Council tax rise on the cards

Council tax is expected to rise by three per cent in Argyll and Bute as part of the council budget, having been frozen for a year.

The increase has been built into planning for the council’s forthcoming budget by its executive director as decision time looms.

No increase was made to council tax in the area in the 2021/22 financial year due to the impact of the Covid pandemic.

The Scottish Government recently removed the three per cent cap on council tax increases, but no indication of a higher rise has been given in Argyll and Bute.

The subject was on the agenda at the authority’s policy and resources committee during its virtual meeting yesterday (Thursday February 17), to be followed up by discussion by the full council on Thursday February 24 when the authority’s 2022/23 budget will be set.

Executive director Kirsty Flanagan said: ‘The council tax budget for 2021/22 was set at £52.859m.

‘There was a council tax freeze in 2021/22 and due to the impact of Covid-19 during 2020/21 it was considered prudent not to account for any council tax growth in 2021/22. This is the starting position for 2022/23.

‘In terms of the growth in the council tax base, throughout the year a growth of 0.25 per cent has been assumed within the mid-range scenario (0.1 per cent in worst case and 0.4 per cent in best case).

‘However, an assessment was carried out in December 2021 and the growth in 2021/22 has been much better than estimated.

‘It is considered that 1.5 per cent could be assumed for 2022/23, with the growth in future years dropped back down to between 0.25 per cent and 0.75 per cent (mid-range 0.5 per cent) pending a further assessment during 2022/23.

‘The 1.5 per cent growth in 2022/23 amounts to an estimated increase of £0.793 million.

‘There is an assumption of an approval of a three per cent increase in council tax in 2022/23 and a three per cent increase in council tax in the best case, midrange and worst case scenarios in the years beyond 2022/23.’

The report also states that a three per cent rise in fees and charges is also built into the budget planning process, giving additional income of nearly £400,000.

A number of savings options are also under consideration, having been identified by officers and presented to a budget working group (BWG) of councillors.

Ms Flanagan added: ‘The BWG’s role was to engage with officers and provide a sounding board to assist in the development and identification of savings options.

‘It does not have any decision-making authority but can report to and make recommendations to either the council or the policy and resources committee.

‘Its primary purpose was to assist in the savings identification process and provide a degree of scrutiny over options as they are being developed.’

‘There is an assumption of an approval of three per cent increase in council tax in 2022/23 and ... in the years beyond 2022/23’