Council Asked To Consider 2.5% Council Tax Rise

Highland Councillors will be asked to approve a rise of £28 at Band D, a 2.5 % increase, when they meet on Thursday (8 February) to set the Council Tax for 2007-2008. In setting a budget of £517 million, the Council is asked to agree the following charges in 2007-2008: -

In setting the budget, the Council agreed a 5.3% increase on the £491 million of 2006-07.  Members particularly welcomed provision of £1 million in the budget to deal with the effects of climate change, minimising flooding, allowing improvements in gully gleaning, general drainage maintenance and watercourse maintenance.

At the same time, measures to balance the budget include £12.3 million in savings and reductions, of which £7.164 million are efficiency savings. These efficiency savings exceed our share of the national target set by the Scottish Executive of £2.559 million.
Normally, the Council would be asked to consider an indicative tax charge for the following two financial years. As a result of the latest Spending Review outcome being delayed, the Council does not know the grant settlement for 2008/9 and 2009/2010 at this time and as a result is not being asked to declare an indicative tax increase for these two years.

Note:

In setting a revenue budget of £517 million for 2007-08, the Council is spending an additional £26 million ( 5.3%) on a package of frontline services, such as caring for older people, easing delayed discharge, and increasing spending on free personal care, school buildings, school transport, energy saving and flooding prevention.  At the same time,
there will be a programme of efficiencies and savings, totalling £12 million.

The budget is funded by:
• £296.7 million of revenue support grant from the Scottish Executive;
• £102.3 million of Council Tax income.
• £77.9 million of non-domestic rate income;
• £37.9 million of specific grants from the Executive;

The budget allows for:
• additional gross spending of £2.7 million for the provision of the first of 11 new schools under the PPP2 programme;
• provision for energy price increases at £2.2 million;
• pension increases for teaching and non-teaching staff £1.6 million.
• waste management contract increases and landfill tax costs £1.4 million;
• pressures of  homelessness and ‘Supporting People’ on Housing Services at £1.2 million;
• increased drainage and grounds maintenances costs £1.04 million;
• £1 million towards class size reduction; Better Behaviour Project and the Parental Involvement Bill;
• £900,000 of Changing Children’s Services Funds within Education, Culture and Sport;
• an increase in the contingency for job evaluation £800,000;
• increases in the costs of school transport contract costs £700,000;
• the increasing demand for learning disability packages on Social Work £200,000;
• the introduction of an e-planning system at £100,000;
• continuing to promote benefits uptake £60,000;

Within Social Work Services, additional spending goes towards:
• £1.1 million providing for the increasing number of older people;
• £900,000 Care Home Fees increase in provision;
• £400,000 on training.