Neighbours face big council tax hike

Council tax is set to rise by 8.2 per cent in neighbouring Inverclyde this coming financial year – with the rate frozen in Renfrewshire.

It means people in the likes of Greenock, Gourock and Port Glasgow could see an increase in their bills with the Band D level rising to £1,547.01.

By comparison, residents in Paisley, Johnstone and elsewhere in the local authority will see the same band remain at £1,436.17 for 2024/25 after the SNP administration accepted Scottish Government funding for a freeze.

Finance convener Councillor John Shaw said in a statement on Thursday that taking this step would provide “welcome respite”for Renfrewshire households.

However, the Labour-run council in Inverclyde argued taking the decision to increase council tax has minimised cuts to services.

Yesterday, however, Councillor McCabe wrote to Scottish Government finance secretary Shona Robison MSP in a bid to secure a compromise on a freeze.

The local authority had initially been facing an estimated £12.5 million funding gap over the next two financial years.

However, its spending and council tax plans, as well as use of reserves, mean it has fulfilled its legal obligation to set a balanced budget.

Inverclyde Council leader Stephen McCabe commented:“Council tax has risen by an average of 1.1 per cent in Inverclyde over the last 16 years, well below the average rate of inflation, which is a big reason why the council is facing a huge budget deficit.

“This cannot continue. Councils are at breaking point.

“By increasing council tax and utilising reserves we have kept service cuts to a minimum.”