Freeze on Council Tax Charges in Orkney

News From Orkney Islands Council

Elected Members have agreed Orkney Islands Council’s budget for the next financial year.

Councillors decided that £89.4 million (£89,392,500) should be spent on running Council services in 2021 – 2022 and that savings of £476,600 should be found during the year ahead.

This is in addition to a number of savings already agreed by the Council for 2021–2022. These amount to £97,100.

Councillors also agreed:

  • A freeze on increasing Council Tax charges.
  • A 1 per cent increase in funding for voluntary and other Third Sector organisations.
  • Establishment of a £2.1 million Roads and Paths Repairs and Renewals Fund, using a contribution from OIC’s general reserves.
  • That existing fees and charges for most Council services should increase by at least 3% from 1 April. Exceptions would include charges that are set by legislation.
  • That a contribution of £7.5 million (£7,469,900) should come from the Strategic Reserve Fund to support services during the year ahead – the highest draw to date made on the Council’s reserves.

OIC’s funding allocation from the Scottish Government for the year ahead currently amounts to £82.7 million.

If agreed by Parliament, this will include £7.9 million in funding for Orkney’s inter-island ferry service, an increase on the allocation of £5.3 million awarded for 2020-2021 which would ensure the Council is fully funded to run the internal ferry services during the year ahead, allow the introduction of further all-year-round Sunday services and a Road Equivalent Tariff (RET) fare structure on local ferry routes.

The measures agreed will result in a reduction of the Council’s workforce by the equivalent of two full time equivalent posts – all of which are currently vacant.

The following Council Tax charges will apply in Orkney for the year ahead:

  • Council Tax Band A. £805.65.
  • Council Tax Band B. £939.93.
  • Council Tax Band C. £1074.20.
  • Council Tax Band D. £1208.48.
  • Council Tax Band E. £1587.81.
  • Council Tax Band F. £1963.78.
  • Council Tax Band G. £2366.61.
  • Council Tax Band H. £2960.78.

Households with only one adult living in the property will continue to receive a discount of 25% on the charges detailed above.

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