INVERCLYDE Council has approved a Council Tax increase of 8.5 per cent as part of its budget for 2025/26.
Councillors approved a £260million revenue budget and a three-year £65million capital budget.
The Council Tax increase will mean an extra £121.53 per year –- or £2.33 per week –- for the average Band D household.
The increase is to help plug a £4.2million funding gap facing the council in 2025/26 alone and a projected £16million shortfall over the next two years.
It will raise an additional £2.975million with the remaining £1.245million being met through the use of reserves.
The rise will mean an increase of between £81.02 per year – or £1.55 a week – for those in the lowest Band A properties, which accounts for 46 per cent of Council Tax payers, up to an extra £297.75 – or £5.71 a week – for people living in the highest Band H properties, of which there are 217 chargeable properties.
Approximately 9,000 (24 per cent) of households will be protected from any Council Tax increase due to receipt of Council Tax Reduction (CTR), whilst a further 2,200 properties receive full exemption.
Among the spending announcements made at today’s meeting were:
— An extra £700,000 for children and families services run by Inverclyde Health and Social Care Partnership (HSCP) to support vulnerable young people
— £600,000 towards anti-poverty initiatives, including employability
— £600,000 allocated for support needs (ASN) initiatives
— An additional £600,000 allocated towards investment in roads
— £270,000 for tourism to promote Inverclyde’s natural beauty
It was also agreed to allocate £1.5million towards transformation projects to support digital, workforce and service modernisation to help with efficiency savings and £1.2million to replace financial management systems.
Projects included in the £65million capital budget are:
— £12.6million on the schools and nurseries estate
— Almost £7.5million for roads improvements
— £4.6million towards vehicle replacements
— £2.3million on net zero projects
— Almost £2million for town and village centre improvements
— £1.3million to reinstate the collapsed Dunrod Road
— Just under £1million on cycling, walking and safer routes
— £670,000 on leisure pitches
— £383,000 for Waterfront Leisure Centre improvements
— £260,000 allocated for pavement upgrades and repairs
The budget and Council Tax proposals were approved by 16 votes to six after being put forward by council leader Robert Moran and seconded by depute leader Natasha McGuire on behalf of the members’ budget working group (MBWG), which comprises councillors from different political groups and also independents. The SNP group had put forward alternative proposals.
The special meeting of the council to set the 2025/26 budget and Council Tax is available to watch on the Inverclyde Council YouTube channel and associated papers are on the council website.
Councillor Moran said: “Council services support all our lives every day in different ways. Everything we do matters and makes a difference in people’s lives here in Inverclyde.
“That’s why setting the council budget is so challenging. Year-on-year, local government grants have been cut, and Council Tax frozen or capped.
“This year we had a better settlement and a free hand to set Council Tax, which is very welcome, but let’s not forget our financial situation is caused by years of austerity. For 15 of the last 18 years Council Tax has been frozen or capped.
“It will come as no consolation to the people of Inverclyde that the 8.5 per cent increase in Council Tax here is less than the double-digit increases we are seeing in other local authority areas, which shows the scale of the financial crisis facing local government.
“The MBWG has worked hard over these past weeks and months to develop proposals that protect and invest in vital frontline services while keeping increases to Council Tax, fees and charges, and cuts to jobs and services to an absolute minimum.
“For most people, the weekly increase in Council Tax amounts to less than a cup of coffee and in return we are able to invest in children and families services to help support some of the most vulnerable young people in our community, deliver extra support for ASN initiatives, and provide additional help for those who are struggling financially through extra anti-poverty and employability funding.
“Today’s budget also means additional investment in our local roads network, specific funding for tourism to help generate inward investment and spend to support local businesses, and allows for further modernisation of council services.
“This is all on top of the ‘run-of-the-mill’ services being delivered day in, day out by talented and dedicated staff right across the council in our schools, libraries and community facilities and in our community through bin collections, street cleaning, and maintenance of park and grounds, to name a few.”
