Highland Council plans to hike council tax by three per cent and boost roads funding by £5.5 million
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Highland Council is set to hike council tax by three per cent and invest an extra £5.5 million in roads this year.
Today it revealed plans for its £642 million budget which is to be decided a week from today.
The news of the tax rise will come as a blow to many households but some councillors insist it 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 both to maintain core services, such as providing welfare support to hard hit locals, with a budget gap of £34.1 million to address.
For households in the various bands the increase in tax will range from £22.21 (£762.39 annually) at the lowest Band for disabled people to £97.93 (£3,362.14 a year) at the highest in Band H.
That is not enough to tackle the shortfall, however, and other measures include a huge range of savings and efficiencies worth £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 among others.
That comes after a Scottish Government core funding reduction of £3.9 million while there is ring-fenced funding for social care of £24.8 million, education of £6.5m, and Scottish Government policies like free school meals, music tuition, curricular charges and child bridging payments.
The big ticket items to pay for are schools and nurseries (£164.4 million) and adult social care (£114.8 million) followed by £58.1 million on loan charges on the council’s massive debt of more than £1.6 billion.
But in better news, roads maintenance will get a significant financial boost with £5.5 million this coming financial year amid increased public clamour for more to be done about potholes and the state of the Highland network generally.
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.
The roads and climate crisis investments form part of the larger Health and Prosperity Strategy for the Highlands programme valued at £10 million which was first developed last year.
The strategy seeks to balance the current financial pressures, with the drivers for economic growth and recovery from the pandemic but essentially it is investment in the economy and securing medium term financial sustainability for the local authority.
In-year financial prudence and building reserves has enabled the Council to be in a position to invest in the Highland while balancing the budget and addressing the challenges and risks moving forward.
The proposed collaborative involving the independent, Liberal Democrat and Labour groups also proposes £1 million for innovation in education, £1 million for early interventions in children’s services and a £500,000 boost for rural transport.
Deputy leader Cllr Alasdair Christie, who largely leads on budget issues, said: “I am pleased that this is again a collaborative budget which I hope colleagues across the chamber will support.
“We are proposing a budget which has been targeted to improve health and prosperity in our area and which will set a firm foundation of investment on which to build a sound, immediate and lasting recovery.
“This additional investment builds on our Economic Prosperity Fund, Visitor Management Strategy, place-based investment, additional local ward discretionary funding and transformation money, as well as the Council’s agreed capital investment programme of £260 million across the region over the next two years.”
Leader of the Council, Margaret Davidson welcomed the collaborative work which has resulted in the current budget proposals, saying: “The additional £5.5 million we are proposing to put into roads alone will result in a considerable investment of £31 million in our road network over a three year period.
“This will be really good news for people across the Highlands. I am delighted that we have reached a balanced budget position and have a very positive set of proposals through discussion and collaboration with our colleagues and partners.
“I would like to thank the tireless work of officers and staff in helping us to achieve these investment levels and close the budget gap with a range of efficiency and management savings. It has been a tremendous feat to get to this stage and I am proud to present such a set of budget proposals despite tremendous challenges.”
Leader of the SNP opposition, Cllr Raymond Bremner added: “Our communities across the Highlands have been faced with challenging, unprecedented times over the past couple of years, with considerable uncertainty in respect of what lies ahead, especially with continual inflationary pressures.
“The council needs to continue its path of redesign and transformation in order to be sustainable into the future. How we use our assets and resources and work with partners and communities, over the coming years, is crucial to achieving climate change targets, efficiencies and a brighter future for the Highlands.”
Labour group leader, Cllr Jimmy Gray, added: “I am pleased that once again we have been able to develop a budget which protects jobs which are fundamental to the economy of the Highlands.
“Our budget proposals present a balance of investment and savings, while sustaining important services to communities and maintaining sufficient general reserves to see the Council through the risks and uncertainty ahead.”
The budget proposals will be considered at a meeting of the full council on March 3 where it will be moved by Cllr Christie and seconded by the SNP’s budget spokesman Cllr Ian Cockburn.
