Challenge to the tax hike plan

Two new rival amendments to the budget are expected to be tabled by councillors.

The new bids could see either no increase, or an increase of just two per-cent in council tax rates being implemented, if successful.

A motion proposed by the SNP group of councillors would see council tax rates held at current levels with the budget shortfall being funded from increased use of Comhairle’s balances, with £3.1m being proposed, and with £880k coming from reserves.

A separate  motion put forward by Councillor Charlie Nicolson could see a two per-cent increase in the local tax, with £657k of balances being used, to bring the Comhairle’s budget to a break-even position.

In addition, the motion by Cllr Nicolson opposes plans for specific savings in the Comhairle’s proposed budget, and the SNP group’s motion calls for additional funding for £80k for dental services at Sacred Heart Care Home in Daliburgh, and £100k being made available to the Integration Joint Board (IJB) to fund support for Bethesda Hospice.

The near 5 percent rise in council tax, with proposals for £2.6m of service savings, and a plan to use £1.6m of its balances to reach a break even point had been proposed in a report completed by the Comhairle’s Chief Executive and Director of Assets, Finance and Resources.

That plan was this week being put to the Comhairle’s committees with a recommendation to support.

Amongst the proposals for service savings in the officers’ report were plans to increase child care charges for children under 3 years old - who are eligible for free child care - by 25 per-cent.

There will also be an increase in monthly sports centre membership fees.

A review of school janitor services, and a proposal to save £320k in a review of school staffing , with teaching curriculum redesign and extended use of e-Sgoil.

Proposals also recommend the roll-out of ‘Executive Headships’ for schools, saving £230k, and closing toilets  at Perceval Square in Stornoway with the bus station used as a site for unmanned toilets.

Cllr Nicolson’s amendment proposes deletion of plans to review janitor  services and toilets in town.

His motion also opposes a proposal to save £55k through a review of respite care provision and £100k in ‘revenue match funding’.

During a meeting of the Comhairle’s Education, Sport and Children’s Services Committee on Tuesday, the Comhairle’s Director of Education, Bernard Chisholm, addressed Cllr Nicolson’s concerns over the proposed savings plan, stating that the janitor service review had arisen as existing provision of the services across the schools was based on an ‘out-dated’ formula.

The review was not, Mr Chisholm stated, a proposed cut but a recognition of the role janitors now play in education service delivery, and that a ‘geographic review’ of services was now required.

Following Mr Chisholm’s intervention, Loch a’Tuath councillor Calum MacLean stated that the wording of the proposal had been misleading and should be clarified, stating: “it is important that it is not saying that it is a reduction but a new way of working.”

With regard to child care costs for under threes, Mr Chisholm said parents who had paid for additional hours “are now not doing that” as a result of increased free provision, and assistance would still be available for those “in greatest need”.

Chair of the Education Committee, Cllr Angus McCormack, stated that the items identified as savings should not be considered as a “cuts agenda”, and that the Comhairle was aiming “to achieve a balance without a reduction in services”.

Leader of the SNP group of councillors, Cllr Gordon Murray outlined the group’s hope that their amendment “will get support from other councillors rather than hitting our communities with another maximum council tax rise which is unfair.”

“Giving support in resources to Bethesda hospice and dental services in South Uist is hugely important to the group and the communities across the islands”, Cllr Murray concluded.

Councillors on the Communities and Housing Committee were asked to back the recommendation to support the budget plans proposed by the Chief Executive and Director of Assets, Finance and Resources.

But, with alternative proposals already submitted, a number of councillors opposed to elements of the plan and the council tax increase, expressed confusion at the budget setting process and were concerned about backing proposals they did not support.

A new budget setting process has been introduced this year. The committee chair and officers clarified that councillors were only being asked to back the proposals as they affected issues relevant to their remit.

With council tax rates in the remit of  the Policy and Resources Committee and Full Council, consideration of the amendments was on-hold until those committees meet. It remains unclear in the meantime if the amendments will get sufficient backing to succeed.

In a statement, the Comhairle claimed that although this year’s proposed funding from the Scottish Government amounted to an increase, the extra funds included ring-fenced monies for Health and Social Care and for an expansion in Early Years education provision.

They continued that after delivery of those ring-fenced items the settlement amounts to a cut in its budget.

Comhairle figures show that the proposed five per-cent council tax hike would mean a rise of just over £1 per week for three-quarters of local households, reducing the deficit faced by the Comhairle by £187k.

Western Isles MSP Alasdair Allan defended the Scottish Government’s position and local government settlement, saying:

“The Scottish Government has had to contend with a decade of Tory austerity and cuts by the UK Government.

“Despite these challenging circumstances, overall funding for Local Government as a share of the Scottish budget is being maintained at around 27 per-cent.

“Quite rightly, the Comhairle receives the second-highest revenue funding settlement per head of population, and this year will be receiving an increase of more than £900k.

Alasdair Allan concluded: “I am aware there are concerns over the funding formula for local authorities and recently organised for the Comhairle to meet with Cabinet Secretary for Finance Kate Forbes MSP to discuss this in more detail.”

Budget figures are subject to approval by the Scottish Parliament, which won’t be complete until March 5th, and changes may happen, but as the UK Budget is not due until March 11th further impacts on the Scottish Budget might also occur.