Council / Government funding package ‘encouraging’, SIC leader says
SHETLAND Islands Council (SIC) leader Emma Macdonald says the local authority’s proposed funding package from the Scottish Government for 2025/26 is “better than we anticipated”.
However the councillor said “we do still need to work through the details to fully understand how this impacts us”.
The government said the SIC stands to receive £118.9 million in core funding in 2025/26, up by £7 million on the previous year.
This represents a 6.3 per cent increase.
The SIC – as well as its Orkney counterparts – will also receive £10 million in capital funding for inter-island connectivity.
That is on top of the money the SIC receives from the government for covering the deficit in running its inter-island ferries, which for 2023/24 amounted to more than £23 million.
Macdonald said while the funding news appears positive, “it won’t solve the costs pressures that face us”.
“We have increasing demand in a number of areas, and these are adding to the challenges we face,” she added.
“Over the years local government has faced significant reductions in its allocation, so it is good to see that this budget appears to recognise the important role that local government plays and hopefully we will continue to see that reflected in future budgets.”
The government said across the country the 2025/26 settlement includes a £289 million increase in funding to be used by councils to meet local needs, and £120.5 million additional funding for pay deals.
It said the budget also includes a one-off payment of £40 million to help councils respond to the climate emergency, and additional funding to support free personal care, teacher numbers and island communities.
Finance secretary Shona Robison said: “Our budget is laying the foundations for Scotland’s future success, with investment to help improve the public services that people rely on.
“Local authorities provide some of the most important services to our communities – from schools to social care – which is why we’ve increased their funding by more than £1 billion compared with last year’s budget.”
Robison also said the funding increase should mean there is “no reason” for big rises in council tax in 2025/26.
However, the SIC has already consulted the community on potential council tax rises.
Increases of three, five or ten per cent were suggested, as well as freezing council tax for another year.
The Scottish Government’s 2025/26 budget setting was bolstered by extra cash from the new Labour government in Westminster.
Labour said it had pledged an extra £1.5 billion for the Scottish Government this year and another £3.4 billion next year.
However, the Scottish budget remains in draft form until MSPs vote in February.
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