Council / Council tax could rise by three per cent
COUNCIL officers are recommending increasing council tax in Shetland by three per cent for the next financial year.
This comes after a freeze in 2021/22 following financial incentives offered to local authorities from the Scottish Government.
A report due to be presented to elected members next week says rising council tax by three per cent would bring another £310,000 into council coffers.
“Despite this planned increase, council tax rates in Shetland remain amongst the lowest across Scotland,” a report to elected members states.
Meanwhile the council’s proposed 2022/23 budget says that after balancing income and expenditure there would be a deficit of around £5 million.
This is to be met by reserves – deemed an “unsustainable” draw – in order to set a balanced budget.
Outside of this the council is to use £14.37 million of anticipated returns from long-term investments on a sustainable basis to fund expenditure, as well as income from the SIC’s harbour account.
Finance manager Jamie Manson wrote: “The utilisation of £5.14m from the reserves compares positively to previous years and shows that we are actively reducing our reliance on the reserves to finance our annual revenue budgets.
“Nonetheless, the use of £5.14m of reserves, over and above the amounts envisaged in our medium term financial plan, mean that we are not yet able to demonstrate the council is in a financially sustainable position.”
The budget will go in front of councillors at Monday’s policy and resources committee before getting a final airing at the full council two days later.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 630 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.