COUNCIL tax in Inverclyde is set to rise for the first time in 10 years.

Local authority officials have recommended a maximum three per cent increase in the basic rate from April 1 — and the move is being backed by councillors.

The plans gained cross-party support from the members’ budget working group (MBWG) and is set for final approval at a full council meeting today.

The Scottish Government introduced a council tax freeze in 2007 and it remained in place until last year, when local authorities were given permission to raise it by Holyrood.

Inverclyde councillors agreed to maintain the freeze for 2017, but with budgets being squeezed and the council facing an estimated £8 million funding gap over the next two years, the levy is now expected to go up by the maximum amount of three per cent.

The move will raise an additional £860,000 over the next 12 months.

Officials say the idea has received support from residents during the recent public consultation about proposed council savings.

Alan Puckrin, the council’s chief financial officer, said: “The majority of respondents indicated that they view an increase in council tax as now being acceptable, given that it has not risen for some time, unlike other costs.

“Respondents also acknowledged that an increase in council tax could be used to protect service delivery.”

Following a vote by MSPs, there was an increase for the top four bands of council tax last year, meaning people living in more expensive properties were hit with a hike.

Inverclyde councillors agreed to maintain the basic rate at the 2007 level and take the freeze into a tenth year to prevent two tax rises for some residents.

A three per cent increase will mean people on Band A — properties valued up to £27,000 — paying just under £20 more per year — or 38p a week. At the other end of the scale, those in Band H — homes valued at £212,000 or more — will see an annual increase of £88, equivalent to £1.68 each week.

Local authority officials say two-thirds of residents who took part in the public consultation backed a council tax rise, with 44 per cent of those in favour of the full three per cent hike.
In his Tele column last week, council leader Stephen McCabe said: “No-one wants to pay more in tax.

“The stark fact however is that unless we do greater cuts will have to be made to our local services.”

Today's council meeting starts at 4pm in the Greenock Municipal Buildings and is open to the public.