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.
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