Councillors agree to freeze Council Tax
Councillors have approved a freeze in Council Tax rates and set a balanced budget for 2024/25.
More than £295 million for council services
At the full Council meeting on Tuesday, councillors accepted the Scottish Government Grant offer of £2.87 million to support the freeze and approved spending of £295.22 million on council services.
More money for foster carers
There will be no reduction to existing services, with councillors agreeing to maintain investment in all council services, as well as an additional 5.5% for fees for foster carers.
More money for health and social care
Councillors also agreed an amendment to give the Midlothian Integrated Joint Board an additional £2.68 million in recurring funding from 2024/25. Council funding for the integrated joint board for health and social care services will now be £63.546 million in 2024/25.
No new cuts to services
Thanking officers and elected members for helping ensure Midlothian residents get the best possible level of public services, Midlothian Council Leader Councillor Kelly Parry said: “When we sat in this chamber this time last year we had a budget gap of over £7 million staring at us, so it’s a welcome reprieve for our residents and our partners that are affected by budgetary decisions to see us present a balanced budget."
Difficult decisions
Acknowledging that with a projected budget gap of £20.88 million by 2028/29 and the fastest growing population of any local authority in Scotland, difficult decisions lie ahead, Cllr Parry highlighted some of the positive measures in the budget.
Helping relieve pressure on families
She welcomed the agreement to freeze school meals and increase funding to the IJB adding: “And whilst there is much to debate about the council tax freeze, this will also relieve pressure and worry on families facing in-work poverty. As previously agreed earlier, the budget also includes an uplift for foster carers, a fantastic example of preventative spend and a symbol of this council’s appreciation for the work that foster carers do, and the value we place on our looked after young people.”
Scottish Government funding
Midlothian’s estimated share of total Scottish Government Funding is £227.26 million, not including the £2.87 million Midlothian will get from the government for freezing Council Tax. This will be confirmed after the final stage of the Scottish Budget Bill goes through parliament today (27 February).
Bridging the budget gap
The main measures that will help bridge the budget gap in 2024/25 are:
- Midlothian’s share of national funding is up by £2.571m because of our increasing population.
- We’re also applying what’s known as retrospective service concessions to reduce the budget gap by £4.093 million in 2023/24 to 2026/27 and £4.091 million in 2027/28. Retrospective service concessions are financial arrangements with, for example, PPP contractors to build schools. Savings arise from accounting for assets over the period of use rather than the period of the PPP contract.
- Removing the Non-Domestic Rates Empty Property Relief for most commercial buildings which is anticipated to raise an estimated £250,000 income.
- Applying a supplement of 100% on the full rate of Council Tax on second homes will provide additional recurring income of approximately £100,000.
- Increasing fees and charges will bring in additional income of £117,000.
- Savings of £1.980 million agreed last year, will also come from increasing garden waste fees, making better use of council buildings as staff continue to embrace hybrid working, transforming the school week and digital transformation (making it easier for customers to do more online).
Water charges will rise
While the Council Tax will not go up in 2024/25, householders’ total bills will rise due to the increase in water supply and waste water collection charges, collected on behalf of Scottish Water.