February 22, 2024
Argyll and Bute council headquarters at Kilmory Castle in Lochgilphead.
The occupiers of Band D properties in Argyll will now pay £1,627.12, which will shock them to their core since the reason for them leaving West Dunbartonshire – they were formerly part of Dumbarton District Council – was that the local authority charges were too high.
Even in in a relatively wealthy community such as theirs.
They expressed strong opinions in packed public meetings at the time that they were not receiving value for money and that the public services were not up to scratch.
The failure to provide a new public library in Helensburgh was at the eye of the political storm which engulfed communities down the Firth at that time.
One man, Ferdie Thurgood, a Customs and Excise man well known in the Helensburgh sailing community, was so enraged at the intransigence of Dumbarton turning down the new library request that he climbed on to the roof of the Helensburgh council offices and hoisted a voluminous pair of women’s knickers up the flagpole.
Argyll and Bute councillors are said to have voted for the rise in an attempt to overcome a £40 million funding gap.
They were told they had to consider whether to reject the freeze and increase council tax by a minimum of 6.15 per cent or pay a “one-off fix” of using reserves to balance the budget.
The 10 per cent rise is reported to have come as a surprise to some councillors.
The Liberal Democrat leader of Argyll and Bute council, Robin Currie said he did not want to raise council tax by 10 per cent but the council had “no option” if it wanted to save services and jobs.
During the meeting councillors were told that Deputy First Minister Shona Robison had written to councils on Wednesday offering them an extra £62.7m in funding if they voted to implement the freeze.
Mr Currie said it was “heartening” that the government had offered extra funding “at the eleventh hour” but a lack of clarity remained.
He added: “It is impossible for it to make any real difference to budgets at this stage. Regardless of the additional money we are still in a very difficult position but we are not alone. Claims about a fully-funded freeze are no more than just that.”
Mr Currie added that the SNP government had placed an “all or nothing” demand on already “cash-strapped councils”.
The council’s strategic opposition group, made up of SNP, independent and one Labour councillor had wanted to bring in the freeze to help constituents during the cost of living crisis, but they failed.
The Scottish government had previously proposed raising council tax rates by as much as 22.5% for homes in higher bands.
But Humza Yousaf said they would remain at current levels when councils set their budgets for 2024-25. He said this was the SNP “delivering for people when they need it most”.
Council funding is complex. The council tax generates about 13 per cent of local government funding, with most of the rest of their money coming from Holyrood.
The levy has either been frozen or capped at three per cent since the SNP came to power in 2007, with the Scottish government providing local authorities with extra funding in return.
But councils have been allowed to use new powers to set their own rates of tax for the past two years, with most areas seeing rises of between four and seven per cent this year.
Humza Yousaf has said the government would make up the budgetary shortfall for councils who would have raised taxes, with £144 million made available to local authorities.
Cosla, the umbrella body for councils in Scotland, said that the freeze was not being fully funded by the government.
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“This budget saves the services people use. Vital council services are protected from debilitating cuts and maintained for the communities who need them.” — Councillor Robin Currie, Leader of Argyll and Bute Council
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By Aileen Maclennan
Argyll and Bute Council today set a budget to address a £10 million+ gap in the council’s revenue budget for running services, and a nearly £30 million gap in its capital budget for infrastructure such as roads reconstruction programmes, harbour investment, regeneration projects, bridge maintenance, maintaining social care, education and Live Argyll properties, and weather recovery work.
Councillor Robin Currie, Leader of Argyll and Bute Council, pictured right, said: “In all the years I’ve been a councillor, this has been the most difficult budget to set. We considered every option to save the council services and local jobs that communities need.
“We campaigned for fair council funding for Argyll and Bute with CoSLA. We identified nearly £4 million more savings without affecting services or jobs.
“We took steps to raise income such as doubling council tax on second homes. But Argyll and Bute still faced a multi-million pound budget gap that threatened the council services people use every day.
“Our focus has to remain firmly on supporting people now, and on building the sustainable future we all want for Argyll and Bute. That focus cannot slip away in the face of severe and on-going budget gaps.
“This service-saving budget is only possible with an increase in council tax. Council tax funds council services. Increasing council tax saves services.
“It was a difficult decision to take but it is the responsible one. Council tax reduction benefits are there to help those in greatest need. And communities across the area can continue to rely on the council services and support they need.”
The budget provides funding for social care and Live Argyll services as well as for the full range of council services.
It also provides support for additional leisure, tourism, regeneration and other initiatives, the Council claims:
- International Eight Metre Association World Cup – £10k
- Argyll and the Isles Tourism Co-operative – £75k
- CHARTs (Culture, Heritage and Arts Assembly) – £75k
- Screen Machine – £28k
- Mid Argyll Community Pool – £30k
- Mactaggart Leisure – Islay Pool – £30k
- Environmental Warden Service increase – £45k
- Cost of living support – £57k+ with proposals to be developed to support the Community Food Forum, ALIEnergy, Argyll and Bute Citizens Advice Bureau and Bute Advice Centre.
There will be no increase to school meal charges in 2024/25, and Council rejected proposals for phased reductions in third sector and community grants, and strategic events and festivals funding.
Helensburgh councillor Gary Mulvaney, Policy Lead for Financial Services, said: “The Scottish Government funding settlement available to the council on the basis of a council tax freeze would have meant cuts to services.
“Decisions made today keep services going for our communities. Decisions made today keep investment going in Argyll and Bute’s future.”
Council Tax chargeable in Band ‘D’ is £1,627.12, an increase of 10%
- The Scottish Government had announced a council tax freeze. However CoSLA, which campaigns for fair funding on behalf of councils, produced a budget reality analysis showing a £62.7 million cash cut to councils.
- Update: the Scottish Government late yesterday confirmed the intention to provide additional funding to local government, but subject to the UK Government Spring Budget. We understand that this may mean £1.1 million for Argyll and Bute but this cannot be guaranteed or relied upon until after the Spring Budget.
- Following recently received information about funding implications of the Mull Campus project, councillors agreed that no decision is made until further detail is available and reported to Council in April.
- In brief, through LEIP the Scottish Government would provide up to 50 per cent of eligible costs, but recent estimates are that contribution to the overall project could be as low as 35 per cent, with the Council required to make up the balance, pay the total cost up front (around £40 million), and interest on funding borrowed for this.
- This adds to the significant financial contribution required from the Council, so time will be taken for work to be done on potential financial models for delivering a campus.
- The Council provisionally agreed funding to support the completion of Rothesay Pavilion subject to a follow-up report going to Council in May, with updates on additional funding sources and cost implications.
Rosneath Peninsula from Helensburgh. Top of page picture is of West Clyde Street on the seafront in Helensburgh. Picture by Bill Heaney