People across Renfrewshire are braced for a three per cent hike in council tax, a source has told the Local Democracy Reporting Service (LDRS).
The anticipated increase is set to be discussed by councillors tomorrow morning when the SNP administration puts forward its budget proposals.
Earlier this week, it emerged the council is facing a black hole of between £25million and £58m over the coming years due to "permanent cost impacts" from the Coronavirus pandemic.
In a gloomy forecast, officers warned the local authority is facing "hugely challenging" financial circumstances following the outbreak.
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Council umbrella group COSLA had already warned large tax rises were likely after leaders across the country criticised a £371m real terms funding cut in the Scottish Government's draft budget.
Most Scottish councils have already imposed a hike and Renfrewshire now looks highly likely to follow suit.
A three per cent rise would be mean the Band D tax would go up from £1,315.42 to £1,354.88 per year.
However, many people will be able to breathe a small sigh of relief as a £150 rebate from the Scottish Government for those in bands A to D or in receipt of council tax reduction will soften the blow.
The rebate has been brought in to help people deal with an upcoming rise in energy costs.
But given council tax bandings are not an accurate indication of a household's wealth, scores of families are still likely to feel the pinch amid a cost-of-living crisis.
Independent councillor Andy Doig said he is fully expecting a hike in council tax but insisted it is high time for an overhaul in the way local government is funded.
He said: "I think it'll be made clear at the meeting that if we stay where we are we will just break even and there would be no investment in services so I am expecting a rise.
"It just outlines the complete inadequacy of the council tax though and the whole system of funding local government has to be changed.
"It is total nonsense we can only raise 20 per cent of our income with 80 per cent coming from Holyrood.
"However, as long as we have the council tax I believe it should be used reasonably and wisely but, in the long term, I would favour a land value tax to fund local services."
When approached by the LDRS, the SNP administration refused to confirm any details of their proposed spending plans in advance of the meeting.
Factoring in an assumed council tax jump of three per cent in each of the next three years will only help reduce the council's deficit range to between £18m and £50m, finance chief Alistair MacArthur estimated in a report.
Scottish Government revenue grant funding to the authority in 2022/23 is £365.154m, with additional allocations earmarked for Holyrood priorities.
Conservative group leader Neill Graham added: “Once again Renfrewshire councillors are facing hugely difficult budget decisions.
"The SNP administration have failed to stand up to their bosses in Edinburgh and secure a fair funding deal for our communities.
“As we recover from the pandemic, we cannot be making more damaging cuts to our crucial day-to-day services.
“This budget will show voters in Renfrewshire will have a clear choice in May’s elections. A fair funding deal and rebuilding our public services with the Scottish Conservatives, or yet more deeply damaging cuts passed onto councils under the SNP.”
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