Fife Budget: Council Tax bills set to rise by 5% to tackle £11.5m black hole

Councillors voted 40-32 in favour of the proposal rather than back the SNP’s bid for a 3% rise.,

It means the rate for Band D properties will go up to £1,385 per year - a £66 a year increase. The money will help to plug an £11.5m black hole in the council’s budgets.

Councillors also agreed to add £2m to the local authority’s hardship fund in addition to investing £3.5m into reactive roadworks for potholes and patches.

An additional £1.1m will help to continue crucial services, including subsidising bus contracts to avoid service cuts, funding Cafe Inc, and funding to support Fife Coast and Countryside Trust.

Putting the budget before the chamber, Councillor Altany Craik said the deal meant targeted support those who needed it, adding: “Our job is to work in Fife’s best interests. Inflation in double digits puts incredible pressure on us to deliver services. This ensures we can deliver services to residents for this year and coming years.”

He highlighted the on going support for projects such as Cafe Inc, and subsidised bus routes “to avoid communities being left isolated.”Cllr Craik added: “Cutting off people who rely on public transport is not an option.”

Councillor David Ross, leader of the minority administration, said: “We know the significant pressures on council finances. Our rise is in line with most councils across Scotland, but our Council Tax levels are still below the Scottish average.”

Labour’s proposal won the support of Tory and Lib Dem councillors, enabling it to defeat the SNP motion for a 3% rise in Council Tax.

The nationalists are the single biggest party at Fife House, but without support from another party, it could not get its motion carried.

Councillor David Alexander, SNP group leader, said there was no need for a 5% rise - and it would hit households in a cost of living crisis.

He said: “Fifers will surfer as a result and so will political parties that vote for it. Labour’s annual Private Fraser message is one of doom - job cuts, a need to raise taxes and cuts. The truth - there is no financial black hole, there is no need for cuts in services and no 75 job losses.

“We are reaching comedy gold standard with Labour’s embarrassing statements on budgets and funding.”

Councillor John Beare, SNP, Markinch, Leslie, Glenrothes North, branded Labour’s motion as the ‘GUBU budget - grotesque, unbelievable, bizarre and un-necessary.

He added: "While I hope the people of Fife are not being sacrificed on the altar of this strange coalition, I fear we will face in the coming years, if this is only the beginning, a nightmare on North Street."

The Tories and Lib Dems both threw their weight behind Labour’s proposals.