East Renfrewshire plans tax hike to address £15m budget gap

Council leader Owen O’Donnell said the shortfall will result in council tax increases and service cuts to balance the books as well as using money from its reserves.

The council could also increase the cost of services it charges for.

He said that East Renfrewshire is a financially well-run council and one of the best performing in Scotland.

Council Leader Owen O’Donnell (Image: Mark F Gibson) However, years of real-term cuts in funding from the Scottish Government have left the council with difficult decisions.

He said: "All the indications are that our funding settlement from the Scottish Government is going to be extremely challenging.

"We’ll find out in December but are planning now for a flat cash settlement and our estimated budget gap of £15m is based on that.

"If our settlement from the Scottish Government is worse than this then that will mean an even bigger budget gap for us to close."

Mr O’Donnell said that a council tax increase, higher than normal, is highly likely to protect services, on the back of the freeze this year.

However, council tax alone accounts for about 17 per cent of funding, so cuts to services and drawing down reserves will also be necessary.

The East Renfrewshire Health and Social Care Partnership (HSCP), jointly funded by the council and NHS Greater Glasgow and Clyde, is also facing budget challenges.

The HSCP needs to achieve savings of £11.8 million in the current financial year and anticipates further cost pressures of up to £7 million for 2025/26.

Mr O’Donnell said: "The HSCP is facing a perfect storm of increasing demand for vital services as our population ages and big rises in prescription costs.

"The financial challenges faced by the HSCP are significant and involve incredibly important services for some of the most vulnerable people in our communities."

Despite these challenges, he assures that standards of service will be maintained at the highest possible levels.

He said: “We are determined to navigate the tough choices we have to make. The council has set up a cross-party Budget Strategy Group to support transparency and build a consensus.

“This collegiate approach has worked well over the last two years and I am sure that will continue.”