Perth and Kinross opposition councillors warned of more cuts this week as the Scottish Government announced the local authority is to receive £364.2 million in funding this year.
Councillors will meet on Wednesday, February 26, to set the local authority’s 2025/26 budget with the total £364.2m revenue contribution from the Scottish Government comprising £344.8 million, capital grants of £1.6 million and a net contribution from reserves of £13.8 million.
Last year the PKC revenue grant from the Scottish Government was £337.7m.
In December PKC councillors voted to endorse three-year indicative Council Tax increases of 10 per cent in 2025/26, 10 per cent in 2026/27 and six per cent in 2027/28 “to end the annual cycle of death by a thousand cuts.”
A 10 per cent Council Tax increase would generate an additional £5.4m for 2025/26 according to the local authority figures.
But opposition councillors said this week the numbers did not add up when taking into account funding required to meet costs like National Insurance contributions and social care.
PKC Conservative group leader John Duff said: “The increased pressure from the National Insurance hike for the council alone amounts to £5.4million and that doesn’t include costs for our partner organisations such as Culture Perth and Kinross or Tayside Contracts. Nor does it include the inflationary cost of living increases on existing council services.
“So unless further significant funding is provided by the Scottish Government, it means more cuts to existing services throughout Perth and Kinross or massive Council Tax increases.”
PKC Liberal Democrat group leader councillor Peter Barrett said: “The Scottish Government has provided Perth and Kinross Council with absolutely nothing to support the increasing numbers of people who need social care; nothing to address the massive rise in the costs and complexity of care packages.
“In Perth and Kinross alone that comes to £6.7million. It is not just us, the Scottish Government are turning a deaf ear to the social care crisis faced by every council in Scotland. That cannot be ignored.”
Carse of Gowrie Labour councillor Alasdair Bailey said this week: “I’ll be spending the days between now and our budget carefully scrutinising the detail of this announcement and what it means for service delivery here in our area.
“Once again though the council faces having to work with only one year’s certainty on funding.”
Scottish Government finance secretary Shona Robison said: “More than £37 million will be invested in schools in Perth and Kinross.
“We will deliver funding for communities the length and breadth of Scotland, providing the public services that people deserve and need.
“I am urging parliament to work together to ensure the budget passes, which will provide hope for our economy and funding to better support local authorities.”
A PKC spokesperson said this week: “We look forward to receiving full details of the Scottish Government’s local government settlement.
“Councillors will set our budget when they meet on Wednesday, February 26.”