With both the SNP and Labour groups at Inverclyde Council publishing their budget proposals yesterday, Greenock and Inverclyde MSP Stuart McMillan is accusing Labour of playing games with people’s finances during a cost of living crisis.
The local Labour group, led by Cllr Stephen McCabe and backed up by Westminster candidate Cllr Martin McCluskey, have announced their proposal to increase council tax by 8.2% this year and a further 6% next year.
The SNP’s proposal is to accept the Scottish Government’s extra funding and implement a council tax freeze.
The local SNP MSP wrote to the Finance Secretary, Shona Robison MSP, to ask for her assessment of the impact that implementing a council tax freeze would have upon Inverclyde Council’s funding settlement, compared with introducing an 8.2% council tax increase in 2024/25.
In her response, the Finance Secretary indicated that Inverclyde’s share of additional money ‘would be around £2.9m’ if they implement the council tax freeze – which when compared with an 8.2% increase in council tax, is projected to raise an additional £2.87m.
The Finance Secretary went on to say: ‘As such it is clear that Inverclyde Council are being offered funding for a council tax freeze that is approximate equivalent value to the 8.2% council tax increase that has been proposed by the Labour group’.
Commenting, Stuart said:
“Cllrs McCabe, McCluskey and their Labour colleagues will clearly do anything for point scoring and this latest stunt is the worst yet.
“Increasing council tax by over 14% over the next two years just so they can say they stood up to the Scottish Government is treating the people of Inverclyde with contempt.
“The SNP group has proposed a one-year budget accepting the extra money from the Scottish Government, which would see council tax in Inverclyde frozen next year.
“The Scottish Government had already committed to fully fund a council tax freeze across Scotland and when we include the most recently announced extra funding for local government, the Scottish Government is providing an additional £210m next year.
“Make no mistake, the additional money from the Scottish Government means Inverclyde Council does not need to increase the council tax – as it is equivalent to the amount of funds an 8.2% increase would provide.
“The Finance Secretary has also confirmed in her reply to me that the additional money is baselined, meaning it is guaranteed for next year. Therefore, not accepting the additional money means Inverclyde will lose out next year too.
“Cllr McCluskey was in the Tele earlier this week cosying up to Sir Keir Starmer, stating he raised the issue of the cost-of-living crisis with him – yet tomorrow, he is going to vote to raise council tax by 8.2%.
“If I had the chance to speak with Sir Keir, I’d have asked him for a commitment that he is going to increase the block grant Scotland receives if he becomes the Prime Minister later this year. This is something, worryingly, that Scottish Labour seem to be shying away from.
“The very fact Labour locally are proposing a two-year budget suggests they don’t have faith in Scotland’s funding position improving after their bosses, as they expect, form the next UK Government.
“As usual, their involuntary reaction of shouting ‘cuts, cuts, cuts’ takes precedence over actually doing anything, including producing any constructive suggestions.
“If local government is to get even more money, where does it come from? We’ll be waiting a while for anyone from within Scottish Labour to provide an answer. Cllr McCabe previously told me that wasn’t his job.
“I sincerely hope local councillors will take this new information into account before voting on the budget proposals tomorrow.”
