Councillors will meet on Wednesday, 1 March to set the Council's budget for 2023/24 – including a proposed 7% increase in Council Tax for the coming year.
The Council is facing the biggest financial challenge in its history, compounded by a range of factors including increases in inflation, affecting utilities, fuel and materials, and an increase in interest rates. As a result, balancing the budget, as we are legally required to do, will not be an easy task.
On budget day, the Council will set two budgets – Revenue and Capital.
Revenue budget
It is predicted that the Council would spend £25.9m more than it receives next year if nothing changed. To help councillors close its budget gap, officers have presented a range of ways to reduce costs and generate additional income.
These include Councillors considering the administration's proposal to increase Council Tax by 7%.
Last year, Falkirk’s Council Tax was the 5th lowest in mainland Scotland, and £72 less than the Scottish average.
If Councillors agree a 7% rise, a Band 'D’ household would pay an annual Council Tax of £1,363.82, which is equivalent to a weekly increase of £1.72 per household.
Councillors will also consider the administration proposal to spend some of the Council reserves – effectively the money saved during the current financial year – on a range of proposals including:
- £1m on a Regeneration Fund to support infrastructure improvements in Falkirk Council’s five town centres and two pilot villages of Bonnybridge and Slamannan.
- £500k towards the successful Community Choices programme to ensure it continues for another year.
- £250k for the Household Support Fund to provide vital cash over the winter of 2023/24 to support 1,300 low-income households access food, fuel and other essentials.
- £250k for Climate Change to investigate sustainable energy solutions for the Council such as solar, wind farm or heat network opportunities.
Capital investment
The budget proposals also include our approach to investment and how we intend to invest £36.2m in 2023/24 across priority areas through our Capital programme.
Most Capital projects - which are funded through a mix of borrowing, Scottish Government grants, receipts from property sales and other funding - will run over several years and will require further investment before completion.
Key areas of Capital investment for 2023/24 include:
- £2.6m in specific school improvements and extensions, with a further £1.5m across all other schools
- £3.9m on roads structural maintenance
- £3.1m Grangemouth flood defence scheme
- £1.6m for digital learning
- £1.2m participatory budgeting through Community Choices
- £1m for work starting on a new Falkirk Town Hall
- £0.7m for cycling, walking and safer routes
- £0.5m Changing place facilities
- £0.4m CCTV improvements
- £0.3m in Grangemouth Sports Complex
No decisions will be taken on the budget until 1 March. You can watch the budget meeting live on YouTube from 10am on that day.