Council tax rise of 6.9% agreed for East Ayrshire

East Ayrshire Council has approved a 6.9% increase in council tax after the SNP’s administration was backed by the Labour opposition.

This was lower than had previously been mooted, with chief finance officer Joe McLachlan previously recommending an 8%.

He had indicated that a 5% increase could have been sufficient to balance the budget had it not been for the need to address a significant overspend by East Ayrshire Health and Social Care Partnership.

With the council set to use significant reserves to support the HSCP, it had been stated that a further 3% increase would be required to bring the reserves back to a sustainable level.

However, further savings identified by the HSCP reduced that requirement, allowing for the lower increase.

Opening proceedings, SNP council leader Douglas Reid said the authority was operating in “probably one of the most challenging circumstances this council has ever faced”.

He pointed to “an older population, declining school rolls in some areas, growth in the ASL community and financial pressures that continue to grow — none more so than in the Health and Social Care Partnership”.

Councillor Reid said the administration had approached the budget “with one goal — to deliver a balanced budget with as little impact on council services as possible and as little burden on our council tax payers as can be managed”.

He added: “We do not have a great deal of new initiatives in areas of spending, which is a normal feature of this budget-setting process, but I am pleased to report that we have a balanced budget that keeps us within our financial strategy.”

Announcing the proposed rise, he said: “We propose a council tax increase for this year of 6.9%, which, while still higher than we would have wished, is less than many other councils in Scotland, particularly while keeping this council on a steady financial footing.”

The leader also referred to a review of the council’s £40 million early intervention and prevention fund, describing it as having “served us well over recent months”, helping to tackle poverty, improve employment and training opportunities, and support attainment and inclusion in schools.

He highlighted that 332 individuals had received pension support and said the Jobs and Training Fund had delivered 250 jobs, adding he was “particularly proud” of the £4.5 million continuation of investment in young people.

The review would bring together all councillors and assess the projects that were working best, those that aren’t and provide an opportunity for new ideas.

On capital spending, councillor Reid said the authority was delivering “an ambitious capital programme” of around £170 million, including £70 million in Kilmarnock town centre, with about half secured from external sources.

Labour deputy leader, Councillor Linda Mabon, said the debate required “honesty about the reality” facing the council and its residents.

Referring to the tax rise, she said: “On the face of it, a 6.9% council tax rise is difficult to explain and difficult to accept. A lower figure would always be easier to offer.

“However, when we look at the scale of the financial gap, these percentages are not just numbers – they carry a responsibility.”

Councillor Mabon said members had to acknowledge the wider context of sustained budget pressures.

“We all know how hard this is — hard for us as elected members, hard for staff, but most of all hard for the people who rely on our services,” she said.

She added: “Doing nothing is not an option. Pretending is not an option. Passing the problem on is not an option. We must take responsibility in the environment we are in and confront that reality.”

While the proposed budget was all but guaranteed to be passed, Conservative group leader Neill Watts said his group believed the council should be “seen to be setting a prudent and responsible budget at a time when hard-working families and pensioners have their backs to the wall”.

He argued the proposed increase was too high.

“A rise of 6.9% is still more than double the current rate of inflation and, in our view, remains unacceptable,” he said. “It will only continue to add to the severe financial pressures that families, pensioners and single parents across East Ayrshire are currently facing.”

Councillor Watts moved an amendment to limit the increase to five per cent, stating he had received assurances that “we can balance our budget with a five per cent rise”.

He also proposed freezing pest control charges at £48, reversing a previously agreed increase to the garden waste permit and freezing it at £40, and closely monitoring £730,000 of education staffing savings “so that children do not suffer any reduction in their educational needs”.

Council officers advised that reducing the rise and adjusting fees would have financial implications, including pressure on reserves and the need to identify alternative savings.

The original budget report presented to Cabinet had recommended an 8% rise, which would have taken the current Band D rate of £1,606.44 to £1,734.96 — an increase of £128.52 per year.

Under the revised 6.9% increase agreed by the administration, the Band D charge will instead rise to £1,717.28, representing an annual increase of £110.84.

The change means households will pay £17.68 less than they would have under the original 8% proposal.

During the budget debate, the Conservative group put forward an amendment seeking to limit the increase to 5%.

A 5% rise would have increased the Band D rate to £1,686.76, an uplift of £80.32 per year.

However, administration members rejected the proposal, arguing that a lower increase would have created a larger funding gap and placed additional pressure on services.

The SNP administration budget, backed by Labour and Independent councillors was approved.