Council / Council tax could rise by five per cent
A FIVE per cent council tax rise in Shetland has been proposed.
Councillors will have the final say at a meeting later this month.
It has also been proposed that there should be a seven per cent rise in Shetland Islands Council (SIC) house rents.
This is said to be the minimum rise in rent needed to maintain the level of services currently provided.
The final decisions on the increases will be made by councillors at a meeting on 25 February.
Increasing council tax by five per cent would see the SIC generate an extra £573,000, bringing this strand of income up to £11.7 million.
For a band D property this would equate to an annual payment of £1,323.64 for 2025/26, which may remain the lowest rate in Scotland.
This would mean the householders of a band D property would have to pay £1.21 extra per week.
There was a council tax freeze in 2024/25 after the Scottish Government offered local authorities a financial incentive to keep the status quo.
Meanwhile the proposed five per cent rise for the coming financial year was the mid-level option presented to the community in a recent consultation.
Around 31 per cent of respondents to the consultation preferred to see no increase in council tax, but the majority were content to see a rise.
Meanwhile in 2024/25 the council approved an increase on second homes council tax to 200 per cent of the charge.
For long term empty property council tax, there will be a further 25 per cent increase for 2025/26 resulting in a total levy increase of 50 per cent, which was previously approved by elected members.
On a wider level a report to councillors says that in order to achieve financial balance in 2025/26 the overall budget – of £178.3 million – will require additional reserves support of £44.8 million.
Of this, £21.8 million is considered “unsustainable”.
The use of reserves is said to be “affordable in the short-term given the overall health of the long-term investments and underlying asset base”.
The harbour account expects a lower level of activity in 2025/26 compared to the previous year, anticipating a surplus in the next financial year of £7.9 million.
Planned capital investment for 2025/26 totals £54.2 million.
Some of the approved projects in the five-year asset investment plan which will see spend in 2025/26 includes the new Fair Isle ferry/harbour scheme, the Knab redevelopment and vehicle and plant maintenance.
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