OIC provisionally accepts funding settlement
OIC convener Councillor Steven Heddle said there would be no advantage in rejecting the offer and, furthermore, doing so would result in a less favourable package.
The council is currently going through its budget setting-process and, with an estimated funding shortfall of £12 million over the next five years, the local authority is facing some stark choices.
Although OIC now has the ability to increase council tax, and could charge more for some of the services it provides, significant cuts are expected.
These could be offset by drawing down more from council reserves. However, last week, the convener warned that this is not a sustainable option in the long term.
Despite this, he remains hopeful that the Scottish Government will provide increased funding to run Orkney’s lifeline ferry services, which costs the council an additional £3 million per year.
Councillor Heddle said he had responded to the Government accepting the offer for 2017/18, however the decision still has to be formally agreed by the full council which meets next month.
Further details in The Orcadian on Thursday.