Inverclyde Council decline funding for tax freeze
Labour’s Councillor Stephen McCabe and the SNP’s Shona Robison MSP met on Friday amid an ongoing row over the issue.
Crunch talks between the leader of Inverclyde Council and the deputy first minister over a council tax ‘compromise’ have resulted in no deal being agreed.
Labour’s Councillor Stephen McCabe and the SNP’s Shona Robison MSP, who is also the Scottish Government’s finance secretary, met on Friday amid an ongoing row over the issue.
At its recent special meeting, the local authority agreed to increase council tax by 8.2 per cent in 2024/25, with a further rise of six per cent planned for 2025/26, to deliver a balanced budget and minimise cuts to jobs and services.
In doing so, it declined a Scottish Government offer of funding to implement a freeze in the coming year.
The counter-offer
However, afterwards the council leader wrote to Ms Robison, suggesting a ‘compromise’ which would involve his authority receiving the sum of around £2.9 million in exchange for offering residents a rebate.
But it has since been announced that agreement could not be reached at Friday’s meeting.
Councillor McCabe said: “I was pleased to have the opportunity to meet with the deputy first minister, but I am deeply disappointed that she continues to disrespect the council’s democratic decision to raise council tax, which we believe is in the interests of the residents of Inverclyde.
“I am also disappointed that she has rejected the eminently reasonable compromise I put forward of a one-off council tax discount for 2024/25, which would effectively achieve a freeze for the next 12 months.
“I will now pursue the council’s share of the £62.7m of the funding the deputy first minister has now confirmed is available following the UK spring budget through COSLA.
“All councils should be entitled to a share of this funding irrespective of the decision they took on council tax.”
What's the cost to taxpayers?
The decision at Inverclyde’s budget meeting, which took place on Thursday, February 29, means the Band D level will increase to £1,547.01 – an extra £2.25 a week – in 2024/25.
The local authority had initially been facing an estimated £12.5 million funding gap over the next two financial years.
However, its spending and council tax plans, as well as use of reserves, mean it has fulfilled its legal obligation to set a balanced budget.
Robison won't give up on residents
Responding on Friday, Ms Robison said: “I held a positive meeting with the leader and deputy leader of Argyll and Bute Council today to discuss the council’s particular circumstances.
“This follows confirmation of the £62.7m that was previously contingent on the outcome of the spring budget. Discussions will continue to resolve any outstanding issues.
“I am disappointed that talks with Inverclyde Council were less productive. The position offered by the administration could leave Inverclyde residents uniquely disadvantaged during the cost of living crisis.
“The £2.9m available to Inverclyde Council from the Scottish Government would fully fund the 8.2 per cent council tax rise councillors voted for.
“I will continue to press Inverclyde Council to accept the council tax freeze for the benefit of their residents.”