Falkirk Council considers a tax rise up to 20 percent, plus fee increases & service cuts, to tackle a large budget shortfall.
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A 7 percent tax rise leaves a £27.9 million shortfall. That is just for the year 2025/26. Costs are up, and service demand is higher. Scotland’s government gives less money too. This cost increase affects all Scottish councils.
Pay rises impact employer’s National Insurance. Balancing the budget is now a legal duty. They must use tax, fees, and cuts.
Falkirk’s council tax has been low historically. It was eighth lowest in Scotland last year. Yet, population ranks eleventh. Also, deprived areas rank thirteenth.
The council’s report shows different tax increase incomes. A 7 percent rise adds £95 yearly for Band D homes. 10 percent adds £136. 20 percent adds £273 each year.
Low-income homes get council tax reductions. These roughly number 13,500 residents. These households won’t feel the hike.
The council also considers an extra tax increase. A 1 or 1.5 percent increase would fund projects. These projects could include improved roads and buildings.
Other council service fees may increase too. Parking charges could rise by ten percent. Brown bin fees could go up by seventeen percent. School meals could rise by eleven percent.
These meal increases would equal 30p a meal.
Childcare fees may also increase, they suppose. Under-two fees could rise five percent. Over-two fees could rise fourteen percent. These childcare fee changes could raise £1.5 million.
Politicians haven’t decided anything yet. They must balance savings and community impact. The report states options are running out. Falkirk used past funding to avoid tough choices.
This was from public-private school funding. This past year, they used £22 million to balance the books. They must halve that amount this year.
The council wants to fund some improvements. They plan to upgrade schools in the district. A replacement town hall might get built as well. They could also upgrade leisure facilities.
The council already cut millions in costs. They did so without councillor approval. The council is shedding jobs to save money. They consult unions. They need voluntary redundancies. The Chief Finance Officer speaks of tough choices.
Council officers presented options to councillors. Councillors must make informed decisions on March 6th. Raising tax, fees, and cutting spending are hard.
These steps greatly impact residents and services. Councillors must consider every option, she states. Fundamentally, spending exceeds the income quite a bit. This situation simply has to get fixed now.