The budget fully addresses the Comhairle’s initial deficit of £5.4m using a council tax increase, returns from investments, the use of uncommitted reserves and savings from service budgets to set a balanced budget.

Members agreed to an 8.5% council tax increase, a reduction from the initial proposal of 9.5%. The reduction in the council tax increase was funded using £150k of uncommitted reserves.

Members of the Comhairle unanimously agreed not to implement the proposed saving of £50k in relation to School Counselling and Children and Young People’s Mental Health funding, with the required funding taken from the Coastal Community Fund.

Key figures from the Comhairle’s budget include:

• Use of Reserves - £400,000
• Savings from Services - £ 381,000
• Council Tax Increase – 8.5% (Band D Rate - £1,505.50)
• Additional Levy on Second and long-term empty properties (If legislation passes on 1 April 2026) - £362,000

In his budget speech, Cllr Paul Steele, leader of Comhairle nan Eilean Siar, said: “I am once again pleased to place before you and to recommend your approval of a balanced budget based on realistic and prudent financial planning, which balances use of reserves, external funding, council tax and agreed adjustments to service provision but which does not just look at the year ahead, but the two years after that, for which we have a duty to prepare and protect our services and our communities.

“This balanced budget will sustain the Comhairle and with it the communities of the Western Isles for a further year, while putting aside sums which we will undoubtedly need in future years. It is the product of much thought, deliberation and hard work by the budget and strategy board, members and our officers, and I commend it to you.”