A three per cent rise in council tax has been approved by North Ayrshire councillors who will attempt to reduce residents' rocketing energy bills.
While rates have increased, for the second year in a row, the local authority will freeze fees and charges.
As part of its £365.3 million budget, the council approved plans to invest over £1.7m to work with a specialist partner to provide vital support to help residents access vital grants and receive money-saving energy advice.
It is hoped that this support scheme will help ease the squeeze on household incomes and offer folk the chance to adopt energy-saving measures such as boiler replacement and insulation to reduce bills.
North Ayrshire Council leader Joe Cullinane said: “Having supported people through two years of the pandemic, we all now face a serious cost-of-living crisis as energy bills soar.
“We have recognised that energy prices, which are rising by an average of 54 per cent, are fuelling the cost-of-living crisis.
"We believe that targeting the £1.725m of council funding, which is almost the equivalent of a three per cent council tax increase, to reduce the energy bills of those families most in need provides more short, medium and long-term benefits than freezing the council tax.
“We will accelerate this project at pace to ensure people feel the benefits as soon as possible. However, this is not a one-off scheme – we hope that the initiative will help ease financial pressures on our residents for years to come.”
The budget will create almost 100 full-time equivalent posts – largely in the health and social care and education sectors.
There is also a focus on the ambition of meeting net-zero carbon emissions. Additional resources will be ploughed into the council’s investment fund to support projects such as:
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An i3 solar and wind technology business case development to maximise the renewable energy potential at this strategic site
Expansion of EV charging infrastructure across new locations and aligned to the council’s EV charging strategy 2021-25
Deliver a battery storage pilot to test current available technology and to learn key lessons to benefit future renewable developments
The administration says that, with the Scottish Government rebate, around 55,000 households in North Ayrshire will see council tax bills reduce by between £110 and £123 in 2022/23; even with a three per cent increase.
Councillor Cullinane added: “While no one wants to see the council tax rise, the impact of not increasing it would have serious financial repercussions in the years ahead, leaving our residents facing the prospect of a 6.75 per cent rise next year and putting jobs and services at risk.”
For 2022/23, the council received a £2.72m increase in core grant funding from the Scottish Government when compared to last year, which is worth about 0.9 per cent.
However, the increasing demand for services and rising costs means cuts were still required to bridge a funding gap of £4.5m. The bulk of these were approved in previous budgets and are aimed at having minimal impact on frontline services.
Over the past 12 years, North Ayrshire has had to cut more than £118m from its budget and it is anticipated that financial challenges will be faced in the coming years with indicative funding gaps of £10.729m and £8.785m for 2023/24 and 2024/25 respectively.
Meanwhile, councillors also approved a £410m capital spending budget which aims to invest in the region's infrastructure over much of the next decade.
Projects approved include a £26m flood prevention scheme in Millport; £6.724m to be utilised as part of the £12m Solar PV scheme and £17.7m to create a centre for low carbon and circular economy at Hunterston as part of the Ayrshire Growth Deal.
Councillor Cullinane added: "Our capital budget gives us a chance to invest in significant infrastructure projects.
“These projects will be more vital than ever as we emerge from the Covid-19 pandemic and use our investment to help support the local economy and residents."
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