The Highland Council have agreed to increase council tax by 4.84% to support roads investment.
Councillors voted in favour of the increase paving the way for a major investment in roads with an extra £20 million capital announced in its budget proposals for the year 2020/21.
To support the investment in roads there will be an increase in Council Tax by 4.84% (just over £1 per week for those households on Band D). Of the rise, 3% will be used to balance the budget and 1.84% for investing in roads.
Council Tax Reduction recipients will continue to be protected (generally Bands A-C).
The increase would enable a fund of £20 million for capital schemes and an additional £1.3 million of annual revenue for road maintenance.
The budget will see an increase in the Council’s Reserves to improve the Council’s medium to long term financial strategy and a more resilient position to address a number of challenges and risks which lie ahead.
Council also agreed a proposal to invest £1 million of additional funding in a “Highland Deal for a sustainable future” – a Skills for Work Charter which will develop a range of initiatives and opportunities to retain young people, address poverty and reverse depopulation trends in rural areas. A further £0.5 million is to be earmarked for rural transport projects.
Budget Leader Alister Mackinnon said: “This budget is a road to recovery for the Council. We need to build our Reserves for a sustainable future; make the best use of our resources to transform the Council; build our resilience; and make substantial improvement to our Roads.
“These are ambitious budget proposals which also seek to invest in people, skills, plant and places for a more sustainable future.”
Leader of the Council Margaret Davidson said: “The reduction in available Capital money is a huge issue for us and will mean we have difficult choices to make, so this investment strategy for our roads will be tremendously important for people in the Highlands.”
Depute Leader Alasdair Christie said: “A budget should not just be numbers on a page but should embody our values – and this budget does just that.
“I would like to thank members across the chamber for their contribution and support in creating a council budget which drive improvement, provide financial stability, and go some way to address poverty and rural deprivation delivering positive outcomes for people in the Highlands.”
