Councillors in the Western Isles have been warned that savings of up to £20million may be needed over the next few years.
Their finance director Robert Emmott has highlighted the “considerable uncertainty” over Scottish Government funding for councils over the coming period with the “likelihood of further reductions” offset by ring-fenced funding for new schemes.
His forecast is for required savings in the region of £12million over the next two years – or up to £20million by 2022/23 – to balance the books.
Protection of care services, the need to maintain teacher numbers and fixed financing costs means “all other services could be required to make savings of 43% to achieve £20 million.”
A £12million reduction would need 12% cuts or savings.
An initiative by council leader Roddie Mackay to establish a budget board to constantly monitor the finances while regularly consulting with community groups has been backed by councillors.
With a feared wave of cuts looming, council bosses are drawing up outline five-year plans, indicating where savings can be made by changing the way services are delivered.
The council’s human resources department will “develop costed options” to help the process.
Council leader Roddie Mackay said: “We’re setting up a budget board with the aim of looking at budgets much earlier in the life of the council which will involve every ward.”
The pledge is for “consultation and information to become commonplace.”
It should avoid last-minute consultations before a budget is finalised.
A councillor from each of the nine island wards will sit on the budget board whose role is to “feed back” to a grassroots forum such as a community council or local association.