Magazine article Public Finance

Shetland Told to Improve Its Financial Management

Magazine article Public Finance

Shetland Told to Improve Its Financial Management

Article excerpt

One of Scotland's most affluent councils has been strongly criticised by a local authority watchdog over the way it manages its finances.

Shetland Islands Council, which has prospered over the past 3O years as a result of North Sea oil revenues, has been ordered to produce an improvement plan within the next three months.

It failed to agree a balanced budget for three successive years and dipped into financial reserves to meet a shortfall between expenditure and income. As a result, the value of reserves fell by £16m, according to the Accounts Commission.

The council has no loan debts, and has investments of EZSOm which have allowed it to provide high-quality services and develop the local infrastructure. It also has an enhanced role in the local community through the provision of air services and ferries and in helping economic development.

The report says: 'The commission recognises that these factors result in unique circumstances and that service delivery in Shetland can result in higher costs. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.