In December 2024 the Comhairle assessed that there was likely to be a need to make up to £2 million of savings in setting the 2025 budget. Finding these savings in current services will go some way to addressing the Comhairle's total anticipated deficit of £4 million.

Despite an increase in the settlement, the Comhairle's uncommitted additional funding (after considering public sector pay awards, directed spend on Health and Social Care and other Government commitments) gives an increase of less than 1% of the total 2024/25 settlement. This figure is below the current rate of inflation and leaves the Comhairle once again in a challenging financial position.

In the coming weeks Members will have to decide, following advice from officers, how these savings may be found. That process will begin later this month with a meeting of the Budget and Strategy Board, and end when the Comhairle meets to set its budgets in late February. Other elements of putting together a balanced budget are likely to include further use of the Comhairle's limited reserves, a Council Tax increase and reductions in service budgets.

The Comhairle is looking for confirmation of support for its priority capital project, a new school and leisure facilities for Barra and Vatersay. The Comhairle will also seek additional funding for inter-island travel in the Western Isles following Scottish Government’s commitment of £20 million to support inter-island travel in Orkney and Shetland.

Last year the Cabinet Secretary for Finance, Shona Robison claimed that council tax increases should be kept to a "minimum" this year, and that a proposed £1bn uplift in funding for councils should prevent them from introducing any "large" tax increases. In a letter to the First Minister the Comhairle has made clear that the best means by which the Comhairle could consider limiting an increase in Council Tax would be if additional funding, perhaps through the Island Councils Cost of Living Fund, could be provided.

Cllr Paul Steele Leader of Comhairle nan Eilean Siar said: 

“While increases in funding are much needed and are very welcome the additional uncommitted funding that has been awarded to Comhairle nan Eilean Siar is again simply not enough to deliver our services to the public at their current level. I have written to the First Minister and Finance Secretary to seek assurances on the Comhairle's overall financial position and alongside COSLA colleagues will continue to make the case for additional resources."

“I would like to stress that decisions to raise Council Tax or reduce services will not be taken lightly. The current financial position of the Comhairle means that we must make difficult decisions and while we will always look to limit the impact budgetary decisions have on the public it is inevitable that they will be felt throughout our communities. As we work on setting this year’s budget we will continue to make the case for change and public sector reform. The Comhairle cannot continue to cutback services year on year and the people of the Western Isles cannot continue to be asked to pay more and receive less. It is the view of the Comhairle that progressing public sector reform is the route to break this cycle.”