Orkney votes to delay council tax decision

Orkney Islands Council has delayed its decision on whether to freeze council tax until next month.

The Scottish government has offered councils extra funding to cover the cost of a council tax freeze.

But councillors had been set to reject the funding and vote for a 10% increase in order to invest more in services.

However, it has said it could accept the funding if the council has the freedom to spend extra Scottish government money as it chooses.

If the government confirms the council has that power, the tax will be frozen - otherwise it will go up by 10%.

The council has given the government until 10 March to respond formally, ahead of a final vote the following day.

The island council, Scotland's smallest local authority, faces a £27.1m funding gap over the next five years.

Councillors also voted to use £20m from the authority's reserves in the coming year, almost three times the amount used last year.

The recommendation to raise council tax by 10% was replaced during a meeting of the council's resources committee.

It was replaced by a commitment to freeze the council tax upon confirmation from the Scottish government that the additional funding would be made available "without restrictions."

It added that in this event, the chief executive - in consultation with others - would determine if the funding was "sufficient to maintain the council tax at 2023/24 levels and deliver a balanced budget."

It concluded that if this confirmation was not received by 10 March, it would vote to increase council tax by 10%.

Argyll and Bute Council's Conservative, Lib Dem and independent coalition was the first to defy the government when it voted for a 10% rise last week.

First Minister Humza Yousaf has called the rises "unjustifiable" and said councils passing them would "have to answer to their constituents."

Scotland's 32 local authorities have already been offered £147m as compensation for freezing council tax.

Meanwhile the ruling group on Inverclyde Council is proposing an 8.2% rise in the council tax.

Labour is the largest party on the council and governs with support from two independents.

But the group doesn't have an overall majority so the result will also depend on how others vote at Thursday's meeting.

The group's budget proposals also include a 6% council tax rise next year.

The Labour opposition group on Falkirk Council will table proposals for a rise when the council sets its budget tomorrow. However, the SNP-led administration supports a freeze.