Flooding is a major issue for many areas of the Highlands

The budget will be debated on Thursday, before the council tax is set the following week.

Councillors had previously discussed a 2.5% rise in bills, assuming Highland's budget was agreed at �509m.

They will be told that �517m will allow for additional spending on education, social work and flood defences.

Meanwhile, a new climate change working group is to help the authority make energy efficiency savings.

Its members will also investigate the impact on future policy from global warming.

Over the next few years we expect the government's financial settlements to be very tight and we continue a programme of efficiencies and savings Councillor Michael Foxley

The area has been a recent victim of extreme weather, with floods badly affecting various parts of the region last October and December.

Michael Foxley, vice chairman of the council's budget working group, said a package of measures will be recommended to councillors in an effort to balance growth in education, social work, transport, environmental and community services budgets with savings.

He said: "Without the additional �5.48m funding provided by the Scottish Executive this would have been a very difficult budget year and this has allowed us to put additional funding into social work, education and flood defences."

He added: "Over the next few years we expect the government's financial settlements to be very tight and we continue a programme of efficiencies and savings.