Fife Council budget: Labour’s 'modest’ Council Tax rise to protect services
Council Tax is set to go up by five per cent in Fife which will be “amongst the lowest” increases in Scotland.
The local authority’s budget will be decided at a full council meeting next Thursday (February 26) with the minority Labour administration, SNP and Liberal Democrat group proposals all including the same rise.
Council leader David Ross said indications suggest the increase will be “amongst the lowest” across Scotland and would help plug the £3.626m gap in their finances.
But he warned that the “financial impacts of expenditure increasing at a faster rate than funding” are set to be felt for years to come.
His report stated: “If the council is to avoid making cuts to essential services but leave scope for some much needed investment to meet increasing demands, then this budget gap must be closed through council tax.
“Last year we set out a three year budget projection with council tax increases of five per cent for the coming two years.
“Thanks to good financial management we will be able to keep to these projections, although this will leave an outstanding budget gap of £8.450m for 2027/28 rising to £35.097m in 2028/29.”
Major investments included in the administration’s budget proposals are £5.5m in additional funding for health and social care, £5m for Dunfermline following the UK Government pulling out of plans for the same amount in Levelling Up funding, and £5.9m for dry side and gym facilities to enhance the new swimming centre in South West Fife.
Kirkcaldy will also receive £1m to support additional regeneration projects which cannot be funded through UK Growth Fund cash.
Cllr Ross said investment in education remains a “high priority” and confirmed funding for schools would increase in line with inflation and national pay agreements.
“In addition to this we will invest a further £500,000 in additional pupil support assistants and additional needs staff on a recurring basis,” he stated.
“Following discussion with other political groups, we also plan to invest £250,000 in the school library service and £200,000 in school swimming (rising to £300,000 in 2027/28).
“We will also support investment of a further £275,000 in education, the details of which we expect to be set out in an amendment from the Conservative Group.”
An additional £3.5m will be put into ongoing investment in improving Fife’s roads with funding to be split equally between area committees to boost their area road programmes.
Another £500,000 in capital funding and £250,000 of direct revenue money will also be used for strategically prioritised spending on signing, lining and drainage projects.
There will be £250,000 for an Employability Skills Centre to support local people into jobs and fill skill gaps in the local economy, £300,000 will be used for the expansion of the Flexi Bus Service in the West Fife villages for a further year and £200,000 to support the upcoming Twin Town Olympiad.
The proposals would see £150,000 of revenue funding used to support enhancements at Lochore Meadows and £120,000 of match funding for Glenrothes Strollers to allow them to draw down further external funding for pitch and facility improvements, and £75,000 to begin investigation of a ‘Beyond Scotland’ tourist attraction project.
The Labour administration said savings options put forward by officers for consideration, which they decided to reject, included a change in mileage criteria for school transport and additional car parking changes – although with the exception of an uplift in the base rate for existing locations.
They dismissed the idea of charging for the collection of garden waste, reintroducing charges for bulky uplifts and a reduction in school crossing patrols.
The budget proposals paper added: “In conclusion these budget proposals protect local services, maintain our commitment on council tax, whilst allowing for a modest level of investment to meet new demands.
“It is clear that the financial impacts of expenditure increasing at a faster rate than funding could continue for some time to come.
“The council has been able to balance its budget in recent years despite challenging settlements and the future financial sustainability of the council is of significant concern given the potential risk to core funding and the overall financial outlook.”