Glasgow considers raising council tax to boost local services like street repairs amidst budget talks.
The city council will discuss the budget this Thursday. Ricky Bell said a tax rise is likely, potentially around six or seven percent. He is negotiating with the Green party on the budget, but the final plan isn’t yet fixed.
A 7% tax increase affects Band D homes. These households might pay about £1,604, which does not include water charges. Scottish Water bills are also going up. The average monthly increase will be £44 yearly, which equals a 9.9% increase.
A Band D home may pay £600 for water in 2025/26. Council tax for Band A homes could be £1,069, while Band B might pay around £1,247. Those in Band C could pay close to £1,425. Band E could face £2,107, and Band F £2,606. These figures exclude water charges.
Bell spoke with community councils, saying people liked the plan to improve Glasgow. The SNP wants to invest in key areas, including parks, streets, and potholes.
Bell cites better than expected government funding, mentioning an additional £36m. The council will invest some of this money and may also raise more. This could mean a council tax increase, and the extra 2% boost will focus on community.
Austerity measures have had a huge impact, and he hopes this budget shift helps recovery. The council agreed to £25m of cuts last year for the upcoming year.
After talks with the EIS union, changes emerged. Planned education cuts are now gone, and no teaching jobs will get cut. The Green party also supported removing the cuts. Bell stated saving teacher salaries was necessary, as they previously had few other monetary options.
The Scottish Government gave more money this year, and they then removed teacher savings from the budget. The council will work with the union, and they plan to restore the teaching positions lost before.
The council has a £10.2m pressure, resulting from national insurance contributions. A budget support fund could cover it, coming from a 2022 reserve.
Bell said the UK Government did not pay fully and Glasgow has a £15m gap to fill. The Scottish Government gave £5m. “We still have £10m,” Bell said.
He feels this hinders city investments. Bell says investment is needed in Glasgow now and will revitalize the city. Other councils may raise taxes more, and Glasgow could have one the lowest rates.
He stated councils need to cover “their national insurance debt”. A change in PFI deal accounting started the budget fund, freeing up £80m previously.