Freeze on Council Tax Charges in Orkney

By theorkneynews on March 4, 2021

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: