Council Budget: SNP – 3% Council Tax rise can balance books says opposition

The party says it is not the time to raise tax and rent unnecessarily while inflation “runs riot” across the country.

Councillor David Alexander, leader of the SNP group - the single biggest party at Fife House - also said Labour's proposal was an “admission that something is seriously wrong.”

His comments came in a pre-budget briefing today. Councillors will meet on Thursday, February 23, to decide its budget.

Councillor Alexander and several SNP colleagues spoke about the financial challenges facing the local authority at Fife House on Friday and slammed the Labour Administration’s proposed 5% council tax hike.

He said: "Labour are putting forward a council tax increase of 5% and a council rent increase of 5%. That is on top of 10-11% inflation that’s already creating havoc,” he said.

“We’ve balanced the books with a 3% increase in Council Tax. We are really concerned about the impact of the cost of living crisis on people in Fife already without piling on 5% in rents and 5% in council tax.”

As part of their budget proposal, Labour has allocated £2m to the Fife Council Hardship Fund. The SNP has only earmarked £600k.

“Labour putting £2m in is coming at a cost,” said Cllr Alexander. “It’s coming at a 5% increase in Council Tax. That’s like saying we’re going to charge you more, but if you get into trouble we’ll help you. No - just don’t charge them more to start with.”

He continued: “The £2m is an admission that something’s not right. If you’re admitting that you have to put £2m more, then that should be a lesson: do not increase costs unnecessarily, but they’ve done it and we don’t understand why.”

Labour’s 5% proposal would raise the rate for Band D properties to £1,385 per year - a £66 a year increase. The SNP’s 3% proposal would take it up by £40.

At the highest tax band, Labour's proposals would raise the rates by £97 a year while SNP would raise them by £161.

However, the tax increases sit alongside proposed rent increases. Cllr Alexander said it’s not about the cost of individual increases but the cumulative effect of all increases, including national inflation.

“People are getting hit at every corner,” he said.

Dunfermline Central SNP Cllr. Derek Glen said the SNP budget specifically aims to help people who are already struggling.

“By comparison Labour created money to invest, but what they’re proposing to spend it on is spectacularly unimaginative. They’re literally throwing most of it at potholes - which we’re keen to see fixed - but it’s kind of throwing money into a hole in the ground,” Cllr Glen said.

Cllr Alexander is hopeful that the SNP budget will gain support ahead of next week’s budget meeting. He’s specifically hopeful that the council’s Liberal Democrats will think carefully about his party's.

Councillors will discuss the proposals at a meeting at Fife House next week.