Councillors to mull 9% council tax rise to balance budget

The authority will set its budget for the coming financial year on Thursday February 27, with a gap of £11 million being projected prior to implementing any savings options.

It is estimated in the report that the figure would reduce to £2.4m based on increased fees and charges, savings options and an indicative five per cent council tax increase.

In order to get to a balanced budget, the council would need to increase council tax to 8.9 per cent. Officers are recommending councillors vote for this increase for band D.

The council initially increased council tax by 10 per cent for the 2024/25 financial year, going against a pledge by then first minister Humza Yousaf that the charge would be frozen.

However, it did later freeze council tax after additional funding became available. The administration of the council then changed hands in April.

The budgeting pack has now been published ahead of a meeting of the council’s policy and resources committee on Thursday, February 20.

The report said: “The setting of council tax should happen on the same day as the council sets its revenue budget as once all proposals are considered, council tax is the balancing figure.

“The gap outlined in [the report] is based on a five per cent council tax increase (this is the assumption that has been in the budget outlook during the year).

“In order to get to a balanced budget, council will need to increase council tax to 8.9 per cent.

“The alternative to increasing council tax further is that the council would need to fund the gap using reserves or other funds held, which would be a one-off fix, however, members need to be mindful of the significant gap in future years as well as the pressures facing the capital plan.”

The report added: “All proposals included within this report result in a balanced budget for 2025/26.

“There remains a significant budget gap in future years and officers will continue to explore options to generate future savings or additional income.”