Council tax rise of 3% agreed by Highland councillors

Households in the Highlands are set to see rates for properties rise above the level set in 2007

Highland councillors have approved a 3% increase in the basic rate of council tax for 2017-18.

A meeting of the full council in Inverness also set Highland Council's budget for the new financial year.

The local authority's ruling administration has said that raising council tax would generate more than £3.5m in extra income.

This would help Highland Council to reduce its funding gap of £20m to about £10m.

Savings agreed in December 2014 and February last year would also assist the local authority in narrowing this gap between its required expenditure and income.

Highland Council, along with all of Scotland's other local authorities, was given the option this year to raise the basic rate of council tax by up to 3%.

This means rates for all properties could rise above the level set in 2007 for the first time, with the end of the Scottish government's long-running council tax freeze policy.