Highland Council Tax Rise: How 7 Percent Hike Impacts Your Wallet

Scottish councils will raise council tax a lot. This happens after a government freeze ended in April. Highland Council plans a seven percent increase. Some areas will see much bigger jumps. Orkney may raise it by 15 percent. Moray, Shetland, and others want a ten percent rise.

These tax hikes were expected for a while now. Council groups and the Scottish Government knew change was needed. Highland Council wants to increase taxes by seven percent yearly for the next three years. Five percent covers existing services, while two percent funds new projects like schools.

This tax rise feels like the cost of living crisis. Inflation once hit 11.2 percent, and energy prices also rose. The energy price cap will rise in April, meaning bills increase by £111 yearly to £1849. A typical Band D property’s tax goes up £99.90 to £1527.

So, an average household spends £3376 before other expenses. By 2027/28, tax rates will change. Disability relief rises to over £971, while high-end Band H hits over £4283. Average Band D could be over £1748. Council leaders know people face financial pressure.

Bill Lobban says people will get value, and their tax money will improve infrastructure. He stated investment in people matters. They will invest in schools and roads. He thinks the council is making tough choices wisely. Other areas have even bigger tax increases.

Lobban believes people will see returns on their investment. Raymond Bremner said councils struggle with finances. He noted the UK’s National Insurance caused problems. The Scottish Government covered some of the cost increase. Highland Council avoided passing the full cost to people.

Bremner added past freezes hurt the council. For 18 years, taxes stayed frozen or low. These past actions now impact finances. Other government funds helped in the past. These funds supported capital investments. So, the council faces challenges after years of freezes.