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Orkney's council tax could rise by 15% Orkney's council tax could rise by 15%
(32 minutes later)
Orkney Islands Council will be asked to vote on the recommendation at a later date A full meeting of Orkney Islands Council will be asked to vote on the recommendation at a later date
Councillors in Orkney have voted narrowly in favour of a proposed 15% increase in the islands' council tax. Councillors in Orkney have voted narrowly in favour of a proposed 15% increase in the islands' council tax - after rejecting a suggested rise of 20%.
Officials had recommended an 11% rise, but councillors voted 11-10 in favour of the larger increase suggested by Councillor Kristopher Leask. Officials had recommended putting the rate up by 11%, but councillors voted 11-10 in favour of 15%.
A proposed 20% rise was rejected. A full meeting of the council will be asked to approve the rate.
The 15% increase must be approved at the next meeting of the full council. Shetland and Western Isles councils are due to make decisions on their rates later on Tuesday. Shetland Islands Council has agreed to a 10%, increase in bills while Western Isles authority Comhairle nan Eilean Siar is expected to agree to an 8% rise.
Shetland islanders could see their bills rise by 10% For an average band D property, the increases would mean an annual bill of:
If the Orkney council tax increase is approved it would take the bill of average band D property up to £1,574.59, which is an annual rise of £205. Orkney - £1,574.59
Western Isles local authority Comhairle nan Eilean Siar has recommended an 8% increase. Shetland - £1,387
Shetland Islands Council has proposed a 10% rise. Western Isles - £1,394.01
All three island councils had previously frozen council tax levels. Shetland islanders will see their bills rise by 10%
In Orkney, the proposed increase is forecast to raise an extra £1.7m for the council.
It has identified the need for £700,000 savings, increasing charges for its services by 10% and introducing new charges for services such as telecare.
It faces using up to £20m from its reserve fund to maintain its services.
An 8% rise has been proposed in the Western IslesAn 8% rise has been proposed in the Western Isles
Shetland's deputy leader Gary Robinson said the 10% rise would help the island authority to get back to a more sustainable position.
He said Shetland had had the lowest council tax rate in Scotland for years.
Council officials had been recommending a rise of 5%.
The local authority is still expected to need to draw about £36m from its reserves to balance its new budget.