Fife Council Approves 8.2 Percent Council Tax Increase for Residents

Fife council tax will increase by 8.2 percent. Labour leaders called it a necessary rise because they need the money for vital public services. The SNP proposed a smaller 6.4 percent increase, but councillors rejected their proposal by a vote.

David Ross, who leads the Fife council, said they first considered a ten percent hike. However, they found savings, lowering the increase. Fife’s council tax is lower than many areas, and other councils face similar tax increases.

The council approved the budget after meeting at Fife House in Glenrothes. The budget includes the council tax change and an investment in local projects. For example, they will put £3.5 million into road repairs.

They plan to spend on vehicles and the council will allocate £13.1 million for a new pool. They will also fund flood prevention projects and give £100,000 to Fife Coast.

The tax increase impacts homeowners. Band D properties will pay more than £100 extra annually, causing their bills to rise to £1,498 per year. This rise is much higher than inflation, which is only about three percent.

Ross stated they had to help Fife Health, who needed £10 million. The council faced a major budget challenge because they lack Scottish Government funding, thus they must use council tax revenue.

Ross understands tax hikes hurt families, but local services are essential, especially to vulnerable people. They must balance costs and services and need a tax level that works long-term.

Labour expects a budget gap in the future. They project an £11.6 million shortfall in 2025, and the gap could reach £61 million in 2027. They will need five percent tax increases yearly and must make cuts or raise taxes.

The SNP believes the tax hikes are too high and that it will hit residents hard. Councillor Craig Walker, who leads the SNP group, knows families struggle with high costs but also that services risk cuts without tax increases.

The SNP proposed a smaller increase; their 6.4% rise would help families. Walker called it a responsible plan that maintains quality services. A UK government decision added costs, which made a lower rise harder.

Last year, the government offered funds, which encouraged councils to freeze taxes. Fife agreed, keeping taxes steady, and invested £14 million in services. This year, there are no such government offers.