Monday April 27th 2026
West Lothian Council headquarters
Written by Local Democracy Reporter, Stuart Sommerville
The war in Iran could impact West Lothian households and council services, councillors have been told.
Surging food and fuel costs on the back of the six weeks since the United States and Israel attacked Iran will only add to the already dire picture of budget constraints facing the council.
West Lothian has had to make budget cuts of more than £184m in the last 19 years councillors heard.
A Horizon Scan report to the Corporate Policy and Resources PDSP this month made for grim reading.
Senior Service Accountant Karen Stevenson told the committee: “Since the beginning of the US-Israeli war with Iran, there has already been a financial impact on people’s finances in the UK. To what extent the impact is felt will depend on the duration of the conflict and how quickly supply lines and economies can recover.
“In terms of West Lothian Council there are multiple areas where this conflict could financially impact on the council. Firstly, fuel prices have increased. According to analysts, every $10 increase in oil equates to an increase of approximately 7p a litre in pump prices.
“For the council, this will have a financial impact on the running cost of operational vehicles. Higher petrol and diesel prices can also carry through to higher prices for goods and services.”
Before the war began there had been a hope and expectation of a fall in interest rates. If interest rates remain the same, or increase, if the war is prolonged, this will have a knock on effect on the council in terms of increasing the cost of borrowing.
Ms Stevenson also told the committee: “Excluding ring-fenced funding for Scottish Government policy commitments, councils have
experienced a real terms reduction in funding over the past decade. Despite having to make savings of £184.5 million to date since 2007/08, and with continued budget gaps projected to 2027/28, proactive financial planning has provided as strong a position as possible in the current climate to address ongoing challenges in public sector funding.
“The extent and seriousness of the financial challenges facing councils in Scotland is unparalleled. Prospects for all budgets are worsening, particularly for budgets that are not protected or prioritised.
“The council only has Scottish Government funding confirmed for one year, 2026/27, however it is apparent that a range of factors highlighted in this report will continue to have implications.
Ms Stevenson added: “Historically, funding provided falls short of the amount required to continue delivery of all local services as they are currently provided. The current budget strategy period is the most difficult financial position faced since the council was created in 1996.”
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