COUNCIL tax could rise by 6.5 percent in Dumfries and Galloway for the year ahead — if councillors stick to their guns.
A council tax freeze was implemented last year after all political groups agreed to follow a Scottish Government plea not to increase charges.
However, the Conservatives, Labour and SNP groups all stated their desire for a council tax rise of 6.5 percent to be imposed in the following two years.
And with the cash-strapped council facing a funding gap of nearly £12m for 2025/26 – rising to £34m within three years – some tough financial decisions need to be made.
Next week, the council’s annual budget setting meeting will take place where the main political groups will put forward their best financial proposals to continue providing key services —whilst also cutting debts.
Gillian Ross, the council’s finance and accounting manager, produced a report laying out the grim figures.
She wrote: “The 2025/26 funding gap is £11.799m, increasing to £34.324m by 2027/28 (year three).
“This provides members with the basis from which budget proposals should be developed.
“Members and political groups have been provided with support on the approach to addressing the funding gap.”
She continued: “Each one per cent increase to the council tax level in Dumfries and Galloway generates around £850,000 per annum.
“In contrast to previous years, the Scottish Government has placed no freeze or cap on council tax increases for 2025/26, thus providing councils with discretion to set council tax levels based on local requirement.”
If the political groups do opt for a 6.5 per cent council tax increase this year, it will generate £5.525m.
This would reduce the council’s deficit for 2025/26 to £6.274m.
A range of budget savings, which could save a further £5.3m, went out to consultation last year.
However, not all of these options – which included cutting funding for the Youth Beatz festival and changing the mothballing threshold for schools – were popular with residents.
Political groups were then able to request further measures to be identified which could potentially form part of their preferred cost-cutting proposals next week.
Councillors from each political group have recently been doing their sums alongside council finance officers and are expected to submit their finalised budget proposals this week ahead of next Thursday’s budget meeting.
