North Ayrshire councillors recommend council tax hike of 7%

The proposal to hike council tax comes ahead of next Wednesday’s Budget meeting.

North Ayrshire councillors recommend council tax hike of 7%LDRS

A council tax rise more than double the rate of inflation is being recommended by North Ayrshire Council officers.

The proposal to hike the charges up to 7% comes ahead of next Wednesday’s Budget meeting.

It follows the news that inflation rose to 3% this week.

It is currently recommended that council tax should increase by 7% from April. However, a final decision will be made by elected members who decide on Wednesday.

Like all other local authorities across Scotland, North Ayrshire faces a challenging financial landscape. 

Although an increase of £7.254m in core grant funding (2.05%) from central government has eased some of the pressure, rising costs and other financial pressures mean that savings will still be required.

Additional strain, they say, will be placed on council finances due to the UK-wide increase in employer National Insurance. 

Funding from the Scottish Government will cover 60% of the extra costs but the council will have to fund the shortfall of approximately £2.65m.

This extra financial burden is one of the reasons why North Ayrshire Council faces a funding gap of around £16m for 2025-26. 

It is proposed that this will be managed in a number of ways including using about £4m in reserves, income from a council tax premium on second homes, and savings.

Having already cut £84m from its budget over the previous eight years, it means difficult choices lie ahead.

Early engagement was held last year with communities to get their thoughts on different council services and how any changes might impact them.

The results of this engagement, which attracted more than 4,400 responses, have been presented to elected members and will help inform considerations when the budget is set.

Following on from that engagement, a number of petitions were received from communities in support of libraries in Dreghorn, Saltcoats, Ardrossan and Beith, and the rangers service at Eglinton Park as well as against potential parking charges. These petitions will also be considered by elected members.

The budget will still represent a £459m investment including proposals for further spending across the roads infrastructure and investment to ensure council properties are energy efficient. The additional investment is £1m for the year.

In addition to the council’s revenue budget, elected members will also consider the capital budget which supports investment in our infrastructure and regeneration projects. 

The ten-year £331.5m capital budget includes investment in a wide range of projects such as North Ayrshire’s roads and schools estate, the upgrade of the B714, de-carbonisation of the council fleet, the Great Harbour in Irvine and Ardrossan Coastal Quarter.

Elected Members will meet from 2pm on Wednesday, February 26, to set the Budget for 2025/26.

The meeting will be available to view live online at https://north-ayrshire.public-i.tv/core/portal/webcast_interactive/945192

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