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OIC’s settlement package drops by £800,000

Orkney Islands Council funding from the Scottish Government, for 2012-13, will be £71.5 million – a reduction of £800,000 to the figure received for the current financial year.

OIC convener, Councillor Stephen Hagan, said: “After being promised a ‘flat cash’ settlement by the Scottish Government, it is disappointing that our funding, rather than remaining the same as for this year, has dropped by what is a substantial amount for a small local authority.”

Councillor Hagan added: “All the indications 12 months ago were that OIC’s Government funding would be reduced substantially again for 2012-13 and for the following financial year as well.

“We now find ourselves in a better financial position than we could have anticipated a year ago – but still with some difficult decisions to make.”

According to the convener, the settlement reduction, combined with factors such as inflation, rising energy costs and an increasing demand for services, means that councillors will still have to consider making more savings over the years ahead.

Councillors meet to consider the OIC’s financial position on December 20.