A COUNCIL tax freeze could have serious repercussions for council services in Renfrewshire, furious politicians have claimed.
The first minister’s announcement to support people during the cost-of-living crisis has sparked a backlash among local Labour and Conservative groups.
Humza Yousaf said the freeze for 2024/25 will be fully funded by the Scottish Government, but opposition elected members are fearing the worst – demanding an explanation on where the resources will come from for the policy.
Renfrewshire Council’s most recent calculations project a funding gap of £45 to £50 million for 2024/27 – but the local authority has been working on an assumption of a five per cent uplift in council tax each year, which would reduce it to £30 to £35m.
Councillor Alison Ann-Dowling, Labour group finance spokesperson, said: “SNP councillors who support this shock announcement need to answer one question to the people of Renfrewshire – where is the money coming from?
“Because be in no doubt, jobs could be in the balance if the council doesn’t have enough money coming in to cover running costs.
“When council tax was frozen by the SNP the last time the wealthiest households saved three times the amount the poorest did, and it was paid for by putting up charges and cutting back services the most vulnerable relied on.
“That’s unacceptable at the best of times, never mind the worst cost-of-living crisis in generations, so I have serious concerns.”
The deficit facing the local authority means approximately £35m in savings are being targeted over the next three years – a stark figure for a council that has delivered more than £170m in savings since 2011.
Council tax has been a key source of revenue for local authorities.
Councillor David McGonigle, Conservative group finance spokesperson, said: “Humza Yousaf and the SNP government must explain how they will give Renfrewshire Council every resource they need to implement this freeze.
“While any measure to support hard-pressed families is welcome, it cannot come at the expense of yet further cuts to local services that they rely on each day.
“That is why it is astonishing local authorities were not consulted on this plan before it was announced.”
However, some have defended the first minister’s decision – including SNP councillor Robert Innes, who believes it will help struggling households deal during a time of rising costs.
He said: “Council tax is a bill that most households dread, especially as councils have more leeway to increase it.
“The proposal for a council tax freeze will be welcomed all across Renfrewshire and Scotland.
“It will help households who are struggling with the Tory-created cost-of-living crisis.
“Obviously there still has to be some discussion between councils and the Scottish Government to ensure that this freeze does not impact on local services, but that was managed before when we had a council tax freeze and I’m sure it will be worked out again.”
A Scottish Government spokesperson said: “The one-year freeze to council tax will benefit every council tax-payer in Scotland at a time when rising prices are putting significant strain on household finances.
“Both the first minister and deputy first minister have held constructive meetings with local authorities to discuss their concerns. They reiterated the fact that the Scottish Government will be fully funding this freeze.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here