A SENIOR councillor has defended a potential 10 per cent council tax hike in the Borders next year.
Scottish Borders Council (SBC) is considering the substantial increase as it begins to address a possible £50m black hole in its finances over the next decade.
A 10 per cent increase in council tax would result in 70 per cent of residents facing a rise of £2.60 or less a week, SBC executive member Leagh Douglas told the full council on Thursday, October 24.
The Selkirkshire councillor added: “For over half of that 70 per cent it equates to less than £2 a week.”
Members considered a report on budget planning “assumptions” for the financial year 2025/26.
Ms Douglas said: “A 10 per cent increase will provide us with an additional £7 million. That’s £7m towards our revenue budget for service delivery – our roads, swimming pools, libraries, other cultural offerings, refuse collection, parks and graveyards maintenance etc.
“To further contextualise, the council tax will account towards 20 per cent of council funding, with the Scottish Government grant, on past record, having made up the balance of around 80 per cent and it’s on that basis that we’ve made the current assumption.
“I hasten to add, however, that early indications from Scottish Government lead us to have some concerns around the level of government grant we will receive in 25/26.
“Unfortunately we will not get that local government spending settlement until mid-December, so up until that point we must remain mindful of potential risks to any decisions we make.
“For example, if Scottish Government choose to cap council tax at five per cent or indeed if they decide, as they did to our enormous surprise last year, to freeze council tax, we need to think carefully.”
Hawick and Denholm councillor Stuart Marshall expressed concern at the prospect of a 10 per cent rise and its potential impact on already-struggling residents.
He said: “Before I could ever accept such a hike in council tax I would need to be convinced that all the necessary support mechanisms were in place and indeed bolted down in order to support struggling families.”
Tweeddale West councillor Viv Thomson called on elected members to be mindful that even an increase of “only” £2.60 a week represented a lot of money for some people.
She added: “It may not seem a lot for some but for others it’s a huge amount to find.”
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