A COUNCIL tax increase of five per cent is being suggested by authority officers in Argyll and Bute as part of the budget for 2025/26.

But the increase could yet rise to seven per cent, while fees and charges for council services could go up by as much as nine per cent.

Even after measures to balance the budget have been built in, the council predicts a budget gap of more than £9 million in the next financial year.

No possible savings options for the year have yet been published by council officers. The authority will set its budget for 2025/26 in February.

The details are given in a report which will go before the council’s policy and resources committee at its meeting on Thursday, October 10.

Executive director Kirsty Flanagan said: “In 2024/25 a general inflationary increase of six per cent was applied to fees and charges. For the budget outlook a range of between three per cent (worst case) and nine per cent (best case) with a mid-range of six per cent has been included.

“There is no general inflationary increase of six per cent applied to piers and harbours to ensure that any income generated is not in excess of expenditure.

“Some of the policy options were agreed at the council meeting on February 22, 2024 that impacted on 2025/26 and beyond. These are now factored into the budget outlook, reducing the budget gap.

“In terms of council tax, a five per cent increase had been assumed in the mid and worst case scenarios and a seven per cent increase in the best case scenario for 2025/26 on the basis that the majority of councils increased their council tax by at least five per cent in 2023/24 prior to the freeze in 2024/25.

“From 2026/27 a five per cent increase has been assumed in all scenarios. In light of the significant budget gap, this is an area that members will require to give due consideration to as part of the budget setting for 2025/26 and beyond.”

A table published in the same section of the report shows that after measures to balance the budget have been implemented, a projected gap of £9.147m remains.

Ms Flanagan concluded: “This is a very challenging budget outlook position and the level of Scottish Government grant and the pay award are two assumptions that could alter the figures significantly.

“These will be kept under close review and the budget outlook updated as and when further information becomes available.”