Aberdeenshire Council has agreed to increase its council tax by 3% for the year ahead.
The rise will see residents in a band D property pay £1,339.83 per year – slightly over the Scottish average of £1,308.
The increase will mean households across the region will have to pay 75p extra per week and £39 over the year.
The decision, made at a meeting of Full Council on Wednesday, February 23, will enable the local authority to build its financial base ahead of its general revenue budget meeting next month.
Money collected from council tax payments make up 20% of Aberdeenshire Council’s annual budget with the rest of the cash collected through income generation and Scottish Government grants.
Increased cost of living was taken into consideration
Council leader, councillor Andy Kille, said: “We are reminded on a daily basis how difficult it is for many in our communities with the rising cost of living, in particular the higher costs of food and heating.
“We know and appreciate that residents are having to adjust their spending in order to cover the basics.
“As a council, we are also hit by rising costs, the costs of all our services is rising. The council’s energy costs alone are predicted to rise by some £3.5 million this coming year.
“We are facing extreme pressures across all our budgets and having to prioritise our most critical services.”
He added: “We know our residents have been hit hard by the cost of living and we have carefully factored this into a well below inflation proposal.
“I know that any rise in council tax would not be universally welcomed but I am confident in setting council tax today provides clarity and reassurance for the people of Aberdeenshire, allows us all to plan for the year ahead and will be an integral part of the council’s medium term financial strategy.”
Around 2.5% of the council tax rise will be used by the local authority to deliver many of its core services including education, waste, benefits and planning.
Councillor Kille said: “Over the past few years our teams have stepped up to provide critical support, to respond to both the pandemic and the terrible storms that have wreaked havoc across our communities.
“So for anyone asking what they get for their money I can provide reassurance of the value for money on the myriad of services available to all of our residents each and every day.”
Council tax rise used to pay for ‘essential’ upgrades to buildings and roads
The council leader also explained that 0.5% of council tax payments will go towards Aberdeenshire Council’s infrastructure fund that will be used to provide essential upgrades and improvements to buildings, roads and bridges across the region.
Despite the rise in council tax residents living in Band A to D properties will receive a £150 rebate from the Scottish Government.
New council tax figures for 2022/23
Band A – £893.22
Band B – £1,042.09
Band C – £1,190.96
Band D – £1,339.83
Band E – £1,760.39
Band F – £2,177.22
Band G – £2,623.83
Band H – £3,282.58
Aberdeenshire Council follows in the footsteps of other local authorities with Moray Council agreeing to the same rise earlier this week.
Councillor Brian Topping of the Alba Party proposed a freeze on council tax while Martin Ford of the Democratic Independent and Green Group put forward a suggestion to increase council tax by 5.4%.
However, following two separate votes, the motion to move the 3% rise was supported by 57 councillors to three for the freeze and the increase will now be put in place.