Council tax in Aberdeenshire to rise by 3%

Residents in Aberdeenshire will see a 3% rise in their council tax for the next financial year.

Aberdeenshire Council agreed the move today and says it's as councillors "seek to balance budgets in the face of growing demand on services and increases to costs."

It means that a Band D property will be charged £1,339.83, a rise of £3.90 per month (if paid over 10 months) before other charges are applied.

The council also agreed to limit an increase to rent charges to 1.5% from April 1 this year, to take account of the pandemic and the rising cost of living for tenants.

Council Leader, Cllr Andy Kille said "We are reminded on a daily basis how difficult it is for many in our communities, with the rising costs of living. We know and appreciate that residents are having to adjust their spending in order to cover the basics.

"As a council, we’re also hit by rising costs – the cost of all our services is rising, way beyond anything we can cope with within our current funding settlement. Indeed, rises to energy costs alone are expected to be in the region of £3.5million next year. We are facing extreme pressure across all our budgets and having to prioritise our most critical services."

Council tax makes up around 20% of the council's income, with the rest coming from Government and income generation. Councillors acknowledged that at a time when costs are rising for households, a rise in council tax was "going to be hard". 

Speaking on behalf of the main opposition, Cllr Gwyneth Petrie recognised the difficulties being faced by families but accepted a 3% rise was needed to continue to support critical local services.

There were two amendments proposed, one for a council tax freeze by Cllr Brian Topping and one for a 5.4% council tax rise by Cllr Martin Ford.

Councillors will meet again on Wednesday, March 9, to set out their budgets for 2022/23.