Fife Council has approved a 5% rise in council tax as “rampant” inflation pushes up the cost of running vital services.
The Labour administration said the move would allow them to plug an £11.5 million black hole and invest in the region’s roads and buses.
And they will target further hardship support to the region’s most vulnerable people, who are suffering due to the cost of living.
Finance spokesman Altany Craik said Fife had “endured death by a thousand cuts” over the past decade but added: “This is a budget for Fife and its people.”
The council’s Conservative and Liberal Democrat groups backed the increase.
However, SNP councillors branded it “unjustified” given so many people are already struggling with increased bills.
And they proposed a rise of just 3%, accusing Labour of scaremongering.
SNP leader David Alexander said: “Saying the more council tax goes up, the more people we can help is like saying we’ll mug you but we’ll get you a taxi to the hospital.”
How much more will people pay and how will Fife Council use extra income?
The 5% council tax increase means people living in band D properties will pay £1,385 in 2023-24.
That’s an increase of £65.96 on last year’s rate, with other bands rising in proportion to this.
Mr Craik said the rise was in line with many other Scottish councils and less than some.
The move will bring in an extra £9 million and a further £8m will come from Fife Council’s reserves.
It means there will be no service cuts in Fife.
Instead, Mr Craik said an extra £3.5m would go towards fixing the region’s roads.
A further £150,000 will be invested in Cafe Inc, which provides free meals to families during the school holidays.
And £761,000 will be used to subsidise bus services to ensure people in rural areas are not isolated.
In addition, £2m will go into the council’s hardship fund, with a further £948,000 going to support other cost of living pressures.
Liberal Democrat leader Jonny Tepp said the council tax rise would also help ensure other key priorities, including returning sports centre opening hours to pre-pandemic levels and the implementation of flood defences at Freuchie Mill.
How do councillors justify a 5% council tax rise?
Mr Craik said a 3% council tax rise would wipe out the council’s reserves and jeopardise services in future years.
“The opposition budget promises cuts, cuts and more cuts,” he said.
“Inflation in double digits puts incredible pressure on our services and our ability to deliver them.
“Everything costs more but a 5% rise in council tax and £8m from balances will allow vital investment.”
He added: “Our roads are not as we would like them. We are focusing on continuing to recover their condition.”
Administration leader David Ross said there had been hard choices to make.
“We could knock a few pence off council tax as the SNP suggests but this will mean cuts to our services,” he said.
“We are facing the most significant attack on funding for local government we have seen, particularly because of the rampant inflation we are facing.”
SNP brand Labour budget statements ‘comedy gold’
SNP leader David Alexander said there was no justification for a 5% rise.
And he accused Labour of cynical scaremongering.
“There is absolutely no need for a 5% rise in council tax when inflation and the cost of living are biting as hard as they are,” he said.
“Labour, for political reasons, want a much higher increase than necessary to try to blame Holyrood.
“Fifers will suffer as a result. And make no mistake, so will the political parties that vote for this.”
Mr Alexander claimed Labour were relaying “their annual message of doom”.
And he added: “We are reaching the comedy gold stage of witnessing a series of Labour statements with no validity whatsoever.”
The SNP said a 3% rise would equate to a £38 a year increase for people in band D properties and would bring in an extra £5.4m.
He proposed using the council’s entire reserve budget to make up the shortfall.
“This would allow us to invest £3.9m in services,” Mr Alexander said.
“This is more than Labour’s £3.5m.”
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