Council tax looks set to rise by 5pc But council will still have funding gap of £916,000
Stirling Council looks set to approve a council tax rise of almost five per cent tomorrow (Thursday) - but won’t yet set its wider 2020/21 budget.
The SNP/Labour administration is to move a 4.84 per cent increase - the maximum allowed without incurring an equivalent grant penalty from the Scottish Government.
Stirling Council officials estimate the funding gap prior to any council tax increase or savings proposals is around £4.5 million.
Imposing the maximum council tax increase would reduce the figure by £916,000 before any budget savings.
If approved, the current band D council tax level of £1,282.23 would rise to £1,344.29. The lowest band (A) would rise from £854.82 to £896.19 and the highest (H) from £3,141.46 to £3,293.51.
With a three per cent rise council tax would increase to £1,320.70, with the band A going from £854.82 to £880.46 a year, and the highest band (H) increasing by £94.24 to £3,235.70.
Legally the council has to determine its council tax level by March 11, however the UK Government budget is only due to be confirmed that same day.
The Westminster situation has had a knock-on effect on the Scottish Government which earlier this month set a draft budget and local government finance settlement in order to allow councils to meet their statutory deadline.
These may still be amended by Holyrood, however, and Stirling Council officials hope there is still a possibility of additional funding being made available to councils.
The uncertainties have led Provost Christine Simpson to ask for Stirling’s council tax be set at the special meeting tomorrow - with a further meeting being convened on March 12 when the general fund revenue budget and capital programme will be discussed.
Opposition Tory group leader Councillor Neil Benny said, however: “The Scottish Government continue to cut the money councils need to spend on vital services such as care, education and road repairs. They are doing this while their own budget is growing.
“The council’s SNP led administration go for the maximum council tax rise without questioning this or demanding the real reform at the council needed. They meekly accept that Stirling’s residents are having to cough up yet again.
“Scottish Conservatives and other parties are demanding more money for councils. Should that happen the council tax rise could have been lower. They should agree to refund what they don’t need if more money is forced out of the Scottish Government.”
Stirling’s housing revenue account budget and housing investment programme including an expected council rent increase of 3.2 per cent - will also be decided at tomorrow’s meeting as officials say government funding support will not have a major influence on those plans.
Consultation with the local Housing Advisory Group presented two options to tenants over rent increases - a rise of either 3.2 per cent or four per cent. The first option would fund existing cost pressures on housing services for the coming year, while the second option would help expand solar power and battery storage to reduce tenants’ energy bills and fuel poverty, as well as address climate and environmental concerns.
The HAG has opted for the 3.2 per cent increase, with council officials recommending this be the level approved.
Last year’s budget offered three rent rise choices with the lowest of 3.3 per cent chosen by tenants. This was, however, overridden by the council who opted for the middle increase of four per cent leading to accusations by tenants that they had been “ignored”.
They meekly accept that Stirling’s residents are having to cough up yet again Cllr Neil Benny