Council Confirms Council Tax Freeze and Growth in Key Services

14th February 2008

A freeze in the Council Tax and a growth in spending to accommodate priority front line services has been confirmed by The Highland Council. The Independent/Scottish National Party Administration were successful with their recommendation to keep the tax at 2007/8 levels and deliver a revenue budget for 2008/9 of £568.6 million, an extra £25.6 million (or 4.7% increase) over the current financial year.

The Band D will be £1,163.

The Administration made two amendments to its recommended budget proposals, which were accepted by the Council.

It was agreed to defer a decision to reduce core funding to Highland Community Care Forum. Instead the Council agreed to provide six months notice of any changes to HCCF and NHS Highland and this period will be used to discuss and determine how services will be provided in future.

Where the identified savings were not realised they would be met from further efficiency savings identified from the Social Work Services. The Council remained committed to promoting the work of the Highland Users Group and work to support carers.

The Council also confirmed that the proposal to adjust the teaching staffing formula by removing 0.5 full time equivalent teacher entitlements at school roll bandings 16 ~ 19 and 44 ~ 47 would not be progressed as part of the budget setting exercise.

The Council agreed to find compensatory savings amounting to £140,000 in financial year 08/09 and £210,000 in 09/10 through a further rationalisation of teaching posts in schools which are provided over and above the devolved school management entitlement.

Recognising that staffing allocations in primary schools have increased significantly since the introduction of the additional 0.5 full time equivalent in the smallest primary schools, it was agreed to review staffing arrangements. The withdrawal of the savings measure would allow time for such a review to be carried out as part of the budget preparation exercise for financial year 09/10.

Councillor Jean Urquhart, Vice-Convener and Chairman of the Budget Working Group, said: "Freezing the council tax meets the expectations of the Scottish Government and is good news for the people of the Highlands.

"Within a very tight settlement from Westminster, we have managed to balance the budget to allow for growth in priority areas and frontline services and to make the way we do business more efficient."

The Council Tax for 2008/9 will remain as follows: - Band A: £775.33; Band B: £904.56; Band C: £1,033.78; Band D: £1,163; Band E: £1,421.44; Band F: £1,679.89; Band G: £1,938.33; Band H: £2,326.

Budget allocations are: Education Culture and Sport, £228.8 million (+5.8%); Social Work, £106.2 million (+ 4.5%); Transport Environmental and Community Services, £64.6 million (+5.6%); Chief Executive's, £27.5 million (+ 2.8%); Housing and Property, £8.5 million (+ 7%); Finance, £6.5 million (+ 0.3%); Planning and Development, £6 million + (7.1%).

£63.9 million has been allocated for requisitions to the joint police, fire and valuation boards.

Earlier the Council agreed to peg the average council house rent increase to £3.09 per week. The average rent will be £61.38 per week, paid over 48 weeks.