Highland Council is already looking at ways to combat an anticipated funding deficit of up to £20million next year.
And the authority’s Budget Leader Bill Fernie said a possible council tax increase of just 3%, following Nicola Sturgeon’s announcement yesterday of an end to the tax freeze, would not be sufficient to shield services from cuts.
Mr Fernie said: “That doesn’t go anywhere towards closing what is likely to be another big budget gap.
“We can only expect that the grant settlement which the Scottish Government announces this December will affect councils in a similar way that the last one did.
“I am fairly disappointed that this [3%] has been decided on as an appropriate level.”
Mr Fernie added that public consultation had revealed that many residents would be ready to pay between 5% and 10% more in council tax.
But he said that even imposing an increase of that sum would still leave the local authority financially adrift.
The independent Wick representative added: “That would not make up the shortfall in our budget, we would still be looking at various cuts.”
Highland Council announced that it was considering defying the Scottish Government by increasing the tax earlier this year.
But after Moray Council was faced with strict sanctions if it had proceeded with plans to unfreeze the levy, Highland members decided against pursuing that as an option.