East Renfrewshire residents could face council tax hike of almost five per cent

Council tax in East Renfrewshire could rise by almost five per cent as part of plans to plug a budget gap of around £18m.

The authority’s leader Tony Buchanan revealed he will propose the 4.84 per cent increase, the maximum allowed by the Scottish Government, at today’s (Thursday) budget meeting.

He said the tax rise would raise £2.7m towards covering the shortfall, with savings of £11.8m also outlined. The remaining £3.5m would come from the council’s reserves.

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Cuts could be made to devolved school management budgets, additional support for “some of our lowest performing” pupils and funding for the East Renfrewshire Culture and Leisure Trust.

However, the council is planning to push ahead with capital plans, including six new nurseries and more council houses.

The authority expects a £189.4m settlement from the Scottish Government, which is its biggest source of funding.

Mr Buchanan said: “We live in very challenging financial times.

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“The cash funding we receive to spend on our day to day services has been reduced by about one per cent on a like for like basis.

“We have still delivered a budget which tackles the savings gap, balances the books and protects front line services.”

He said the council tax increase was an “extremely difficult decision”. 

“It’s not a decision we’ve taken lightly because we know it does put an extra burden on our residents.

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“Without generating the additional income, there would have to be further reductions in funding for our schools, to the public infrastructure services such as roads, parks and cleansing services. It’s about providing those services.”

He said last year’s three per cent rise was “well below the maximum we were allowed to increase”, meaning the cost for a Band D household was below the Scottish average.

Council tax for a Band D household will cost £1,289.96 in 2020/21, up from £1230.41 in 2019/20, if agreed on Thursday.

Around £10.5m of savings have already been identified, with £6.8m previously agreed. There would be £3.7m of new savings and £1.3m would need to be found over the next year.

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These “difficult” new savings include £442,000 from reducing support for the lowest 20 per cent of pupils, taking £360,000 from school management budgets and increasing the culture and leisure trust’s savings target from £110,000 to £211,000.

There is £65,000 of savings outlined through removing recycling points and £15,000 from removing a hanging basket scheme.

Increasing income from parks and grounds maintenance could bring in £100,000 and £2m of savings have been identified through a review of Loans Fund flexibility.

Previously agreed savings include removing PSA classroom assistants and bilingual support workers in schools.

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There is £3.2m of targeted savings for the Integration Joint Board, a partnership between the council and NHS Greater Glasgow and Clyde.

Mr Buchanan said the budget process has been “complicated” by the UK Government’s decision to hold off revealing its own budget until March 11, the same day Scottish local authorities have to set their tax rates.

Chancellor Sajid Javid also resigned this month, with Rishi Sunak taking over.

But he said the council “remains committed” to a “wide range of ambitious projects”, with almost £210m to be spent on capital plans over the next 10 years.

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Two thirds of that money will be spent in the next three years, he added.

This includes almost £25m on nurseries at Busby, Clarkston, Cross Arthurlie, Eaglesham, Newton Mearns and Thornliebank and around £30m on leisure and learning facilities in Neilston.

Hundreds of new council houses are being built in Barrhead and Newton Mearns and the authority will continue with plans, revealed last year, to invest £3m a year in improving the area’s roads.

Resurfacing has been carried out at almost 30 locations in the last year.

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Money is also being invested in improving facilities at Bonnyton House care home.

Mr Buchanan also said “significant challenges lie ahead”. His authority had hoped for a multi-year budget settlement but had only been able to plan for next year.

He anticipates a three-year budget will be set in February 2021 and said forecasts for 2021/2022 already show a £12.4m shortfall.

Council Tax: 2020/2021

Band A – £859.97

Band B – £1,003.30

Band C – £1,146.63

Band D – £1,289.96

Band E – £1,694.87

Band F – £2,096.19

Band G – £2,526.18

Band H – £3,160.41

Council Tax: 2019/20

Band A – £820.27

Band B – £956.98

Band C – £1093.70

Band D – £1230.41

Band E – £1616.63

Band F – £1999.42

Band G – £2409.55

Band H – £3014.50