Council tax rise of 9.5% proposed for Western Isles

Western Isles Council is proposing a 9.5% increase in council tax as part of measures to balance its budget.

The move would see Band D properties pay £1,519.38 annually – an increase of £131.82 per year.

A report due to go before the Policy and Resources Committee on February 24 outlines how the Comhairle plans to address a budget shortfall of £4.49m.

The proposed rises would generate around £1.5m for the local authority.

Councillors are also being asked to approve an increase in the additional levy on second homes and long-term empty properties from 200% to 225%, which would generate around £362,000.

Despite receiving an increase of £5.7m in the Scottish Government’s draft settlement announced in January, officers say the effective funding increase for core services amounts to just £525,000 once prior year commitments and ring-fenced funding are accounted for.

Capital funding has also fallen, the budget report notes, with the Comhairle receiving £5.914m compared to £6.733m in 2025/26.

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Around £380,000 in savings proposals have been identified following review by the Budget and Strategy Board and consideration at a Members’ Seminar in February.

The Comhairle proposes balancing its budget for next year by using £250,000 from its uncommitted reserves.

The budget report states that reliance on reserves to balance the budget “places an additional strain on subsequent years, due to the underlying deficit being carried forward,” and describes the position as “unsustainable” because reserves are depleted.

Officers recommend maintaining uncommitted reserves at £3.5m, given the financial uncertainties ahead, including potential inflationary pressures and the prospect of reduced government funding.

A public consultation attracted 1,273 responses, with 89% of respondents saying they felt the council does not receive enough funding from the government.

The survey showed strong support for using reserves and increasing council tax rather than cutting services, with particular concern for protecting arts and culture, education, and health and social care provision.

The report highlights significant financial risks facing the council, including a projected £2.8m funding gap in the Integration Joint Board budget for health and social care, with reserves expected to be exhausted in the current year.

The Comhairle will receive an estimated £3.65m from the Extended Producer Responsibility scheme for waste packaging, though future funding levels remain unclear.

Of this, £1.5m will be used to address cost pressures in the waste service, including an anticipated biodegradable municipal waste ban, with the remaining £2.1m carried forward to 2027-28.

Separately, Scottish Water has announced an 8.67% increase in water and sewerage charges from April 2026, adding an average of £42 per year to household bills. This means a Band D household in the Western Isles would face combined increases of around £174 per year from council tax and water charges.