Members of Comhairle nan Eilean Siar will meet on 24 and 25 February to set the authority’s 2026 to 2027 budget, with proposals on the table for a 9.5 per cent increase in council tax and the use of 7 per cent of available reserves.
The proposed rise would generate around £1.5 million in additional income, with each 1 per cent increase raising approximately £150,000 for the Comhairle.
For households in a Band D property, a 9.5 per cent rise would mean an extra £2.53 per week.
Members will also be asked to agree in principle to a 225 per cent increase in the additional levy on second and long term empty properties, subject to relevant legislation being passed.
Last year councillors unanimously agreed a 7.5 per cent increase.
Even with further rises, the Western Isles currently has the third lowest council tax rate in Scotland.
The proposals follow discussions at budget board meetings, analysis of savings options from services and feedback from the Comhairle’s public budget survey.
Comhairle Leader Paul Steele said the authority’s financial settlement once again falls short of what is required to maintain services.
“The financial settlement Comhairle nan Eilean Siar has received is not enough for us to deliver our services and has once again made a significant increase in Council Tax necessary.
“The consistent real terms reduction in the money available to Comhairle nan Eilean Siar leaves less savings options available to us and means that to set a balanced budget we must look to generate income through increased charges.
“I must emphasise that any decision to increase council tax is not taken lightly, the cost of living in the Western Isles continues to be above the national average with fuel poverty rates amongst the highest in Scotland.”
The proposed budget also includes the use of £250,000 from reserves and around £400,000 of service savings to help balance the books.
If approved, the £250,000 drawdown would leave more than £3.5 million in uncommitted reserves, a level the Comhairle says is necessary to manage future risks and projected funding reductions.
Financial projections suggest a cumulative shortfall of £15.9 million between 2027 and 2030 before savings are applied, as local government’s share of the Scottish Budget is forecast to fall from 26.4 per cent in 2025 to 24.8 per cent by 2028.
On the use of reserves, Councillor Steele added:
“If we allocated all of the reserves this year to balance the budget and reduce the council tax increase it would leave us with nothing in reserve to support the budget setting next year creating a £3.5m gap on top of the expected £4.9m shortfall, likely resulting in major cuts to services and an even larger council tax rise.”
Council Tax Reduction remains available for eligible residents on low incomes, including those receiving benefits or with savings below £16,000.
In order to apply a person can do this by downloading a form by clicking HERE or request a form by emailing benefits@cne-siar.gov.uk or by calling 01851822642.
Comhairle nan Eilean Siar employs Financial Inclusion Officers, based within the Revenues and Benefits section, to help provide advice on a range of interventions that people may be eligible for.
Contact Financial Inclusion Services by emailing inclusion@cne-siar.gov.uk
