Western Isles financial crisis worsens

Western Isles Council faces a massive financial crisis of nearly £12 million over the coming three years - with the scale of the money woes soaring by a third more than previously forecast - it emerged today.

Islanders are set to chose what services should be cut to balance the books up to April 2018.

The council is expected to tour village halls in a series of budget cut community consultations.

More redundancies and early retirements loom due to the worsening cash problems mainly caused by the higher cost of pension contributions and the soaring cost of caring for elderly people.

In addition, reduced central government funding is eroded by inflation.

Previously, it was estimated around £9 million was needed to take the council through to 2018.

But councillors were shocked to hear this figure has now risen by an extra £3 million, taking the total funding gap up to near £12 million.

This includes finding £3.7 million for 2015.

Council leader Angus Campbell said: “Our own projections suggest further savings of around £8.2 million may well be needed across the last two years of our council.”

“In developing our budget for this period I want us to look at how we can all re-engage with our communities on budget choices, an exercise which we have very successfully undertaken before.

“I want to see genuine participation in the budget setting with all council members and local communities playing their part in the process.”

The council agreed with councillor Donald Crichton to press the Scottish Government over “options to mitigate the exceptional financial crisis.”

Council financial crisis worsens, faces £12 million blackhole

11 February 2015