Warning Fife council tax bills could rise by up to 10% to protect services

Fife residents face a council tax rise of up to 10% in April in a bid to protect vital services.

The hike would take the bill for Band D properties to just over £2,000 a year – almost £182 more than this year.

Council leader David Ross says a significant increase is needed as the authority gets to grips with a £22.6 million budget gap.

And keeping the rise to 3% would leave the council £17m short of what is needed to keep services at current levels.

The Labour group leader said: “It will be very difficult to avoid a significant increase.

“There has to be a balance between services and council tax.”

He has also warned of possible job cuts, although there is no suggestion of compulsory redundancies.

Posts are likely to reduce through natural wastage or redeployment.

And with the budget black hole expected to rise in the following two years without further action, £200m will be cut from the capital plan – a 20% reduction.

This means some projects are likely to be dropped.

The challenge follows a year with no service cuts, despite a council tax freeze.

‘At some point you hit a wall’

Mr Ross said 16 Scottish local authorities have indicated council tax rises of more than 7%.

And many are looking at over 10%.

“Overall, we’ve been pretty good as a council in managing our finances,” he said.

“But at some point you hit the wall or the cliff edge.”

The Scottish Government has announced a £15 billion funding package for local authorities for 2025-26

And Fife Council expects to receive £927m if Parliament agrees.

This is £65m more than last year but the rise is not in line with inflation.

The UK Government’s increase in employers’ National Insurance contributions is also impacting finances.

‘Big pressure areas’ leave Fife Council £11m in the red

Mr Ross said: “Big pressure areas are health and social care and the capital programme.”

He added: “With this year’s budget we’re just about managing to break even in terms of services, except for social care.

“We’re about £11m in the red and most of that is due to social care.

“One reason for pressures in the capital programme is inflation has rocketed in construction projects.

“This means projections made five years ago are now way too low.

“The other thing is borrowing rates haven’t come down as much as predicted, and the way we fund our capital plan is by borrowing.”

Fife Council’s ruling Labour group is still looking at budget options.

And discussions with other political parties are ongoing.

Final decisions will be made at a crunch budget meeting on February 20.