A humiliating defeat was suffered by the SNP administration at Wednesday’s North Ayrshire Council Budget – sinking their plans for a whopping council tax rise four times the rate of inflation of 12%.
The SNP administration put forward a proposed 12% increase in council tax.
But they backed down with another motion to put forward plans to increase the rate by just 8.5%.
The Labour amendment for an 8.5% rise, which also included a £4m investment in roads, was comfortably passed.
Labour leader Joe Cullinane said the first impression people would get of the new SNP leadership was of plans for a proposed 12%.
He said: “Much of what has happened has been self-inflicted after two decades of SNP funding.
“The SNP are coming into bat for the Scottish Government, instead of batting for the people of North Ayrshire. They have zero fiscal strategy and the HSCP is eating alive the council resources each year.
“There is a lack of leadership in the council. When I was council leader I invested in our communities and under the SNP administration we have become administrators presiding over cuts.
“Cuts will not change anything – we will be in the same position next year.
“Four years into the SNP term not a single capital project has been added in.
“We can borrow £4m for investment in roads and can give something back to the public.”
Council leader Tony Gurney said that most people in the chamber would be dead by the time the roads investment was paid off.
Cabinet member for finance Christina Larsen said: “We received £5m more than last year from the Scottish Government and they have not attached any conditions including the council tax increase. Having flexibility helps.
“The budget consultation went well with 1,200 responses.
“We have a falling school roll but have a pupil to teacher ratio which is better than the vast majority of schools across Scotland.”
Councillor Larsen added: “The HSPC has a funding gap of £12.6m and although responsibility rests with the Integration Joint Board, the council should not ignore this position – we will not ignore it as behind there are vulnerable people.
“The more we have in funding the more we can operate services but must continue to make efficiencies.
“We have a major challenge.
“If we do not provide more funding, failing to protect our most vulnerable residents by prioritising care we would have to choose who we care for and elderly people and carers rely on services.
“Cutting of care packages will be off the table if the Council Tax rises. From the Solar project the financial benefits passed onto our residents will support new renewable energy projects.
“Our investment in tackling Child poverty is £383,000, which will bring up the total to £500,000.”
She said after submitting a new motion proposing an 8.5% increase in Council Tax that residents would be saddling the debt from the HSCP for many years to come and this would totally stretch the organisation and have a huge impact on care services.
Cllr Larsen earlier said: “We could have a relatively small level of council tax and it would give us a balanced budget but does not go far enough to support the partnership.”
She added later: “We proposed a 12% increase in Council Tax with a heavy heart but appreciate the 12% rise would not have been accepted by this chamber.”
Tory leader Cameron Inglis said: “The Integration Joint Board and the partnership must get their house in order. It is a substantial risk but it must do more on its own to address its problems.
“They should live within their means and this is the responsibility of the Scottish Government so get your house and sort it now.
“We want £1m for roads structure to give more back to bread and butter projects like roads, streets and housing are what people want.
“These key services could continue to be invested in from people’s Council Tax. We will always make sure these services are prioritised.
“We will not keep putting money to the HSCP unless it lives within its own pressure.”
Reform proposed no council tax increase and return to school crossing patrollers to pre-2025-26 levels.
They also called on teacher numbers to be reduced in line with the pupil-teacher ratio.
Leader Matthew McLean said: “If the ratio is good enough for Scotland it is good enough for North Ayrshire.”
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