All of South Ayrshire Council’s service charges and council tax payments will increase by 2.9 per cent from April to bridge a £6.7m shortfall.
The council opted to make less than £900,000 in new cuts and savings ahead of May’s local elections.
Instead, the 2.9 percent tax increase will bring in an additional £2.21m, with just over £3m in reserves being utilised.
This leaves new cuts and savings totalling £892k to add to the £630k previously agreed.
This will see £175k saved through the development of its ‘future operating model’ which includes cuts to car mileage payments, supplies and other services.
An increase in ‘payroll management’ targets will save a further £500k, while the increase in fees and charges by 2.9 percent will bring in £217k. This applies to council only charges, not those set at a national level or by the council’s partners.
Around £550k will be made from ‘over-recovery of rent from homeless temporary accommodation’.
The budget set out an estimate of future funding gaps by 2023/24. This ranges from a best case scenario of £6.18m to a worst case gap of £20.3m.
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Introducing the budget, SNP Council Leader Peter Henderson addressed the challenges facing the council.
He said: “We know that rising living costs such as energy and food bills are having a huge impact on hardworking families. As a council, we are also affected by rising costs and tax changes such as the imminent increase in National Insurance contributions.
The budget plans include:
- £3.1 million from uncommitted reserves for ‘frontline services’
- £250,000 from general reserves on a one-off basis to assist in alleviating financial insecurities of those most in need.
- £88.175 million in Health and Social Care Partnership, an increase of 11% on last year.
- Further investment of £6.6 million in education.
- Invest £1.8 million in a brand-new net-zero depot in Girvan
£460 million for Capital Investment projects from 2022-23 to 2033-34 including:
- An extension at the Early Years Centre at the Space Place in Prestwick.
- An upgrade to the science department at Kyle Academy.
- A gym upgrade for Prestwick Swimming Pool.
- Riverside Public Realm space.
Councillor Henderson said: “The decision to raise Council Tax is not one that was taken lightly.
“I know that the increase may not be welcomed, however, we have reviewed every possible option, and it is a vital step to protect our essential services and allow us to continue to be there for the people who need us most.”
Councillor Brian McGinley, deputy council leader, said: “I’m pleased that we have been able to deliver a fair budget that demonstrates our continued commitment to investing in our communities.
“Although we have had to make some difficult decisions, we will continue to invest in services that will ensure South Ayrshire is one of the best places to live, work or visit.
“We have performed our very best to keep increases below inflation and are very mindful of the additional financial burdens being placed on residents.”
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