INVERCLYDE Council has published its draft budget and Council Tax plans for 2026/28, with increases in Council Tax and charges proposed, plus the loss of 26 jobs.
Proposals will go before a special full council meeting on Thursday to agree spending plans and seek approval to potentially raise Council Tax by 7.9 per cent in each of the next two years to help address a funding gap of more than £8 million.
The Council Tax increase would mean an extra £122.55 per year — or £2.36 per week — for the average Band D household. Most Inverclyde properties are in Bands A to C which would amount to an increase of between £81.70 and £108.94 annually, equivalent of between £1.57 and £2.10 per week.
Approximately 9,000 — 24 per cent — of households are protected from any Council Tax increase because they are entitled to a reduction while a further 1,600 properties receive full exemption.
If agreed at next week’s meeting, fees and charges would also increase by 7.5 per cent in 26/27 and 27/28.
The revenue budget proposals, which also include the use of reserves, would avoid the worst of the proposed cuts that were included in a recent public consultation. This follows feedback from residents, staff, and other stakeholders about what their key spending priorities are.
Facilities including Port Glasgow Library, Port Glasgow Swimming Pool, and Greenock Central Library would remain open, and services such as active schools, community wardens and events, would all continue if the budget plans are approved.
The spending proposals also include an additional £500,000 allocated towards investment in roads and £300,000 for additional support needs (ASN) provision.
There would, however, be 26 full-time equivalent (FTE) jobs lost across a variety of council services through non-replacement of vacant posts, early release, and service redesigns.
The revenue budget and Council Tax plans have been developed by the council’s members’ budget working group (MBWG), which is made up of representatives from all parties and some independents. There has also been engagement with trade unions.
The revenue budget deals with day-to-day spending, such as wages, costs and utilities.
Councillors will also be asked to agree a separate three-year capital budget of around £87million, which covers one-off projects and infrastructure costs and includes: £2million for the regeneration of Port Glasgow Town Centre; more than £10million for road improvements; completion of the new £10million adult learning disability hub in Greenock; more than £8million for maintaining the schools estate; £11million for new commercial properties to attract and retain jobs; and nearly £18million for the redevelopment of Central Greenock.
Councillor Stephen McCabe, leader of Inverclyde Council, said: “We have listened to feedback from residents, staff and partner organisations during the recent public consultation and taken those into account when developing the budget.
“If approved by councillors at the special council meeting on 5 March, these budget proposals would avoid the worst of the savings options that were put forward. In order to do that and to fulfil our obligation to deliver a balanced budget, we will have to raise Council Tax and increase fees and charges.
“It becomes more difficult each year for councils to cope with increasing demand for services without fairer and more sustainable funding from the Scottish Government. It means we are left with no option but to consider difficult decisions.”
Councillors will be asked to approve a £280.5million revenue budget, and a Council Tax increase of 7.9 per cent for 2026/27. They will also be asked to consider a further indicative Council Tax increase of 7.9 per cent and a revenue budget of £284.75million for 2027/28.
The tax increases plus use of council reserves would help plug the £8.2million funding gap facing the council over the next two years. Since 2008, the council has made £77million of budget savings.
Council Tax makes up 14 per cent of the council’s revenue budget and helps pay for services such as education, social care, libraries, roads, and waste and recycling.
The 7.9 per cent Council Tax increase for 2026/27 would raise an additional £3million with a further £3.24million from a potential 7.9 percent increase in 2027/28.
Of the £5.35million worth of saving proposals included in the public consultation, 14 options would be taken with a total saving of £1.575million over the years 2026/28. This includes the proposed increase of 7.5 per cent in 2026/27 and 2027/2028 for council fees and charges.
The savings that would be taken are:
— Economic Development staffing reduction
— Planning staffing reduction and revised structure
— Property Management staffing reduction
— Cessation of Home Link Workers service
— Closure of Greenock i-Youth Zone building
— Education Business Support staffing reduction
—Music Services staffing reduction
— Reduction in cleaning provision in office buildings
— Reduction in cleaning provision in Early Years’ establishments
— Increase in non-statutory fees and charges
— Finance staffing reduction
— Senior management revised structure
— Information and Communication Technology staffing reduction
— Chief Executive Services staffing reduction
