A near 10% rise in council tax is being proposed for the Western Isles, with households warned to expect combined annual bill increases of around £174 once higher water charges are included.
Comhairle nan Eilean Siar is proposing a 9.5% increase in council tax for 2026/27 as it moves to plug a £4.49m budget shortfall. For a Band D household, the rise would take the annual bill to £1,519.38, up £131.82 a year.
Officers estimate the council tax hike would generate about £1.5m for the authority. Councillors will consider the plans at a meeting of the Policy and Resources Committee on 24 February.
Alongside the main council tax rise, councillors are being asked to approve a higher premium on second homes and long‑term empty properties. The additional levy would increase from 200% to 225%, raising an estimated £362,000.
The move is part of a wider package aimed at protecting frontline services while boosting income. It follows a review by the Budget and Strategy Board and discussions at a Members’ Seminar earlier this month.
The council’s budget report notes that, although the Scottish Government’s draft settlement announced in January includes a £5.7m cash increase, the effective uplift for core services is only around £525,000 once prior commitments and ring‑fenced funding are stripped out. Capital funding is also down, with the Comhairle due to receive £5.914m compared with £6.733m in 2025/26.
Around £380,000 in savings have been identified so far, but officers warn that reserves are being stretched. The plan to close the remaining gap includes using £250,000 from uncommitted reserves, a tactic the report describes as “unsustainable” because it carries an underlying deficit into future years.
Officers recommend maintaining uncommitted reserves at £3.5m to guard against financial uncertainty. Risks highlighted include potential inflationary pressures, further reductions in government support and a projected £2.8m funding gap in the Integration Joint Board budget for health and social care, where reserves are expected to be exhausted this year.
The Comhairle is also expecting around £3.65m from the UK‑wide Extended Producer Responsibility scheme for waste packaging, but the long‑term profile of this income remains unclear. Of the initial allocation, £1.5m is earmarked to deal with cost pressures in the waste service, including an anticipated biodegradable municipal waste ban, with £2.1m to be carried forward to 2027‑28.
A public consultation on the budget attracted 1,273 responses, revealing strong dissatisfaction with the current funding settlement. Some 89% of respondents said they do not believe the council receives enough money from government.
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Most participants favoured using reserves and raising council tax rather than cutting services, with particular concern expressed about protecting arts and culture, education, and health and social care. The council report says this feedback has shaped its recommendation to increase local taxation while seeking to safeguard key services.
On top of the council tax changes, Scottish Water has announced an 8.67% increase in water and sewerage charges from April 2026. This will add an average of £42 per year to household bills.
Taken together, a Band D household in the Western Isles faces an overall increase of around £174 a year in combined council tax and water charges under the plans. Councillors will decide later this month whether to approve the measures as they attempt to stabilise the islands’ finances in the face of mounting pressures.
