Argyll and Bute Council will have to spend around £80,000 to reverse its 10 per cent hike in council tax, a Freedom of Information request has revealed.
Argyll and Bute and Labour-led Inverclyde were the only two of Scotland’s 32 local authorities to flout a 12-month council tax freeze announced by First Minister Humza Yousaf at the SNP conference last October. The Scottish Government said it would give councils £147m in compensation and a share of £62.7m if they implemented the policy.
In February Argyll and Bute Council’s ruling Argyll, Lomond and Islands Group (TALIG), made up of Conservative, Lib Dem and some independent councillors, voted to raise the charge by 10 per cent to help overcome "severe and on-going budget gaps".
Deputy leader Gary Mulvaney, Conservative councillor for Helensburgh Central, said the government funding settlement available to the council on the basis of a council tax freeze would still have meant cuts to services.
Then in a shock u-turn in March, as letters hit tax-payers’ doorsteps, the administration said it wanted to freeze council tax after talks with the Scottish Government secured additional funding of £6.26 million. A full council meeting has been scheduled for April 15, when councillors will decide whether to freeze council tax or not.
Lomond North Independent Councillor Mark Irvine, a member of the SNP-led Strategic Opposition Partnership, called it "a wholly unnecessary mess".
He said: "The simple reality is there was no more money put on the table by the Scottish Government and in the meantime many people have been worried sick about how they will make ends meet.
“Sadly it will now cost the council, and the taxpayer, tens of thousands of pounds in council officers’ time to unwind the decision and correct the billing system – as well as refund and rebate those residents who have already paid."
Now a Freedom of Information request to Argyll and Bute Council has disclosed how much the reversal is likely to cost the public purse. Data seen by The Oban Times asked for the cost of issuing the initial bills to Argyll and Bute residents for council tax in 2024/25, with the council admitting the spend is approximately £35,000.
Now the administration would like to reverse its decision, the enquiry asked how much it will cost to administer the necessary amendments and reissue the bills. The council said: "If the council does decide to freeze council tax, it will cost an estimated £78,000."
The overall cost for the initial print and follow-on billing would therefore be £113,000.
A spokesperson added: "It is because the council secured millions of pounds more for Argyll and Bute, from the Scottish Government, that freezing the council tax is now an option, while also protecting the council services that people depend on.
"This funding was only confirmed after the council had to set its budget and make decisions to save services. Now that the council has successfully secured the funding that Argyll and Bute needs, we will make all necessary arrangements to pass on the benefits to communities, if the freeze is agreed on 15 April.”
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