By Brian Allison and Ian Findlay

DUNDEE’S COUNCIL tax payers will have to stump up nearly 4% more for their bills from the start of the next financial year.

City councillors agreed yesterday—without a vote—to implement an increase of 3.96%, meaning that band D householders will have to pay a total of £1180, compared to £1135 during the current year.

The increase, although significantly below what had previously been expected, is still around twice the rate of inflation and is likely to leave Dundee at the top end of council tax rates in Scotland.

The rate was set without the need for a vote when it emerged during the series of meetings required to determine the budget for the coming financial year that the SNP opposition group’s budget was effectively identical to that of the administration.

Despite the unanimity over the figures, however, the final meeting still degenerated into a shouting match between finance convener George Regan and the SNP group’s finance spokesman Joe FitzPatrick.

Mr Regan interrupted Mr FitzPatrick when the SNP councillor sought to introduce comments which the convener regarded as irrelevant to the issue under discussion.

Both men ended up shouting at each other across the council chamber and eventually Councillor Regan brought the meeting to a close before Mr Fitzpatrick was able to finish his speech.

No indicative council tax figures for the following two financial years have been set because of uncertainties surrounding the levels of funding from the Scottish Executive.

Senior councillors from Dundee have already had talks with Scottish Finance Minister Tom McCabe over the issue.

The council tax increase agreed yesterday means there will be no cuts in the council’s revenue budget during 2005/6.

However, there will be increases in many of the charges made for services provided by the council, including car parking, some leisure charges and school meals. Other charges will be frozen, including those for pre-school education.

The process for establishing the city council’s budget for 2005/6 first began months ago and the final stage yesterday began with brief meetings of first the education committee and then the policy resources committee, with both agreeing to refer their proposed expenditure figures to the finance committee, where the new council tax rates were set.

Proposing the administration’s 2005/6 revenue budget and council tax, finance Mr Regan said that as a result of “sound and prudent financial management,” the administration had been able to minimise council tax rises over the last five years to an overall increase of just 9.8%, equivalent to an average annual increase of 1.9%, well below the rate of inflation.

“The five year council tax increase of 9.8% compares very favourably with the Scottish average of around 24% and means that Dundee city has had the lowest cumulative council tax increase of all the 32 Scottish local authorities,” he said.

“In 1999 we inherited a council tax that was 20% above the Scottish average as a result of the mismatch of funding that the city received from central government.

“Through stringent financial control and effective efficiency measures, we have now reduced that differential to less than 7%, without any impact on services.”

Mr Regan said that the 2005/6 local government finance settlement is the first of a three-year cycle. He said the grant figures for the following two years were based on new population indicators.

“Dundee’s actual and projected population decline has had a marked effect on these calculations,” he commented.

He described Dundee’s financial settlement for the later years as poor and said both he and administration leader Jill Shimi had met the finance minister to underline the seriousness of the issue for the city. They had had “a good hearing,” with the possibility of a review of the figures for the later years.

The finance convener said that the revenue budget would mean over £360 million being invested in the provision of council services in the next year.

Councillor FitzPatrick told the finance committee there had been a considerable degree of joint working among the parties in producing the budget proposals. However, they still had a council tax increase that was well above the rate of inflation.

“This is, of course, an increase added to a council tax that is already one of the highest in Scotland,” he said.

He attempted to argue his party’s case for the abolition of the council tax system and its replacement with a local income tax, but it was at this point that Mr Regan, who was chairing the meeting, interjected and advised Mr Fitzpatrick to confine his remarks to the issue under discussion, namely the council tax proposals.

Raising his voice, Mr FitzPatrick attempted to carry on with his prepared speech but Mr Regan also raised his voice and the two councillors engaged in a protracted and loud argument, which only ended when the convener brought the meeting to a close.

Increases in charges agreed are expected to bring additional income for the council of £347,000.

Among the increases are:

* School meals—primary schools, from £1.55 to £1.60 and secondary schools from £1.60 to £1.65, both to take effect from August.

* Music tuition fees—up from £99 to £102 and hire of instruments from £57 to £60.

* Parking charges—off-street parking for up to two hours to remain unchanged; for two to three hours up from £1.50 to £1.80; three to four hours from £2.50 to £2.80; four to five hours from £3 to £3.50; five to six hours from £3.50 to £4; and over six hours from £5 to £5.50. Off-street (long stay) for up to four hours from £2 to £2.30; and a new charge for over four hours of £4.50. There will no increase for off-street parking in Broughty Ferry.

On-street parking—city centre—one hour up from £1 to £1.30; Perth Road—up to two hours increased from £1 to £1.30 and two to four hours from £2 to £2.30. The same increases will apply for Dudhope Street, Barrack Road, Hilltown and Dudhope Crescent Road. Dudhope Castle—all day up from £1.50 to £1.80.

* Civil marriage ceremonies—within council premises, increased by £10 to £300 and the same amount to £240, depending on the committee room venue at the City Chambers and, outwith council premises, up by £5 to £165 from Monday to Friday and £6 to £216 on Saturdays.

* Family tree research fees—one of the biggest increases in percentage terms, from £15 an hour to £22.50 an hour. The service has proved increasingly popular since it was introduced by the council.

Broughty Ferry ward councillor Charles Webster said he was glad to see that there was to be a one-year freeze on car parking charges in the area.

Mr Webster said the freeze on charges was necessary in light of all the upheaval there had been in Broughty Ferry associated with the traffic changes in and around Brook Street.