IN a meeting to approve the East Lothian Council budget for the next financial year, councillors will consider a 6.5% rent increase.
As the area is the second fastest growing area in Scotland, it is facing considerable demand from a growing population.
It is among many Scottish councils considering tax rises, as Shetland and Fife also suggest 10% increases.
This comes after the council approved a 7% rent increase for council tenants last year, though the majority of those consulted had said it would be easier to cope with a 5% increase.
East Lothian Council has also proposed a sum of £211m to be invested in infrastructure such as schools.
To account for an expected shortfall of £15.2m this year, the council is planning on reducing its spending by stopping certain services, and increasing council tax and other fees – despite measures being taken to freeze council tax last year.
Tomorrow, a budget meeting will be held to confirm the level of rent and service charge for council tenants.
Though a consultation on a 7% rent increase was undertaken, the council has submitted a proposal for a 6.5% increase, which amounts to an average of £5.25 per week.
They are also still planning to deliver an additional 774 new affordable homes by 2029-2030, a strategy introduced in 2022-23.
Despite being one of Scotland’s fastest growing areas, East Lothian reportedly receives the third lowest government grant per head of population.
This financial year, they are set to receive a possible £12.6m from the Scottish Government, which will be partially used to cover the cost of new policy commitments and costs within the council itself.
They state that “higher rent increases will provide greater headroom for borrowing whilst remaining within these parameters, and therefore increase capacity for capital investment to modernise the existing housing stock and increase the supply of affordable housing”.
The council plans to commit £1m for council home modernisation and an increase in roads and property renewal budgets of £1m each.
