Council Tax Frozen and Frontline Services Protected as Council Agrees Budget

Elected members voted to freeze council tax for the financial year 2024/25 while protecting frontline services.

Due to a combination of a reduction in funding through the Local Government Finance Settlement plus inflationary and service cost-pressures, the council faces an estimated funding gap of £30 million over the next three years.

To meet the shortfall in the coming year, Dumfries and Galloway Council will draw upon £6.46M* of existing reserves in a bid to protect council services.

In addition, the council will implement a range of revenue-raising measures - from a 100% rise in council tax charges for second homes to increases on selected fees and charges relating to registrars, planning and building warrants and harbours.

Elected members also agreed to £6.48M of additional investment, including an extra £1.05M on improving the region's roads, £1.49M for Children and Families Social Work and £1.83M of cost-of-living support.

In addition, the budget reflects the council's commitment to the following expenditure on capital investment projects:

• An additional £11M to increase the Dumfries High School project budget to £56M to enable the project to progress to construction.
• An allocation of £7.6M to support the work required to remove RAAC (Reinforced Autoclaved Aerated Concrete) from all council buildings over the period 2024/25 to 2026/27.
• An allocation of £11.2M to enable a new Household Waste Recycling Centre and waste-bulking facility to be created to support the council's agreed Waste Strategy and increase recycling rates.
• Increased investment in existing council assets - such as including roads, schools and vehicles - of £10M over the next 10 years in addition to the £23M allocated as part of the 2023/24 budget.

Dumfries and Galloway Council Convener, Councillor Malcolm Johnstone said: "Every year we are faced with tough decisions and this year's no different.

"Uppermost in our mind is maintaining and improving the services we provide to the people of Dumfries and Galloway, and we are fortunate that this year through prudent financial management we are able to draw on non-recurring resources to protect vital services and increase investment in targeted areas.

"However, like all local authorities, in the medium-term we face mounting costs and reduced funding. For example, no additional resources have been received from the Scottish Government to support pay increases, non-pay inflation or service pressures in 2024/25.

"This is challenging, and we would also like to see a multi-year funding settlement, the absence of which presents significant challenges for service and financial planning for all public bodies including councils.

"This combined now with the threat of sanction or financial detriment for any Scottish local authority that doesn't follow the Scottish Government's council tax freeze is not helpful for councils like ours when it comes to charting a sustainable financial future."

Councillors set the budget today for financial year 2024/25 only; the budget and council tax increases for 2025/26 and 2026/27 will be determined by Full Council in the lead up to the start of these financial years.

However, political groups are asked to present plans for the next three financial years. All groups' plans for 2025/26 and 2026/27 rely on the council making significant savings and increasing council tax to meet ongoing financial pressures.

Under the Local Government [Scotland] Act 1973 and the Local Government Finance Act 1992, a local authority must set its council tax before mid-March in the preceding financial year. A council is required to set council tax based on an overall balanced budget for the financial year.

Based on a 0% increase, council tax bandings will be charged as shown below in Dumfries and Galloway for financial year 2024/25:

You can see the Full Council meeting via our website Dumfries and Galloway Council Meetings and you can view the meeting papers at  Agenda for Dumfries and Galloway Council on Tuesday, 27th February, 2024, 10.30 am - Dumfries and Galloway Council (moderngov.co.uk) including the approved budget.

*Dumfries and Galloway Council's budget in 2024/25 is £456.09M. Its total funding is £449.63M. To balance its budget, it will use £6.46M of reserves.