It was a big day at Fife House in Glenrothes as the full council met to debate the budget for the year ahead.

The Labour administration was supported by Lib Dem and Conservative colleagues to approve plans for 2025/26, which include:

• 6% rent increase for Council tenants
• 8.2% increase in Council Tax levels

Overall, the Council’s budgets are expected to increase thanks to refreshed spending plans by the UK Chancellor, Rachel Reeves, increasing the block grant to Holyrood, as well as budget plans from SNP’s Finance Secretary, Shona Robison. Around £927m across all Council services is expected to flow into Fife when the Scottish Government’s budget is agreed next month.

Some of the highlights from today’s Fife Council budget agreement included:

• £12.6m in the coming year for new devices (such as iPads) for school pupils
• Additional £3.5m for fixing potholes
• £91m for new “affordable” housing
• £4.8m to buy houses from the open market to meet demand in Fife
• £60m for the maintenance of Council housing
• 3% pay rise for Council workers
• 0.5% savings from reduction in management, reducing absence rates and other efficiencies totalling £4m
• 5% increase in fees and charges for services
• £12.5m investment in new Council vehicles over the next 3 years
• £13.1m set aside for a possible new swimming pool facility in West Fife, following the closing of pools at Woodmill and Inverkeithing High Schools

The council rejected proposals to introduce parking charges in Cowdenbeath, so parking will remain free here and in the Leven and Cupar areas.

58% of Council tenants who took part in a survey about the proposed rent increase voted for a 5% increase (from the limited choices of 5%, 6% or 7%), but the Council have chosen to move forward with a 6% hike instead, which they say will help build new housing desperately needed across Fife.

Part of the pressure on Council funding has been a hike in employer’s National Insurance contributions coming in from April. Funding to offset this hike was received from Westminster, but at just 60% of the estimate total needed, leaving Councils and the Scottish Government to find the remaining NI contributions elsewhere.

Labour also proposed to save £1.4m by cutting services and grants delivered by charities and good causes in the Kingdom over the next 3 years, which will bring some anxiety to charities already struggling with the upcoming National Insurance increase.

The SNP’s motion to amend the budget, including a lower Council Tax rise, were voted down after a vote by all councillors.

Council Leader David Ross explains: “We have to strike a balance between making savings, raising council tax and continuing essential investment in our services for local people.

“Fife’s health and social care partnership is facing huge financial challenges and urgent investment is needed alongside our partners NHS Fife. We have to make sure that those in most need have the right care and support.

“We are also continuing to invest in maintaining and improving Fife’s roads. An additional £9m will be invested over the next three years.

“The challenging financial landscape and the fact that we had to freeze council tax last year meant, this year, we were considering council tax increases of almost 10%. However, recognising the impact this would have on Fifers, with some careful financial management we have brought this down to 8.2% for this financial year with potential rises of 5% for the next two years.”

The new Council Tax bands for 2025/26 will therefore be:

Bands & New Values

Band A £999.17

Band B £1,165.70

Band C £1,332.23

Band D £1,498.76

Band E £1,969.20

Band F £2,435.49

Band G £2,935.07

Band H £3,671.96

You can read the full set of budget plans and amendments on the Council’s website here.