Inverclyde announces 8.5% hike in council tax

Inverclyde has announced an 8.5% hike in council tax from April.

At a full council meeting on Thursday, councillors approved a £260m revenue budget, a three-year £65m capital budget, and the increase to the levy.

The council tax increase will mean an extra £121.53 per year – or £2.33 per week – for the average Band D household.

Approximately 9,000 (24%) of households would be protected from any Council Tax increase due to receipt of Council Tax Reduction (CTR), whilst a further 2,200 properties receive full exemption.

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A nationwide freeze on the levy ends in April meaning local authorities can increase it by however much they like.

The council said the increase is to help plug a £4.2m funding gap facing the council in 2025/26 alone and a projected £16m shortfall over the next two years – and support frontline services.

The budget and council tax proposals were put forward by council leader Robert Moran and seconded by depute leader Natasha McGuire on behalf of the members’ budget working group (MBWG), which comprises councillors from different political groups and also independents.

Councillor Moran said: “Council services support all our lives every day in different ways.

“Everything we do matters and makes a difference in people’s lives here in Inverclyde. That’s why setting the council budget is so challenging.

“Year-on-year, local government grants have been cut, and Council Tax frozen or capped.

“This year we had a better settlement and a free hand to set Council Tax, which is very welcome, but let’s not forget our financial situation is caused by years of austerity.

“For 15 of the last 18 years Council Tax has been frozen or capped.

“It will come as no consolation to the people of Inverclyde that the 8.5% increase in Council Tax here is less than the double-digit increases we are seeing in other local authority areas, which shows the scale of the financial crisis facing local government.

“The MBWG has worked hard over these past weeks and months to develop proposals that protects and invests in vital frontline services while keeping increases to Council Tax, fees and charges, and cuts to jobs and services to an absolute minimum.

“For most people, the weekly increase in Council Tax amounts to less than a cup of coffee and in return we are able to invest in children and families services to help support some of the most vulnerable young people in our community, deliver extra support for ASN initiatives, and provide additional help for those who are struggling financially through extra anti-poverty and employability funding.”

The 8.5% Council Tax increase for 2025/26 will raise an additional £2.975m with the remaining £1.245m being met through the use of reserves.

The Council Tax rise will mean an increase of between £81.02 per year – or £1.55 a week – for those in the lowest Band A properties, which accounts for 46% of Council Tax payers, up to an extra £297.75 – or £5.71 a week – for people living in the highest Band H properties, of which there are 217 chargeable properties.