Title

FINANCE

Auditors' warning over £134m budget gap

Shetland Islands Council faces serious pressure to address a projected £134m budget gap by 2029-30, auditors have warned.

Auditors' warning over £134m budget gap

Shetland Islands Council faces serious pressure to address a projected £134m budget gap by 2029-30, auditors have warned.

The Accounts Commission said the council had continued to rely too heavily on its large reserves to balance its books — a practice it described as unsustainable. 

Councillors and officers have been told to take a more strategic, long-term approach to achieving financial balance.

Although the council has improved its performance management and community engagement on budget priorities over the past three years, auditors remain concerned about the pace of its change programme. 

Deputy chair of the Accounts Commission, Andrew Burns, said: ‘We're calling on the council to urgently increase the pace of its change programme and prioritise the actions that will help it achieve financial sustainability in the medium to long term.' 

Council leader Emma Macdonald said: ‘The gap between the funding we receive and what services we are expected to deliver is significant – and it is an unsustainable situation. 

‘We are determined to ensure the council addresses its unsustainable use of reserves while innovating and collaborating to address our population challenges, reduce inequalities, and sustaining and growing our economy.'

 

FINANCE

Working together in Wales

By Dan Peters | 21 September 2026

As shellshocked English council leaders bemoan the loss of trust in government over the delay to reorganisation, the picture in Wales couldn’t be more differ...

FINANCE

MJ Regeneration: The council homes push needs solid foundations

By Jackie Sadek | 21 September 2026

If councils are to come close to the targets to build new homes, amid the flurry of other Burnham policies, they will need serious support to deliver, says J...

FINANCE

LGR pause and review: what councils need to know

By Christopher Kerr | 18 September 2026

Christopher Kerr looks at the immediate issues and future concerns councils need to address following the pause in local government reorganisation.

FINANCE

Local government reorganisation: Assessing the financial impact of delay

By Tracy Bingham | 17 September 2026

Tracy Bingham looks at what the council reorganisation pause means for costs, savings, affordability and financial readiness.

Popular articles by William Eichler

-->