Shetland residents are being invited to share their views on Council Tax to help inform future decisions, as Shetland Islands Council launches a two-week public survey.
The survey is now live and will close on 25 January, with responses being considered by Councillors at a meeting on 29 January. Feedback will help shape a longer-term approach to Council Tax, rather than focusing on a single year’s increase.
Council Leader Emma Macdonald said: “Each year, Councillors have to make difficult decisions about Council Tax and how we fund the services people rely on. This year, we’ve asked officers to develop a long-term strategy to guide the overall direction Council Tax should take and the role it should play in supporting the Council’s budget. We’re now asking for your views to help inform this process.”
Unlike many councils in Scotland, Shetland Islands Council currently relies far more on financial reserves than Council Tax to balance its budget. Around £12.6 million is raised each year from Council Tax, while around £43.7 million is currently being drawn from reserves to support spending.
Council Tax levels in Shetland are consistently among the lowest in Scotland. In 2025/26, Band D Council Tax in Shetland is £1,387, compared to a Scottish average of £1,543 — around 11% lower and the second lowest in the country. While this helps keep household costs down, it also means less income is raised locally to support services.
Executive Manager - Finance, Paul Fraser, explained: “In most councils, Council Tax is a key tool to balance the budget, so the decision is largely about setting a rate to fill the gap between planned spending and income.
“In Shetland, it’s a bit trickier — we rely much more heavily on reserves, so Councillors have to consider not just the immediate budget, but how Council Tax contributes to our finances over the longer term. That’s why a long-term strategy is so important.”
The survey asks residents about the principles that should guide future Council Tax decisions and the outcomes they feel should be prioritised. It does not ask people to comment on a specific Council Tax rate for the coming year. A small number of questions also explore how well residents feel informed about Council Tax and how it is used, to help improve future communication.
The survey is available online at https://www.shetland.gov.uk/budget-finance/council-tax-strategy-survey with paper copies available from Council Headquarters at 8 North Ness.
Responses will be shared with Councillors alongside other information and feedback at the 29 January meeting, to help inform decisions on Council Tax in the years ahead.