Council tax is set to increase by a “higher than normal” amount, garden waste collection charges are likely to rise and school support staff could be axed as East Renfrewshire Council faces an £18 million black hole.
Councillors meet tomorrow (Wednesday) to set a budget for the coming year and council officers have laid out how the gap could be filled — with savings up to £4.7 million on the table.
Political parties are expected to present their own plans to deal with the shortfall, taking some of the options from the “basket of savings” as well as setting council tax and using reserves.
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Cuts could include slashing the number of behaviour support assistants in secondary schools — removing 11 full-time equivalent (FTE) roles — to save £166,000.
Another move would see the reduction of staff (14.1 FTE), other than teachers and support assistants, in early learning centres and schools to save £211,000.
Increasing the garden waste collection fee to £60 was estimated to bring in £460,000 for the council, however the new charge is now proposed to be set at £50.
Cuts to winter maintenance and roads management budgets have been put forward, which would save £425,000.
Councillors will set out whether their budget amendments would include compulsory job losses. Council chief executive Lorraine McMillan said officers “always do everything we can” to manage vacancies through voluntary redundancies.
A large chunk of the budget gap is set to be covered by plans to “remortgage” PFI payments — deals which saw private sector investment in public infrastructure projects, such as schools and roads.
Officers have used a five per cent council tax rise in their proposals, which would see a Band D household pay £1,401.87 in 2023 to 2024.
Council leader Owen O’Donnell believes his minority administration, made up of the Labour group and independent councillor Danny Devlin, can get “sufficient votes” to pass its budget.
It could need support from opposition councillors, with the Conservatives previously backing Labour proposals.
Councillor O’Donnell confirmed his group’s proposed council tax rise “won’t be double figures”. He said the budget was about “supporting those most in need despite the significant financial challenges the council has faced.”
Councils are dealing with “spiralling inflation and soaring energy costs,” he said, and the Scottish Government funding received so far has been inadequate.
He warned there is a “real challenge” coming in future years, with “even bigger cuts” needed if more money isn’t provided.
East Renfrewshire will receive a settlement worth £223.1 millioin for 2023 to 2024, which, Councillor O’Donnell said, is only £800,000 more than the prior year on “a like-for-like basis.”
Council tax — which makes up 18 per centof the council’s budget — is “likely to be higher than people have seen historically, ”Councillor O’Donnell said.
He added officers’ five per cent proposal would be “significantly higher than what we’ve had before.”
However, he said: “If you look at what’s happening in the rest of Scotland, five per cent is below average.
“I think currently it is about 5.3 per cent, but we’ve had Orkney coming in at 10 per cent. Council tax will be higher than normal but it is unlikely to be higher than the average in Scotland this year.”
He said the reprofiling of PFI debt was “one of the good pieces of news we've had this year.”
He said: “Those PFI deals were typically over 25 years, those schools last 50 to 60 years so the government has allowed us to spread the cost of that now over the 50 years.”
The council will get a “one-off benefit of £14.8 million of new reserves” and an “ongoing benefit of £2.7 million for the foreseeable future.”
Councillor O’Donnell described the plan, which could be thought of “in terms of a remortgage”, as “prudent.”
Other cuts could see funding for school campus police officers pulled, reductions in janitorial, catering and cleaning services and less money for street light replacements. New electric vehicle charging fees will bring in £52,000.
Savings identified for future years, which could be approved, include slashing the number of school crossing patrollers and closing supported accommodation for young people at Connor Road.
Ms McMillan said: “We are not saying these are easy cuts, they are not. We do realise all the cuts will affect our residents. What we’ve tried to do in the first year is have the ones with the least impact.
“That will be for the politicians to decide what they think. It's a very difficult decision.”
Councillor O’Donnell said the council is “determined to continue to plan for a better future.”
“We will be continuing to invest in schools,” he added, revealing capital plans include increasing the size of Isobel Mair School and opening the new Neilston learning campus later this year.
He said investment would continue in council housing and a £3 million per year roads resurfacing programme, which finishes in 2023 to 2024, will be extended for another five years and lifted to £3.5 million.
Ms McMillan added proposed cuts to road maintenance would be “offset” by investment in resurfacing if “the capital plan is approved.”
Councillor O’Donnell criticised the Scottish Government for providing ringfenced money for policy commitments.
A “lack of freedom for local politicians really restricts our choices”, he said, leading to a “disproportionate amount of cuts” in areas that aren’t ringfenced, such as roads, parks and refuse collection.
The council held its “biggest ever” consultation and the council leader said the 1700 responses had been “really insightful.”
It is the first time residents have “actually said they were prepared to pay a bit more in council tax” to protect “vital services”, he added.
East Renfrewshire’s Integration Joint Board, a partnership between the NHS and the council which runs health and social care, also faces a budget gap, which could be as high as £10 million. Members will meet on March 29 to decide how to deal with that shortfall.
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