INVERCLYDE’S first council tax rise in a decade is only ‘the tip of the iceberg’ towards plugging an estimated £8 million budget gap.

Councillor Stephen McCabe has warned that the three per cent hike will only make a small dent in the huge financial deficit the local authority is facing over the next two years.

Elected members unanimously agreed this week to raise the base rate for the first time since 2007, which is expected to generate an additional £860,000 for council coffers.

Two-thirds of residents also backed an increase during the recent public consultation process.

The council leader described it as an ‘historic’ move but says there are still tough times ahead to try and balance the books.

Mr McCabe said: “This is the eleventh time as leader of the council I’ve moved a council tax resolution and historically this is the first time I’ve moved for an increase.

“Previously it’s been a decision of the Scottish Government and parliament.

“This is a unanimous recommendation by the cross-party members’ budget working group.

“Increasing council tax only raises a further £860,000, which is fairly insignificant in the grand scheme of things.

“We’re still left with a significant budget gap and in the coming weeks we will be sitting down and considering the results of the public consultation.”

The Scottish Government’s 10-year council tax freeze came to an end last year but Inverclyde councillors maintained it at 2007 levels for a further 12 months to avoid some 7,000 residents being hit with a double rise after ministers introduced an increase of between 7.5 and 22 per cent for people on higher bandings.

A three per cent hike across the board was unanimously approved at a meeting on Thursday.

Depute council leader Jim Clocherty said: “No-one likes to pay more taxes — we all recognise that — but we now have recognition from the budget group and members of the public that there is a need to raise council tax.

“It’s not a decision that we round these tables take lightly, however, it’s now time to protect local services and one way to do that is raising the council tax.”

The increase comes into effect on April 1 and will mean people paying between £20 and £88 more per year, which is equivalent to between 38p and £1.68 a week.