Budget brings huge investment despite lowest Council Tax
Published: Wednesday 26 February 2025
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A £55 million investment boost has been agreed for South Lanarkshire, with projects set to benefit communities across the area.
New funding will improve buildings and roads, and help pay for landmark projects in East Kilbride, Hamilton, Larkhall, Lanark and elsewhere. It will also be used to reduce waste and tackle fly-tipping.
The extensive and exciting range of investment projects was agreed today by South Lanarkshire Council.
And the investment programme will be delivered despite Council Tax rates in the area now expected to be the lowest in all 32 local authority areas in Scotland.
Council Leader Joe Fagan said: “Our area’s prospects look better than they have for some time and there are three main reasons for this.
“First, we are now operating in a different environment, with a UK government that is looking to invest rather than impose austerity. One result of that is that the financial package that councils have received, though the Scottish Government’s block grant, is the best it has been in years.
“Secondly, the council is run very prudently. By seeking efficiencies wherever we can, and by employing an intelligent approach to debt and other factors, we have drastically reduced our budget gap.
“And thirdly, South Lanarkshire councillors have agreed to ringfence part of this year’s Council Tax increase to invest in our communities.
“That money will be well-spent and will fund improvements across South Lanarkshire. Our residents will see the results – better roads, better buildings, better services. More help for those who need it most.
“It’s a budget designed to ensure South Lanarkshire remains the best place to live in, visit, and invest in in Scotland.”
The increase in South Lanarkshire’s Council Tax has been limited to 6%, which is significantly lower than other parts of the country. It also means the area’s Band D rate is now predicted to be lower than that in all other council areas.
The investment programme will include:
- £24 million to implement an estates review to improve community access to facilities and service delivery, and to work towards net zero.
- An additional £12m over three years to keep local roads among the best in Scotland
- £8m funding to start transforming Hamilton town centre – following ambitious plans already agreed and funded for East Kilbride
- Another £3.85m to deliver the bigger Leisure Centre wanted by people in Larkhall
- £2m investment in local transport, including the Lanark public transport interchange
- Funding to restore the Overtoun Bandstand which was destroyed in a fire.
- £1.35m to take forward masterplans for Calderglen and Chatelherault country parks
- More cash to keep streets and green areas tidy and clean, including targeting fly-tipping
- And Council agreed to increase by £20 the school clothing grant for those entitled to it.
Before today’s budget decisions, the council faced a £37.584m budget gap over three years. Thanks to today’s decisions, that gap is reduced to £25.5m.
Councillors also heard that ringfencing 1.2% of the Council Tax rise would allow the council to borrow to invest, while also making savings to balance the budget for this year.
Eight savings options worth £6.485m that had been put forward by officers were approved. But Council rejected more than twice as many other saving options, including proposals to reduce grass-cutting and weedkilling, and to reduce the number of instructors employed by the Instrumental Music Service.
In addition to approving plans for its revenue budget of more than £1 billion for 2025-26, the meeting of the Council also approved a £60.216m capital programme.
Council Leader Joe Fagan has recorded a short video message highlighing the 2025/26 budget priorities, which is available on the council's YouTube channel.
The approved Administration amendment, put forward by Councillor Fagan, Labour Group Leader, and seconded by Councillor Robert Brown, Liberal Democrat Group Leader, can be found on the council's website (at the bottom of the web page).
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