Council tax rise of 3% on cards as Highland Council proposed budget

Highland Council is set to hike council tax by three per cent and invest an extra £5.5 million in roads as it reveals its £642 million budget.

The news of the tax rise – which is set to be confirmed next Wednesday, March 2 – will come as a blow to many households but top councillors insist the rise is necessary in the current climate, with council leader Margaret Davidson saying it “one of the tightest budgets” she had ever seen.

They argue that the three per cent, which is worth £3.9 million, is needed to maintain core services, such as providing welfare support to hard-hit locals, and to tackle a budget gap of £34.1 million.

Tackling the budget gap involves a huge range of savings and efficiencies totalling £11.8 million, the use of £5.7 million of reserves to offset Covid budget pressures and the reversal of 2021/22 one-off items and other roll-forward changes worth £6.4 million.

That comes after a Scottish Government core funding reduction of £3.9 million amid ring-fenced funding for social care of £24.8 million, education of £6.5 million, and Scottish Government policies like free school meals, music tuition, curricular charges and child bridging payments.

But amid increased public clamour for more to be done about potholes and the state of the road network in Caithness and across the Highlands, roads maintenance will get a significant financial boost with £5.5 million this coming financial year.

Of that sum, £3.5 million is a one-off investment in plant, machinery and the like, while £2 million will be a recurring investment over time which totals £22.7 million over the coming year.

There will also be a £2 million investment in climate action, green energy and jobs that seeks to maximise the opportunities presented by hydrogen power, restoration of peatlands and forests as well as flood management and coastal protection.

A meeting of the full Highland Council will be staged next Thursday when the budget will be moved by deputy council leader Alasdair Christie and seconded by the SNP group’s budget spokesman Cllr Ian Cockburn.

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