‘Scathing cuts’ feared following council tax freeze announcement

A freeze on council tax could force Orkney Islands Council (OIC) to make “really scathing cuts”, unless the Scottish Government provides “substantial central money to fund this.”

This is according to Councillor John Ross Scott, who has spoken out following First Minister Humza Yousaf’s announcement at his party’s annual conference in Aberdeen today (Tuesday, October 17).

Along with other measures, Mr Yousaf said, the freeze in council tax would assist people through the cost of living crisis.

However, Councillor Scott has claimed it could push councils across Scotland, including Orkney, “closer to the financial abyss.”

Meanwhile, leader of OIC, Councillor James Stockan, has described the announcement as a “shock”, and he has called on the Government to “urgently outline” how the initiative will be funded.

He said that, at meeting of the policy and resources committee in June, OIC approved a three-year strategy, which would have included a ten per cent rise in council tax in the forthcoming financial year.

This was done, Councillor Stockan said, “to support our vital public services.”

“We expect that if this proposed council tax freeze goes ahead then the Scottish Government will cover every penny of the funds we would have raised through a 10 per cent rise. Anything less is completely unacceptable,” he added.

“Orkney Islands Council is not receiving the funding it requires to deliver and maintain essential lifeline services for our communities while it appears resources are being found to fund regressive tax breaks for higher rate taxpayers in the Central Belt of Scotland through a council tax freeze.

“In his speech, the First Minister said that the Government will do everything they can to support public services through these tough times. I ask the government to stick to their word so we avoid further public service cuts in Orkney.”

Councillor John Ross Scott, of Kirkwall East, suggested the move would make bringing together the council budget for 2024-25 that much harder.

“A lot of soul searching has been going on over the past few months on how Orkney Islands Council is to bridge the funding gap we have of £17million over the next three years,” he said.

“The public have not, as yet, been touched by this but charges on just about everything will be set to rise and services will also need to be cut to make ends meet.

“While the general public will be jubilant about a freeze on council tax it is a populist move that will reduce the amount of money councils can raise and drive local government closer to the financial abyss.

“We had planned at OIC to raise our council tax by 10 per cent again next year, to try and get Orkney positioned about the national average and bring in some of the money we desperately need.

“Now it is likely, if we do not get substantial central money to fund this, we will have to make really scathing cuts that will impinge on more folk.

“In past years when council tax was frozen, council’s got funding in line with inflation. With inflation currently around seven per cent, if we get anything we are likely to be sold short.”