Will college repay £3.5 million debt to OIC?

The local authority could end up writing off a seven figure debt it is has been racking up to UHI Orkney over the past four years.

Chiefs at the institution and its governing body, Orkney Islands Council (OIC), have admitted there is no plan in place as to how the money will be repaid. 

Like all other higher education establishments in Scotland, it has been battling to address hefty annual budget shortfalls.

This has led to it relying on OIC baling it out by dipping into its reserves to keep UHI Orkney solvent.

The totals were £555,000 in 2023/24; £861,000 in 2024/25; and £1,260,000 in 2025/26.

A further £914,500 is being requested to make the sums add up in the projected budget for the current financial year.

A special taskforce has been set up to seek savings and new sources of income in a bid to cut the size of the annual deficits, if not eliminate them. 

Members of OIC’s education, communities and housing committee on Wednesday approved the latest draft budget.