Orkney rejects 7.7% council tax rise proposal in favour of 3%

A proposed 7.7% council tax rise in Orkney has been rejected in favour of a 3% increase.

Local authorities have been given complete freedom to set rates in 2022 after a council-tax freeze last year.

Orkney councillors decided a possible 7.7% rise would not be fair on the population, but also that a freeze was not economically realistic.

A final vote favoured a 3% rise over 4% by 14 votes to six. The new Band D figure is £1,244.73, up from £1,208.48.

Meanwhile, Moray Council also agreed to a 3% rise in council tax.

That will mean a band D charge of £1,362.56, up from £1,322.87.

Members voted 14 to 10 in favour of the increase, instead of a freeze.

As part of the Scottish government budget, Finance Secretary Kate Forbes announced a £150 discount for homes in bands A to D amid the cost-of-living crisis and rising energy bills.

The Scottish government had previously either frozen council tax completely or limited councils to increasing their tax rate by 3%.

However, in 2017 the government changed the basis on which properties were assessed leading to those in bands E to H being charged more.

Last week, Shetland Islands Council took the decision to freeze council tax for 2022/23.

Aberdeenshire Council is due to make a decision on Wednesday, followed by Aberdeen City Council on 7 March.