Angus residents have been warned it would take a 15% rise in council tax to plug the budget gap the council is facing this year.
The authority is forecasting a £9.5 million shortfall for 2025/26.
On Thursday, the council’s policy and budget strategy group (PBSG) will meet to consider its budget plans.
And finance chiefs have revealed it would mean £197 extra on every Band D bill – currently £1316.68 – if council tax alone was used to fill the black hole.
A double digit hike would generate £6.3m in extra council tax. Even a 5% rise would only bring in a third of the required £9.5m.
Angus council tax was frozen again in 2024 as the administration made a £6m dip into reserves.
Combination of budget measures
There are four ways the council can address the funding shortfall:
- Reduce expenditure
- Increase council tax
- Increase fees and charges for council services
- Use council reserves
The outcome of the PBSG discussions are likely to be part of a second round of consultation with Angus residents before the budget is set at the end of February.
But finance director Ian Lorimer has repeated his warnings of the tough choices facing the council and residents.
In the 12 years since 2013/14, the council has made budget savings of £97m (29.3%).
He said: “Given what’s already been done to save money in previous years, there are now very few options to reduce expenditure further which don’t involve directs cuts to existing services.”
He also said increasing charges for services such as school meals, burial charges and garden waste would bring in relatively small sums.
Mr Lorimer added: “If all of the projected funding shortfall had to be met from increases in fees and charges, this alone this would require an across the board increase of 142%.
“This is not a realistic option.”
Options for increasing charges have been capped for this year at 20% – equivalent to just £1.3m in additional income.
Suggested rises in council house rents ranging from 5.2% to 8.2% have been put to tenants.
What happens between now and budget-setting?
Mid-January to mid-February: Officers provide support to any non-administration councillors considering making budget proposals
Late January: PBSG agree and finalise budget proposals and council tax
Mid-February: Council rents setting meeting
Late February: Special meeting of Angus Council to agree capital and revenue budgets and set council tax.
Conversation