How the three per cent Highland hike in Council Tax will hit your pocket amid a cost of living crisis spurred on by sky-rocketing energy bills and inflation, so how affordable will it really be for hard-pressed families?
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One of the keynote items in the Highland Council’s Budget which was agreed earlier today was a three per cent rise in Council Tax.
The local authority touted it as a meagre 77p more a week or just over £40 a year.
Few wish to pay more taxes than they do and local authorities are in a difficult financial position amid what they say is a basic flat-cash settlement from the Scottish Government.
Despite having a £642 million budget for the year the council finances can be hit hard when it comes to inflationary pressures – estimated at over £8 million this year.
Council Tax is determined by Bands ranging from the Disabled Reduction and from A to H – with H being the highest.
That is based on the value of your property as classed by the local assessor back on April Fools day 1991 – more than 30 years ago.
What it means in pounds and pence according to council figures is that for those paying the new rate of tax will see a rise of anything from £22 a year to as high as £97 a year.
What councillors agreed to looks like this – tap on each line to see the annual Council Tax bill:
However, that does not tell the whole story because this was the second rise – Council Tax also went up in 2019/20.
The reason for the hike then was to borrow £20 million to invest in roads maintenance.
It was the first time the Scottish Government lifted the cap that had been in place on the tax since the SNP took power in 2007.
Last year, extra cash was provided by the government so hard hit families struggling through the pandemic and its economic impacts did not get another financial blow.
But comparing the figures from before the last two rises reveals bills have gone up in three years by an average of £3.33 a week.
How the public feels about that could set the tone for the May council elections which will take place just a month after the rises take effect.
For more on the council budget and what it means for locals keep checking our website
