Orkney Council increases council tax by 15 per cent

Orkney Islands Council has voted to increase council tax rates by 15 per cent.

The rise was backed by 15 of the local authority’s 21 councillors, with six voting against.

An amendment to increase council tax by the lower amount of 11 per cent was defeated at the full council meeting on Tuesday.

A person living in the average band D property will be charged £1,574.60 for council tax in 2025-26, up from the current £1,369.21.

It is the largest council tax increase in Scotland so far, beating Clackmannanshire Council who had already confirmed a 13 per increase.

But councils across Scotland are moving to increase their rates. South Lanarkshire Council has said the lowest increase so far at six per cent.

Orkney Council leader Heather Woodbridge said the decision was about finding the “right balance” and the increase would bring in a “significant” amount of additional cash for services.

The council had proposed an increase of ten per cent last year, but this was ultimately not voted on after the Scottish Government provided additional funding to support a freeze on the tax.

Ministers decided not to enforce a freeze again for next year, but First Minister John Swinney previously said the government had “done its bit” to avoid huge increases.

Speaking to journalists last week, he said: “Local government asked us for a real-terms increase in the core local government settlement and we gave that. We’ve increased local authority funding by a £1bn. But I do acknowledge that there are real challenges in the delivery of public services.”

He added that council tax rises were being fuelled by the UK Government’s decision to increase employer National Insurance contributions, not his own government’s decisions.