Perth and Kinross councillors have recently voted to support a financial strategy that includes a 10% increase in council tax for the years 2025/26 and 2026/27, followed by a 6% increase in 2027/28. This decision was made during a meeting on Wednesday, where the council members also endorsed a plan to allocate an additional 0.25% of council tax income each year to support the council’s capital budget.
The controversial decision was met with differing opinions among the councillors. SNP council leader Grant Laing defended the move by stating that it would put an end to the continuous budget cuts the council has been facing. However, Conservative leader John Duff raised concerns about making such a decision before knowing the outcome of the Scottish Budget.
Despite the debates, the 10% council tax increase strategy was ultimately passed with 22 votes in favor and 15 against. This decision was supported by the SNP group, three Lib Dems, and two Independents, while the Conservative group, two Lib Dems, and two Independents voted against it.
During the meeting, SNP councillor Stewart Donaldson criticized the UK Labour government’s decision to increase employers’ National Insurance contributions, while Liberal Democrat councillor Willie Robertson expressed reluctance to vote for an increase that would make people financially worse off. Cllr Peter Barrett, who supported the strategy, accused previous governments of freezing council tax at the expense of necessary revenue for providing essential services.
Looking ahead, councillors are set to meet in February 2025 to finalize the three-year revenue and capital budgets for Perth and Kinross Council based on the strategy approved in the recent vote. Meanwhile, the Scottish Government announced record funding for councils, with Finance secretary Shona Robison emphasizing that there should be no need for significant council tax increases next year.
In conclusion, the decision by Perth and Kinross councillors to approve a 10% council tax increase over the next few years has sparked debate and differing opinions among the members. The focus now shifts to how the council will utilize this additional revenue to maintain essential services and address financial challenges in the region.