NEW figures suggest Shetland Islands Council has the smallest debt of all local authorities in Scotland.<\/b><\/p>\n
Whereas borrowing increased on average across the UK\u2019s councils from the end of 2023\/24 to the same period in 2024\/25, the SIC\u2019s figure stayed the same at \u00a349 million.<\/p>\n
This gives a total debt per person in Shetland of \u00a32,130, which is higher than some other local authorities.<\/p>\n
The figures come from the BBC\u2019s Shared Data Unit, which has published analysis featuring data from every local authority in the UK.<\/p>\n
The SIC appears to have the lowest figure of all councils in Scotland, with Orkney \u2013 at \u00a350 million \u2013 close by.<\/p>\n
The debt covers borrowing used to help pay for a range of capital projects, from the new Anderson High School to the Toft pier.<\/p>\n
Separately the council has reserves which is put into investments to generate income, with the value of these sitting at more than \u00a3370 million at the end of March.<\/p>\n
SIC finance manager Paul Fraser said the ability to borrow helps the council to afford large one-off costs.<\/p>\n
\u201cThe council may decide to borrow rather than using reserves, where the cost of borrowing is believed to be lower than the value of the return from reserves invested,\u201d he explained.<\/p>\n
\u201cCare is taken to review each borrowing decision, as borrowing has a cost and has to be affordable.\u201d<\/p>\n
The SIC\u2019s treasury management strategy statement for 2025\/26 said all external borrowing to date has been from the Public Works Loan Board, which is overseen by HM Treasury.<\/p>\n
This is on a fixed rate maturity basis, where the money borrowed is repaid back at the end of the loan period.<\/p>\n
As of 31 December 2024 the annual interest on these loans amounted to \u00a31.67 million.<\/p>\n
The statement said that over the next five years a total of \u00a314 million of loan value will be repaid.<\/p>\n
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