Steven McKenzie and Nichola Rutherford report for BBC Scotland News that the final local authority in Scotland is set to determine its budget and council tax rates for the upcoming year. Councillors from East Dunbartonshire, Falkirk, Highland, and Inverclyde are scheduled to convene to deliberate on proposed tax increases and service reductions. This follows a series of notable council tax hikes in various Scottish local authorities, with Orkney Islands Council recently approving a 15% rise, the highest in the country.
Over the past two decades, council tax rates in Scotland have largely remained stagnant or capped. However, this year, local authorities are looking towards above-inflation increases to maintain financial equilibrium. The funds generated are vital for sustaining essential local services ranging from education and social welfare to waste management and infrastructure upkeep. Despite expressing tentative approval of the funding settlement from the Scottish government, leaders acknowledged the need to make challenging decisions in light of a £100 million shortfall resulting from a nationwide surge in employer National Insurance costs.
Falkirk council leaders have asserted that a substantial tax increase is necessary to address escalating expenses, encompassing wage adjustments and heightened National Insurance contributions. Various tax options have been presented to councillors, ranging from a 13.69% proposal by the ruling SNP administration to a 10% option endorsed by the Conservative faction. The SNP group emphasized that their budget allocations would deliver over £486 million to services throughout Falkirk district, underscoring the escalating operational expenses and external financial pressures informing their budgetary decisions.
Notably, East Dunbartonshire is considering a 13% council tax rise, which would translate to an annual bill of £1,415.66 for residents in band D properties. The local authority is also contemplating cost-saving measures such as reductions in school crossing patrols and cleaning services for public buildings. A public consultation on the proposed budget revealed a preference for a 3% tax increase among the majority of respondents, emphasizing a desire for enhanced investments in older school infrastructures and educational outcomes. Last year, Inverclyde Council initially opposed a national council tax freeze initiative before receiving additional funding to offset a projected 8.2% hike in charges. This year, councillors are deliberating over increases ranging from 7.75% to 8.5%, alongside the selection of a new council leader following Robert Moran’s interim tenure due to health reasons
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