23 February 2007
A council heavily criticised in a watchdog report has become the first in Scotland to cut its council tax since local government was reorganised in 1996.
Inverclyde Council has cut the average council tax for 2007/08 by 0.65%. The new average Band D figure is now £1,198, a reduction of £8 on the tax for 2006/07.
The move comes after an Audit Scotland report last year slammed the Liberal Democrat-led authority for fundamental management weaknesses and lack of effective leadership and direction.
A 'hit squad' was sent in and the then chief executive resigned. The council's LibDem leader, Alan Blair, one of those criticised by the spending watchdog, described the council tax decision as 'a very important day for Inverclyde' and one that demonstrated sound financial management.
He added: 'This is a sustainable and responsible budget that does not rely on us dipping into our reserves but ensures long-term improvement.'
Blair disclosed that the council was also freezing council house rents.
In a progress report on Inverclyde published this week, Audit Scotland said the authority was moving in the right direction, having established a new management structure and political management arrangements and improved member-officer relations.
Dundee City Council this week became the second Scottish local authority to freeze its council tax. The council agreed that its Band D charge should remain at the 2006/07 figure of £1,211. Glasgow City, Scotland's biggest council, had already decided to freeze its charge for the second successive year.
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