Council tax frozen as Highland Council agrees budget
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There will be no increase to council tax this year after Highland Council agreed its budget at a meeting on Thursday.
The deal means that local investment will also increase by £200,000 in the coming financial year, with ward discretionary funding set to rise.
The council says its strategy sets out a new approach which seeks to balance the current financial context with the drivers for economic growth and recovery from the pandemic.
It will also help secure the medium-term financial sustainability of the local authority.
Other parts of the agreement will see a £1.5 million visitor management strategy to help deal with the expected rise in tourists over the next year, as international travel restrictions are expected to continue.
Depute budget leader and Caithness councillor Matthew Reiss added: “I want to thank all those, members and officers, who have worked together to develop a first-class plan which we can be proud of and which is genuinely designed to promote health, wellbeing and prosperity across the region.
"Everyone has been touched in some way by Covid and the impact of the pandemic on our lives, our families, our livelihoods and our mental health. If we can even in some small way, reduce or reverse some of the harms, we will have done some good.”
Members agreed that there will be no increase in council tax rates for the financial year 2021/22, a one-year freeze enabled through Scottish Government funding.
The budget includes sustaining non-earmarked reserves at a minimum of £24.7 million, which Highland Council says provides financial sustainability in the medium term to allow for future risks and enable future investment.
The budget will kickstart an investment plan encompassing a £6 million economic prosperity fund, a £1.5 million visitor management strategy, £2.1 million place-based investment, £200,000 additional local ward discretionary funding and £2.25 million for a recovery, improvement and transformation fund.
In addition, the council’s reprofiled capital plan, as presented to council in January, will see capital investment of £260 million across the region over the next two years.
Depute Leader and the council’s chair of recovery board, Cllr Alasdair Christie moved the budget.
He said: “A more positive government settlement than anticipated, together with in-year financial prudence and building reserves during the previous year, has enabled a stronger foundation to address the many challenges we face moving forward.
“I would like to thank colleagues across the chamber for their support in agreeing the principles behind, as well as the detail within, the budget.
"This is a very positive budget for the Highland region, which will target resources to stimulate growth and recovery, thereby improving health and prosperity in our area.
"A £6 million economic prosperity fund aims to address business growth, opportunities for our young people and tackle unemployment. Our £1.5 million visitor management strategy, place-based investment of £2.1 million and £0.2 million in local grassroots investment will all contribute to mitigating the worst impacts of Covid.”
Leader of the opposition, Cllr Raymond Bremner, added: “These are challenging and unprecedented times for our communities and we will all need to work together to help each other through the difficult times ahead. It is for the benefit of everyone that we continue to work together on a programme of recovery that regenerates the Highland economy and maximises all opportunities in our path.
“We are grateful for the significant funding received from the Scottish Government which is helping us to sustain our communities through this period. The investment agreed here today enables a more positive outlook for the immediate and long-term future of our Highland communities.”
Cllr Jimmy Gray, chair of the Brexit working group and the new chair of corporate resources, said: “A key plank of this plan is about protecting jobs and stimulating economic conditions, investment and skills to create new jobs and opportunities. The public sector is a huge employer and can make a big difference in this respect. The decision to rebuild our reserves will provide more resilience in the challenging times ahead to deal with emergencies.”
