Council sets 2025-26 budget
£7.1m gap will be met by using cash from reserves, increasing Council Tax by 8% and £391K in savings
Published: 26 February 2025
The Council has set its budget for 2025-26.
Council Leader Owen O'Donnell outlined the spending plans for the year ahead at a meeting of the full council on Wednesday 26 February.
With a budget gap of £7.1m, the council has used a range of measures to meet this challenge, including using a small amount of reserves and implementing savings.
Council Tax will increase by 8% to support the council in balancing the books.
Councillor O'Donnell said: 'Following many years of extremely challenging financial pressures, there are cautious grounds for optimism in relation to the council's finances. There will still be significant challenges ahead and difficult decisions to make, but for the first time in my period as Council Leader, I can see a path to a more positive future allowing us to focus on delivering even better services to our residents. We still face significant financial challenges, but have been able to pull back from some of the more drastic savings options initially put forward as part of our three-year public engagement exercise. And through prudent and efficient management of our resources, we can continue to invest in our communities. As part of our extensive budget engagement, many of you told us you would be prepared to pay a little more in council tax to protect key services. Setting the Council Tax increase at 8% is higher than we would have liked, however, it is necessary to not only protect our excellent services but will allow further investment in education, care, roads, housing and leisure facilities.'
The grant settlement received from the Scottish Government was £271.3m, an increase of £14.7m on last year, which Councillor O'Donnell explained was the best funding settlement received for many years. However, much of this funding is ring-fenced and can only be spent on nationally-agreed initiatives and pay awards.
This settlement means the council has been able to protect teacher numbers and pass on an additional £1.6m to the East Renfrewshire Health and Social Care Partnership (HSCP) to support its crucial frontline work.
Councillor O'Donnell also outlined the significant capital projects which the Council continues to invest in, with work to create a new Balgray railway station set to get under way soon, ambitious plans for a new Eastwood Leisure Centre and Theatre progressing, and the Council's ongoing commitment to building more affordable housing.
The Labour/Independent administration's Budget was approved and will now be taken forward by the Council.
A separate proposal by the Integration Joint Board (IJB), which governs the HSCP, to introduce charges for non-residential care in East Renfrewshire has been delayed, and will come into effect from 1 April 2026. This will allow time for financial assessments to take place and for service users to be supported by the council to ensure they are receiving all the benefits which they are eligible for.
By April 2026, the council will also know if the Scottish Government intends to abolish these charges nationally. The IJB had proposed the introduction of charges for non-residential care due to significantly increased demands on its services leading to severe pressures on its budget.
Councillor O'Donnell said he would be writing to the First Minister to ask him if he is going to deliver on an SNP manifesto commitment to abolish such charges.
Councillor O'Donnell added: 'We remain committed to supporting the HSCP's vital work. Our total contribution to health and social care in the coming year will be £79.1m, more than a fifth of the council's total expenditure.'
Council Leader's speech
A transcript of the Leader's speech and the accompanying presentation slides are available below:
