Councilors will vote on a potential 8.9% council tax increase, the largest in years, to cover rising employee costs.
The council initially wanted a 5.8% increase, but the new proposal is 3% higher than that earlier idea. The 8.95% helps cover rising employee costs, especially with national insurance contributions rising for health care.
The average Band D household would pay £10.37 more monthly. The tax hike would cover a 40% shortfall and the national insurance costs. Cuts would fall by £3 million in local services, although the council must still make £12 million in budget cuts.
Council Tax would need a 21% rise in 2025/26 to offset the total budget gap. The council faces a £34.9 million gap that is projected over the next three years. The Scottish Government funds only 60%, however, these funds cover the NI contributions to councils.
Savings measures agreed on two years ago will continue for five years. The council had to agree to more measures to help balance its budget. Savings approved at last year’s budget session will be implemented from April 2025.
Examples include internal savings through a review of admin support that will streamline processes to lower costs. There are internal management restructures happening as well, with some staff numbers cut via vacancy control. A review of some service contracts aims at savings while increased fostering campaigns and adoption services will grow.
Education also faces savings through devolved management changes. Over £2.1 million in additional savings are suggested to help meet a greater funding gap next year. Internal efficiencies in staffing and supplies are possible, with property and transport budgets tightening up. The plan will reduce council tax empty property discounts, although these changes align with current regulations. Empty property relief for business rates will be viewed, and increased rent income from council properties is also planned.