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Orkney Islands Council’s Policy and Resources Committee has agreed to recommend a £1.9 million savings target for the next financial year – considerably less than the £4 million originally anticipated. The reommendations also exclude introducing charges for Telecare services and instrumental tuition in schools.

Elected Members recommended that savings made during 2012-13 should be achieved through efficiency measures wherever possible – as well as the restructure of senior management at OIC. 

The Committee also recommended that Council Tax levels remain frozen next year, in line with an agreement between the Scottish Government and all 32 of Scotland’s Local Authorities.

OIC has had to make savings of £4 million during the current financial year, following a substantial reduction in financial support from the Government.

“Thanks to commendable efforts by management and staff across the Council, we are on track to achieve that target – and those savings will feed through into next year as well,” said OIC Convener, Councillor Stephen Hagan.

“This has enabled us to recommend a much reduced savings target of £1.9 million for 2012-13. The other important factor is a far smaller reduction in our funding support from the Government for 2012-13 than we could have anticipated a year ago.

“We have also reduced the Council’s senior management team from 34 to 18 chief officer posts, which will result in considerable savings next year and in the years ahead.

“I am pleased to say that we now in a position where savings during 2012-13 can largely be achieved through a range of efficiency measures. I hope this will be welcome news for the community we serve.”

Consultations have taken place on the possibility of charging for Telecare services and for instrumental tuition in schools. The committee agreed that no charges should be made for these services.

Chief Executive Albert Tait said: “Good foundations have been laid during the current year and the Council is in a sound financial position as we look to the year ahead.

“A key aim for the new senior management team is to make the Council more efficient and effective in everything it does. This will stand us in good stead for what is still an uncertain longer term future.”

The Committee’s recommendation – that a total of £82.8 million should be spent on running Council services during 2012-13 - now goes to a special meeting of the Full Council on Thursday, February 9, which will set OIC’s budget for the year ahead.

If agreed, the savings required for the next financial year will include a reduction in the Council’s current workforce by the equivalent of 13 full-time posts. Ten of these are currently vacant.

Every effort will be made to reduce the remaining posts through measures such as voluntary redundancy, redeployment and early retirement.