Council tax rise of 9.5% proposed for the Western Isles

A council tax increase of 9.5% has been proposed for households in the Western Isles.

Comhairle nan Eilean Siar's plan would see the annual bill for an average band D property rise by £131.82 to £1,519.38.

The local authority is facing a budget shortfall of £4.49m in its 2026-27 budget.

In a report to councillors, officials said the council tax rise would generate about an extra £1.5m for the comhairle.

A council tax increase of 7.5% was agreed last year.

The indicative figure for the latest increase does not include council tax relief.

Councillors are also being asked to approve a rise in the additional levy on second homes and long-term empty properties from 200% to 225%.

This would generate about £362,000 – subject to Scottish Parliament approval of legislation currently before MSPs.

A report to the comhairle's policy and resources committee said about £380,000 in proposed savings had also been identified, and that the local authority proposed using £250,000 of its uncommitted reserves to help balance its budget.

The comhairle's plans to increase its revenue include a 25% increase on bus fares.

This would see a single adult fare for journeys up to one mile rise from £1.10 to £1.40.

Journeys of up to five miles (8km) would increase from £1.60 to £2.00, while a 10 to 12-mile (16-19km) trip would go from £2.50 to £3.20.

The longest journeys of 56 miles (90km) and over would rise from £7.80 to £9.80.

However, a Scottish government £2 fare cap pilot is being rolled out across the Highlands and Islands, which would limit the impact on longer journeys.

The 12-month, £10 million scheme was launched in Shetland on 30 January and is to be extended to the Western Isles at a later date.

During the pilot, no single adult or child fare would exceed £2.

The comhairle's other budget plans include the first increase in 20 years in charges for using a community alarm service.

The service provides support to almost 1,000 vulnerable and older people across the islands, allowing them to call for help at the touch of a button.

Under the comhairle's plans the weekly charge would rise from £1.50 to £3.

The report said the increase was needed to offset the costs of upgrades to the system.

Reporting by local democracy journalist Peter Urpeth.

The proposed council tax increase in the Western Isles is the biggest to be made public so far.

The 9.5% is some three times the current rate of inflation.

Last week Scottish Borders Council proposed a rise of 8.5%.

Any substantial rises will be a disappointment to the Scottish government which had expressed a hope large increases would not be necessary.

This year councillors have complete freedom to put up the charge by whatever figure they agree.

As was the case last year, the Scottish government is making no attempt to freeze the charge or limit increases.

One important question just now is whether a trend emerges. Will proposals for rises significantly above inflation be the exceptions or the rule?

The other question concerns how local residents may feel.

The proposed increase in the Western Isles only goes some way towards closing the authority's funding cap - the difference between rising costs and rising income.

The rest will need to be closed in some other way: increased charges, changes to how things are done, perhaps straightforward cuts.

So might local residents support significant increases if they help avoid cuts or, perhaps, lead to actual improvements in some services?

Or might they feel strongly that large increases are the wrong decision?

Every administration across Scotland will be wrestling with that dilemma over the next few weeks.