The Scotsman

Orkney agrees to freeze council tax – but only if it receives an extra £1m

- Rachel Amery

Orkney Islands Council has said it will accept the Scottish Government’s council tax freeze – but only if ministers come good on their promise to hand over an extra £1.1 million.

The council had been discussing proposals to ditch the Government’s council tax freeze and instead raise taxes by 10 per cent.

However, the local authority has provisiona­lly agreed to the Government’s plan after Finance sec re tarysh on aro bisonwrote to the council promising more money–but only if councillor­s agreed to freeze council tax.

This comes after Argyll and Bute council rejected the government’ s council tax freeze and will now raise the tax by 10 per cent.

Orkney council leader Heather Woodbridge said the council’s finances were “unsustaina­ble” as the local authority needed to save £9m over the next three years. At a meeting yesterday councillor­s agreed to the council tax freeze while also taking £20m out of its strategic reserves fund.

Councillor wood bridge said: “whether that’s a household budget or a council one our communitie­s must be aware of the challenges, not just this year, but also for the years ahead.”

The Scottish Government said in the 2024/25 Budget it would cover a 5 per cent increase in council tax, allowing local authoritie­s to freeze amounts for the next year. This would have given Orkney Islands Council just over £565,000 – a 10 per cent increase in council tax would have brought in £1.2m.

UK Chancellor Jeremy Hunt is due to set his spring budget next week and is expected to pass on additional funding to the Scottish Government through Barnett consequent­ials. Ms Robison has pledged to hand over some of this money to councils, including an extra £1.1m for Orkney. She said the council could now receive £240,990 from the UK government’s Barnett allocation, alongside £900,000 from an islands’ cost-of-living allocation – but only if it agrees to freeze council tax. if the promised extra money doesn’ t materialis­e, the council says it will meet again on March 11 where proposals to increase council tax by 10 per cent will be back on the table bringing a Band D property to £1,506.

 ?? ?? Whitemill Bay on Orkney. A 10 per cent increase in council tax would rate a Band D property at £1,506.
Whitemill Bay on Orkney. A 10 per cent increase in council tax would rate a Band D property at £1,506.

Newspapers in English

Newspapers from United Kingdom