South Ayrshire increases council tax by 8%

Councillors in South Ayrshire have agreed to an 8% hike in council tax.

Despite talk about the possibility of council tax increases hitting 10% across Scotland, the Conservative and Independent-run administration settled on the figure that they say balanced the financial pressure with the impact on taxpayers over the coming few years.

Labour tabled their own proposals, which would have seen a 6% increase, while the SNP also put forward their plans for a 6.8% rise.

Labour and the SNP insisted that their tax increases would help the less well-off in South Ayrshire, for whom any increase would have a real impact.

However, the Conservatives argued that by reducing the levels by those amounts, the other parties were increasing the amount South Ayrshire Council would have to save in the next couple of years.

Council leader Martin Dowey stated that the administration’s proposals would ensure that the budget gap for the following year (2026/27) would be £11.4m.

This compares with a £14.5m shortfall under the Labour proposals and £13.73m under the SNP submission.

Cuts and savings totalling £806,000 were agreed, on top of previously agreed savings of £512,000.

The cuts and savings are primarily around charging for funeral services, waste management, planning, and leisure.

There are also workforce implications, mainly from the non-filling of vacancies and temporary jobs.

However, some reviews will leave the door open for redundancies in the future:

These savings include:

Increases to a range of sports and leisure services including golf season tickets (£5) and green fees (£2), pitch hire
Introduce parking charges to some car parks
Review of secondary school admin support
Increased bereavement charges, commercial waste charges
New charge for developers street naming

The administration says that the budget, which was approved by 17 votes to 12, focuses on the protection of frontline services, income generation and investment in key areas, such as education, and health and social care.

Councillors also agreed on their capital plan for the coming 12 years, which was recently reduced to save on debt charges.

It includes £16m for Ayr Town Centre to improve Burns Statue Square, £1.5m for Girvan Regeneration works, and £2.5m as match funding for the Dunure Heritage project.

A spokesperson also said: “We’re also allocating £26.1m over the next 12 years to improve the road network across South Ayrshire.”

As well as direct council services, members also agreed to give South Ayrshire Health and Social Care Partnership £107m to operate council social services – a six per cent increase.

Plans are also ongoing to repurpose the former Hourstons building into a mixed-use ‘care village’ development, refurbish the Citadel Leisure Centre and Prestwick swimming pool, plan an extension for Troon swimming pool, and improve the all-weather pitch in Girvan.

The spokesperson continued: “While we are making investments, we still face a challenging financial landscape where costs continue to rise.

“This year, in addition to our block grant, the Scottish Government provided £6.1 million of un-ringfenced funding. However, this will not make ends meet and we need to generate more income.

“To do this, we are increasing fees for some council services, including sport and leisure, golf, allotments, and commercial waste collections.

“We have also had to take the difficult, but essential decision to increase Council Tax by 8 per cent in 2025/26, equating to an increase of £9.69 a month for a band D property.

“To assist us with financial planning for future years, we’re also assuming a further increase of 8 per cent in 2026/27, and a 6 per cent increase in 2027/28. Any future increases will be reviewed in the relevant years budget setting process.

Councillor Dowey, said: “I’d like to thank those of you who took the time to take part in our budget consultation. Most respondents told us that they would prefer to see an increase in charges rather than a decrease in services provided, and we have taken this into account.

“This budget comes at a time of significant financial pressure, and we’ve not only balanced the books, but also made investment in a range of areas and worked hard to keep any increases to service charges as low as possible.

“It’s been challenging, but we are confident that the steps we have taken will protect jobs, essential services and improve the local area for residents and visitors.”

South Ayrshire Council’s Portfolio Holder for Finance, ICT, and Procurement, Councillor Ian Davis, said: “This budget reflects our commitment to protecting essential services while also focusing on creating sustainable income for the future. We’re focusing on delivering the best service to our residents with the resources available.

“I know the decision to raise Council Tax won’t be welcomed, but it is a necessary step to make sure we can continue to provide our vital services in the face of rising costs.

“We know there are hurdles ahead, but by planning ahead and exploring various solutions, we are confident we can meet our financial objectives and savings targets in the years to come.”