inter-island travel in Orkney and Shetland, and the Comhairle is pushing for equivalent funding for the Western Isles.
While the Scottish Government has urged councils to keep Council Tax rises to a minimum, Comhairle nan Eilean Siar has argued that additional funding, potentially through the Island Councils Cost of Living Fund, is essential to limiting any tax increases.
Cllr Paul Steele, Leader of Comhairle nan Eilean Siar, highlighted the strain the current financial position places on local services and communities.
He welcomed the increase in funding but emphasised that it remains insufficient to maintain current service levels, calling for further government support to address the ongoing challenges.
Cllr Steele said:
“While increases in funding are much needed and are very welcome, the additional uncommitted funding that has been awarded to Comhairle nan Eilean Siar is again simply not enough to deliver our services to the public at their current level.”
He explained that tough decisions regarding Council Tax and service reductions are unavoidable but will not be taken lightly.
The Comhairle has committed to minimising the impact on communities, though some effects will inevitably be felt as the council continues to manage cuts year after year.
Cllr Steele stressed the importance of public sector reform as a long-term solution to breaking the cycle of service cutbacks and increased financial burdens on residents.
As budget-setting discussions continue, the Comhairle remains focused on advocating for change and securing additional resources to support the people of the Western Isles.