Orkney’s council tax could rise by 15%

Councillors in Orkney have voted narrowly in favour of a proposed 15% increase in the islands’ council tax – after rejecting a suggested rise of 20%.

Officials had recommended putting the rate up by 11%, but councillors voted 11-10 in favour of 15%.

A full meeting of the council will be asked to approve the rate.

Shetland Islands Council has agreed to a 10% increase in bills, while Western Isles authority Comhairle nan Eilean Siar has agreed on a 7.5% rise.

For an average band D property, the increases would mean an annual bill of:

• Orkney – £1,574.59
• Shetland – £1,386.67
• Western Isles – £1,378.67

In Orkney, the proposed increase is forecast to raise an extra £1.7m for the council.

It has identified the need for £700,000 savings, increasing charges for its services by 10% and introducing new charges for services such as telecare.

It faces using up to £20m from its reserve fund to maintain its services.

Shetland’s deputy leader Gary Robinson said the 10% rise would help the island authority to get back to a more sustainable position.

He said Shetland had had the lowest council tax rate in Scotland for years.

Council officials had been recommending a rise of 5%.

The local authority is still expected to need to draw about £36m from its reserves to balance its new budget.