SBC to hike Council Tax by 5%

The increase, half the current rate of inflation, will be put forward later this month as part of the local authority’s budget plans.

Council bosses say the income generated from this will help manage a significant financial gap in the council budget caused by inflation and allows front-line services to be protected while delivering investment in key community priorities.

For a band D property, the impact of the increase will be £1.24 a week.

A cross-party group of councillors is currently finalising a single budget proposal, but a consensus has already been reached about the Council Tax rise, which will be presented as part of the budget plan and voted on by all councillors at a meeting on Thursday, February 23.

Councillor Euan Jardine, the leader of Scottish Borders Council, said: “A 5% increase in Council Tax is just one of a number of steps which we as a cross-party budget group are proposing to bridge the growing financial gap between the money we have available and the money we need to maintain services and invest in key projects.

“Around 40% of households do not pay the full rate, due to a variety of discounts and exemptions available depending on individual circumstances.

“This has been very difficult for members across the political spectrum to agree on. We appreciate the financial pressures facing household budgets at this time, but importantly, we also recognise how many people rely on the council for a variety of essential services.

“The proposed increase will help protect vital services such as education and social work and the care and support for vulnerable people and allow investment into key areas such as schools and roads and projects which our residents have told us are really important to them.”

Councillor Mark Rowley, the council’s executive member for Service Delivery and Transformation, including finance and budget oversight, added: “Nobody wants to be paying more for anything else right now, but those rising costs that are impacting on Borders’ households are also adversely affecting the council, from energy costs to vehicle fuel and the cost of delivering services.

“Council Tax only accounts for around a fifth of all our net income, four fifths comes from the Scottish Government. Currently inflation of over 10% is eroding our spending power, so a Council Tax increase of 5% only goes part of the way to closing the gap. The increase in the Borders is likely to be below some of the rises implemented up and down the country this April and we will continue to have one of the lowest Council Tax rates in mainland Scotland.

“It is really with a heavy heart that we are proposing this increase, but the reality is that without the additional income this will generate then we would have been left with the prospect of very damaging cuts to front-line services with no funding to support community priorities.”

Under the proposal a Council Tax payer in a Band A property would pay £904.07 in 2023/24 and those in Band H £3,322.47.