Dundee’s SNP administration are to propose a “modest” 2.5% rise in council tax at next Thursday’s budget meeting.
The administration’s finance spokesperson, Bailie Willie Sawers, said more than 80% of the city’s households will see a rise in council tax of less than 60p per week.
The increase will contribute toward a £1.3 million investment fund in the city, which Bailie Sawers said would help prioritise “jobs, fairness, and young people”.
Residents living in council tax band A properties will see their council tax bill rise by £20.18 a year, while those living in band H properties will pay an extra £60.55, under the administration’s proposals.
Labour leader Councillor Kevin Keenan said the increase would not raise enough funds for services hit by “devastating” cuts as a result of the council tax freeze.
The Labour group will propose an increase of 3% to council tax at next week’s meeting.
Councillor Keenan said: “We will review the position before next Thursday as soon as we are aware of the full amount of savings that make up the combined efforts of all the political parties in the hope to minimise further cuts in services.
“After a 10 year council tax freeze, we would increase the council tax by 3% and use that additional income to reverse some of the devastating cuts that the SNP administration have administered to Dundee on behalf of the nationalist government over recent years.”
Lib Dem representative Councillor Fraser Macpherson said the proposals were unfair, in particular for residents living in the west end.
He estimates 24% of properties in the ward are registered as council tax band E to H, which will be affected by the additional increase of 2.5% levied by the Scottish Government.
He said: “The increased charges caused by the banding changes will be between £111 and £545 every year, depending on the band, and the way this has been done is quite unfair. I am particularly concerned about households living on a fixed income.”
Councillor Sawers said: “Our budget prioritises jobs, fairness, and young people. It is an important package of investment in the city’s future, and has no impact on front line services.
“There is a £1.3 million package of investment funded by a modest 2.5% rise in council tax which, for more than 8 out of 10 households, will mean an increase of 60p per week.
“I think people in households in Dundee have benefited hugely from the council tax freeze over the past ten years, by hundreds of pounds per household.
“I am delighted to have been part of an administration that has worked in partnership with the Scottish Government. I think 2.5% is a modest rise, given the freeze for the past ten years.”