Highland residents set to see council tax increase by 7%

Highland Council have announced plans to increase council tax by 7%.

It comes as part of a wider budget announcement detailing the council’s financial plan for the year ahead.

Council leaders have said the plans are a “major step towards financial security”.

How much could your council tax increase?

An average band D property in the Highlands currently pays £1,427.19 per year in council tax.

Council leaders plan to increase the tax by £99.90 to £1527.09.

This an approximate an increase of £1.92 per week.

However, different bands of council tax could face charges ranging from £55-£245 this year.

Highland Council have planned for 7% increase this year and for the next two years, amounting to a 21% total increase by 2027.

This would leave Highland households with an extra council tax bill of £64-£280.

Council tax rise no ‘secret’

A rise in council tax, as is being seen across the country, was always on the cards for councillors.

“5% is already known – We haven’t made a secret of that,” said Council leader Raymond Bremner.

However the other 2% of a council tax increase has been allocated for spending on “schools, roads and other infrastructure”.

This means an estimated equivalent of £3 million extra a year for key council services.

What will Highland Council be funding?

Council leaders are hoping a series of new investments coming with the budget will create an estimated 100 or more jobs.

A number of the council’s budget hopes include –

£870,000 to go towards fighting poverty in the Highlands, through the creation of a new organisation.

£2.3m for education with a specific focus on “strengthening” additional support for learning (ASL) services.

£450,000 to go into grass cutting and improving local amenities.

The council hope to fund these proposals through a number of income streams and cost-saving.

Included is Highland Council’s recent purchase of D&E coaches.

Plans also include taking advantage of the soon to be opened Inverness Castle attraction.

The castle project’s potential revenue has already featured as having an impact in future budget calculations.

Are there going to be price increases or cuts?

These funding proposals come alongside the £19.5 million in savings the council is due to make to balance this year’s budget.

The additional pressures come from increases in national insurance and other finances which is costing the council an additional £27 million.

A number of prices are set to increase including a ticket for the Corran Ferry, charges for public showers and parking for camper vans.

Several savings, including recycling services and “reconfiguring school assets” are also set to be made.

What have council leaders said?

Council leaders insist they are making “sustainable” progress with public investments in the Highlands with the council tax increases.

The 5% increase is there to cover council costs, with the 2% supporting public benefit projects.

They say there has been a “lack of assurance” in funding for these projects from the Scottish Government.

Leader of the Council Raymond Bremner said: “We needed to come up with something that was a lot more sustainable.”

He admitted schools and particularly roads have seen “marked under-investment for many many years.”

“We needed to do something about that."

Council convenor Bill Lobban said: “This actually takes the council’s investment programme back into our own hands.”

“But it doesn’t take away the necessity from both central governments to continue to invest the highlands.”

The budget proposals will be discussed by councillors next week.