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West Dunbartonshire Council Warns of Bankruptcy Amid 7.8% Tax Hike

West Dunbartonshire Council warns of potential bankruptcy amid a 7.8% tax rise and £9.2m deficit. South Ayrshire also approves an 8% tax increase to address funding gaps for 2026–27.

·3 min read
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West Dunbartonshire Council Faces Financial Crisis

The leader of West Dunbartonshire Council has warned that the local authority could face bankruptcy within several years following the confirmation of a 7.8% council tax increase for the area.

Martin Rooney called on political parties and independent elected members to collaborate in addressing a £9.2 million deficit confronting the council.

According to Rooney, the council's options to generate revenue are limited to raising council tax, increasing sales fees and taxes, utilizing reserves, implementing management adjustments, and making savings.

Tax Increases Across Councils

South Ayrshire Council has also approved a council tax rise, agreeing to an 8% increase. Meanwhile, Inverclyde and East Dunbartonshire Councils are scheduled to meet later to decide their respective budgets.

Budget Approval in West Dunbartonshire

In West Dunbartonshire, the Labour budget proposal was approved over the SNP's alternative, which had suggested a 10.4% council tax increase.

The approved budget incorporates more than £1.4 million in savings measures and additional management adjustments amounting to £705,000, alongside the council tax rise.

Rooney emphasized the necessity of cooperation to prevent bankruptcy.

"It will go bankrupt in the next administration and I am talking about 2027 to 2032,"

"That administration will not survive in the way that we do politics in West Dunbartonshire – throwing bricks at each other and trying to outdo each other or whatever it might be.

"People talk about cross-party working, maybe they want to start engaging with it rather than just saying it."

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He further noted that discussing financial challenges openly could lead to better solutions, though he acknowledged that many councils have revenue-raising options unavailable to West Dunbartonshire.

South Ayrshire Council Budget Decisions

In South Ayrshire, councillors approved an 8% council tax increase aimed at addressing an £8.463 million funding gap for the 2026–27 fiscal year.

Three proposals from the SNP, Labour, and the Conservative minority administration were debated, with the Conservative plan ultimately approved. The council estimates this will generate approximately £5.96 million.

The plan includes £2.728 million in savings, £1.59 million in additional funding for the Health and Social Care Partnership (HSCP), and a £1.365 million use of uncommitted reserves to bridge the funding gap.

Specific cuts include £462,000 by reducing the registered capacity of early years centres, £368,000 in education absence cover budget reductions, and £267,000 in savings through ICT and corporate service redesign.

Additional reductions will affect street cleaning services and business support programmes.

Smaller savings measures involve removing £10,000 in funding for antisocial behaviour mediation and reducing community and problem-solving budgets.

Council leader Brian Connolly stated that the approved budget avoids closures of libraries, community facilities, and halls, while maintaining school crossing patrols and senior golf concessions.

"It will go bankrupt in the next administration and I am talking about 2027 to 2032,"

He cautioned that significant financial pressures remain for future years, with the council's medium-term financial plan still indicating a funding gap for 2027–28.

This article was sourced from bbc

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