Members of Orkney Islands Council have been briefed on the difficult choices they face in deciding how to make substantial cuts to the local authority’s budget.
At a series of special briefings for Councillors, OIC Directors outlined the potential impact of reducing Council spending by up to 20 per cent over the next three years.
While the final level of cuts could be considerably less, there will still be a serious impact on jobs and services – with the Council facing a reduction of between £9 million and £18 million in the amount it has to spend over that three year period.
“As a direct result of the global financial crisis the Westminster Government will be providing the Scottish Government with less resources – and that means less funding for every local authority in Scotland,” said Councillor Stephen Hagan, Convener of OIC.
“In tough times, tough choices will be needed. That is the stark reality we face and it’s why the exercise we’ve just been through has been a sobering experience for us all.
“It has given us a detailed picture of the serious impact cuts may have on the Council and the services we provide for our community.
“It is important to stress, however, that this exchange of information was just the start of a process and that no decisions have been taken at this stage.”
That process will culminate in February next year, when the Council decides how its much-reduced budget will be spent between 2011 and 2014.
“Between now and then there will be considerable engagement with our staff, the Trade Unions, our service users, our partner organisations and the wider Orkney community,” said Councillor Hagan.
“It will be a wide ranging exercise and the feedback we receive will play an important role in helping us make difficult decisions about the best way forward for the Council.”
Like all local authorities in Scotland, OIC will find out towards the end of the year how much its grant from the Scottish Government has been reduced.
To help Councillors assess the impact of a substantial reduction in the funding it receives, the Council’s Directors were asked to look at the potential effects of cutting spending by a fifth over three years.
“At this stage we anticipate having to make savings of between 10 and 20 per cent – because we’ll have between £9 million and £18 million less to spend over the next three years,” said OIC Chief Executive Albert Tait.
“We hope that the savings we have to make will be considerably less than 20 per cent. But it is important to emphasise that this will still have a substantial impact on the jobs and services we provide.
“As we prepare to engage with our staff, with the Trades Unions, the people who use our services, partner organisations and the public at large, our aim is to be open and realistic about the tough times we all face.”
The Council will announce shortly the first in a series of initiatives designed to give people their say on the financial challenges it needs to address.
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