Council / ‘Tug of war’ between sustainability and services as savings options mooted
THERE is a “tug of war” between Shetland Islands Council (SIC) trying to become more financially sustainable while continuing to deliver good quality services.
Finance manager’s Paul Fraser’s view comes with several savings proposals included in the SIC’s 2026/27 budget documents.
These proposals are only options at this stage, with some likely to be ruled out in due course. They can be found here in appendix seven.
But SIC admits itself that a number of the proposals would not be popular or would come with a number of negative impacts – such as reducing opening hours at the Gremista dump or cutting back the winter roads service.
There are also ideas like no longer offering relocation and interview expenses, reviewing Shetland Shellfish Management Organisation (SSMO) funding and ending all burial ground grass cutting other than for safety requirements.
Elsewhere in the proposals – which have been given initial ‘traffic light’ rankings of acceptability – there are ideas to review the contracts for the Promote Shetland service and the Shetland Museum and Archives, move to a three-weekly waste collection cycle and to introduce public toilet charging.
There are also some proposals which would be less controversial, such as maximising in-house energy generation at the Scord Quarry and lobbying for ‘fair revenue funding’ for inter-island flights.
Financial pressures at the SIC – and among local government elsewhere – in general is no secret, with rising costs and increasing demand part of the equation.
Overall the proposed SIC budget for 2026/27 amounts to nearly £190 million, with £45.7 million of this to be met by reserves. Of this proposed draw, around £26.1 million would be deemed “unsustainable”.
Speaking at a meeting of the SIC’s environment and transport committee on Tuesday morning, leader Emma Macdonald said some of the savings options would come with “real significant impacts”.
She highlighted reducing winter roads maintenance as one which could be particularly difficult, especially given the weather in recent years.
Environment and transport committee chair Moraig Lyall said some “less palatable” options might be her doing because she wanted to see a full list of potential savings, “whether they were unpalatable or not” so members could see what was possible.
Finance manager Paul Fraser explained that a “much more rigorous approach” to impact assessments has kicked off as officers look at the proposals in more detail.
He said the expectation is that proposals would come back to councillors with a full impact assessment.
But Fraser said there is a “dilemma” and a “tug of war” between the desire for financial sustainability and the desire to provide good quality services “to the best of our ability”.
Fraser said all of the ideas have been scoped in for discussion, and added that he did not expect all to go ahead.
“I think some of these things will be easier than others,” he said.
Shetland Central member Catherine Hughson also sought assurance that reports would come back to the committee for final decision.
Fraser said he was unable to confirm the exact process at this point, but he did say where are specific proposals for change it would likely merit its own report for decision.
But he said some things which are “very straightforward” may sit within another report.
Meanwhile development committee chairman Dennis Leask warned against any saving proposals which may have a long-term impact on capital assets, such as cutting back on road surface dressing.
Lyall also reiterated a warning from Fraser about the rising costs the council is facing, including from national pay awards and inflation.
The message is that core funding from the Scottish Government is not keeping pace with this.
Lyall said as things become “tighter and tighter every year”, it is important to look at ways where possible savings could be made.
She referenced another local organisation seeking to close a major asset – no doubt Shetland Recreational Trust and its plans to shut the Scalloway swimming pool amid financial challenges.
“I think we need to just keep very aware of the fact that the cost pressures continue to exist, they’re not getting any better, and that in the year or two ahead then that might become the point where it’s not just other organisations but us that are looking at extremely unpalatable decisions,” Lyall warned.
Become a member of Shetland News
Shetland News is asking its readers to consider paying for membership to get additional perks:
- Removal of third-party ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
