Fife Council tax rise 'stopped local authority from cutting 150 jobs'

Around 150 jobs would have been at risk had Fife Council not decided to raise council tax by 3% for the coming year, its co-leaders have confirmed.
David Alexander and David Ross.David Alexander and David Ross.
David Alexander and David Ross.

The region’s joint SNP/Labour administration’s spending plans were approved by full council on Thursday and not only saw council tax rise by 75p per week for Band D households but enabled the local authority to make a one-off investment of £3.7 million in a range of areas such as road repairs, street cleaning and anti-poverty projects.

Critics say the council tax hike could have been avoided, but Labour co-leader Councillor David Ross said the budget was designed to protect and maintain local services and support recovery while recognising the financial pressures of households and indeed the council as a whole.

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“We gave a lot of thought as to whether we could avoid an increase in council tax this year but we concluded that a limited, below inflation, increase of 3% is required in order to avoid damaging cuts to services which could mean the loss of up to 150 jobs – jobs that are essential for delivering local services,” he said.

“To freeze the council tax this year would mean not only a shortfall of over £5 million this year but the year after that and the year after that and so on.

“We’re conscious of the cumulative impact of increases of a range of costs and we’ve therefore limited the increase in both council tax and council house rents to the minimum needed to sustain local services.

“We’ll be spending £11m on hardship support next year – in addition to one-off Covid recovery funding – and our welfare support programmes target help to people who need it most.”

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While there are no cuts this year, councillors were warned on Thursday that current projections show a budget gap of £16.9m for 2023/24 rising to £29.3m the year after – even after assuming a council tax rise of 3%.

SNP co-leader Councillor David Alexander is optimistic these worst case scenarios will not come to pass, pointing out that last year’s budget papers forecast a negative gap of £18.9 million.

That didn’t happen, and instead the council has been able to invest £3.7 million in roads maintenance; more street cleaning staff; community food and growing initiatives; enhanced summer activity programmes; extra funding for Cafe Inc; more resources for Fife Coast and Countryside Trust; and more cash for local area budgets.

“This is the second year in a row that we’ve been able to invest more in some services, without reducing funding in other areas,” Mr Alexander noted.

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“Last year we invested significantly in Fife’s infrastructure. We’re topping that up with more money for road maintenance and street cleaning, operations which have become more challenging than ever over the past couple of years.

“It’s absolutely correct to be cautious because of the uncertainties we have, and that’s what we’re doing.

“It’s absolutely correct to be concerned about the cost of living crisis.

Inflation is rising rapidly thanks to the introduction of the higher price cap on electricity and gas. We know about the disastrous Brexit-inspired financial challenges and there’s a 10% increase in National Insurance coming in April breaking a Tory election promise not to increase taxes.

“But this is a positive budget, we are leaving a legacy for the new administration and we are doing substantially more spend in Fife than the 3% increase in council tax would fund.”