£4.25 million cut to OIC budget settlement

November 30, 2012 at 7:19 am

Orkney Islands Council has received confirmation of the 2013/14 budget settlement from the Scottish Government.

The council’s overall funding, including the contribution from the Government, will be £67.286m. The 2012/13 figure was £71.540m.

According to the OIC, the reduction is due to funding previously received for the police and fire services being passed directly to the new boards. This means that, notwithstanding a few minor adjustments, the settlement announced represents little change from the provisional figures issued in February 2012.

The “flat cash” settlement for local government over the three-year settlement period of 2012-15 will see Orkney suffering a real reduction in resources over the period.

The council says it will now need to continue to find savings and efficiencies to cover additional costs in 2013/14 arising from:

Inflation
Rising fuel and utility costs
Pay award likely for staff

The council will also have to consider ways in which it can meet increasing demand for its services.

OIC convener, Councillor Steven Heddle, said: “With a settlement diminishing in real terms, inevitably we must consider more savings and efficiencies. The challenge we face between now and the budget setting meetings in February 2013 is to consider ways in which we can minimise the impact so we continue to provide the best possible services for the people of Orkney.”