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Highland Council Proposes 7 percent Rise in Council Tax But Some Cuts Will Be Made

27th February 2025

Highland Council at its special meeting on 3 March 2025 will propose to raise council tax by 7%, with 5% for core service provision and 2% for investment in schools and roads through the Highland Investment Plan. The SNP led administration has a majority so the proposals are likely to be passed at the council meeting.

With so many years where he Scottish Government forced councils to freeze the levels of council tax Highland like other councils has had to make savings and the squeeze being ended means rises were expected.

For 2025/26 there will be no use of reserves.

There will be more reductions in certain parts of the budget.
There is a savings package presented as part of the budget of £14 million for the next three years, which will add to existing saving plans, resulting in a total of £36.7m to be delivered over 3 years. These new savings are described under the themes of improvements to the operating model, efficiencies and mechanisms to generate additional income for the council. More details will be published shortly.

Some Additional Savings
£2.304m savings to be delivered over three years connected to establishing the future council operating models

£3.810m is to be saved over the three-year period through further planned efficiencies.

£7.974m is expected to be raised through further income generation activities.

Proposed Revenue Investment

As a result of the overall budget package proposed, £4.5 million additional revenue would be invested in strengthening Highland services, following through on the My Future Highland Programme and Delivery Plan, including:

The creation of a Poverty and Equality Commission for the Highland area, with £870k associated with specific developments to focus on tackling poverty

£2.3 million in education (focusing on school improvement and additional support needs)

Major upgrades to grass cutting and local amenities service (£450k).

The reinstatement of the Council Access Ranger Service for 2025-26 (£650k).

The establishment of community touch down and access for staff across a number of locations, as part of our work to develop a more integrated offering more locally for the public (£500k).

The investment of an additional £250k to increase the funding for respite provision across the Highland area.

Proposed Capital and Reserves Investment

As a result of the overall package proposed the following investments are to be considered by elected members:

In line with national policy, a £2 million fund to increase the numbers of teachers which in time will support planning and curriculum development

To enable the Social Value Charter from Renewables, an £8 million energy investment fund will be created to enable on-going revenue to come to the council through partnership.

To enable the expansion of our in-house bus services, a £6 million expansion fund will be created to enable the expansion of the provision.

To support and enable community based recycling schemes an initial £500k Repair the Highlands fund will be created, which will be added to in future years.

Over 100 jobs will be created across Highland through the investments.

Over £4.5 million revenue investments planned.

Over £17 million additional reserves investment earmarked for major developments on behalf of Highland residents.

 

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