West Lothian households will doubtless face a 3.5 per cent improve in council tax subsequent 12 months - and for the remainder of this council’s administration
Something much less would have a huge effect on native authority spending, the council’s director of finance instructed a gathering of the company coverage and sources coverage improvement and scrutiny panel (PDSP) at present.
The doubtless improve for subsequent 12 months’s funds comes after Westminster stepped in with a nationwide rebate for council tax for this 12 months.
Director of finance, Donald Forrest, instructed the PDSP the funds mannequin for the subsequent monetary 12 months takes account of 900 new properties being constructed so as to add to the council revenue
”It needs to be famous that any choice to extend council tax by lower than 3.5% would have an antagonistic impression on the already massively difficult recurring funds place,” mentioned Mr Forrest in his report back to the PDSP.
The Scottish common band D council tax is £1,347 in contrast with the West Lothian 2022 to 2023 band D fee of £1,314.71. West Lothian Council has the tenth lowest council tax band D fee in Scotland.
From 2017 to 2018 to 2022 to 2023 the common band D council tax fee for Scotland has elevated from £1,173 to £1,347, a rise of £174 (14.8 per cent) or 67p per week for 5 years. West Lothian’s band D fee has elevated by £186.71 (16.6 per cent) or 72p per week over the identical interval.
In England, the Band D council tax is in extra of £1900.
The report added: “The annual survey of hours and earnings for 2022 might be printed later within the 12 months. The common full-time weekly wage in Scotland elevated by 5.1% between 2020 and 2021, leading to people having a median weekly improve of £30.20, rising from £592.20 per week to £622.40 per week.”
Mr Forrest outlined a collection of mitigations in place to assist these going through monetary difficulties.
Throughout West Lothian 75 per cent of properties are in bands A to D. Of these 48 per cent are in receipt of a type of low cost or exemption.
The Council Tax Discount Scheme is in place to assist these on a low revenue pay all or a part of their council tax- covers 16 per cent of Band A to D properties.
Single particular person households with internet revenue of as much as £16,750, and all different households with internet revenue of as much as £25,000, with lower than £16,000 in financial savings are eligible to use for help by way of the scheme.
A disabled particular person discount can also be out there, which sees council tax charged on the band instantly under the band the property is in. For band A properties this equates to a 1/ninth discount.
When it comes to the projected future funds mannequin, it was primarily based on a 3.5 per cent improve in every of the approaching 5 years.
A report on the funds mannequin was thought of by council government in October 2021 and council in February 2022. It was up to date and reported to council government on June 21, 2022.
This contains key features of expenditure and revenue, together with staffing, demographics, income penalties of capital, service pressures and developments, inflation and indexation, council tax revenue and grant funding.
The council tax assumptions on this funds mannequin are a rise of three.5 per cent each year from 2023 to 2024 to 2027 to 2028, which over the five-year interval would see council tax producing an revenue of £22.224 million.
Because of numerous volatility round power and pay pressures the estimated funds hole has elevated for the reason that report in June and now stands at £47.1 million over the 5 years.
Mr Forrest added: “On this massively difficult monetary state of affairs council tax can play an essential half in serving to to steadiness the funds.”
SNP group chief Councillor Janet Campbell requested if freezes, as applied in earlier years, would put more cash within the pockets of council taxpayers. She mentioned: “May we agree this might be welcome in these troubled instances?”
Mr Forrest replied: “As with all selections, there are numerous trade-offs to be made. Clearly freezing council tax does present assist for individuals who pay council tax but it surely does additionally probably scale back the extent of revenue coming into the general public sector.”
He added: “The freeze does imply there was much less revenue into the general public sector as an entire, which does subsequently exacerbate the monetary challenges confronted by the general public sector. So it’s matter for politicians how they wish to obtain that steadiness between ranges of taxation and ranges of public service.”
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