The investment, which will include new build housing, also saw councillors agree a rent increase of 3.5 per cent for 2016/17. The average weekly rent based on 52 weeks will be £70.01.

The council’s overall revenue budget was set at £112.684m with savings approved totalling £7.805m. Councillors heard that there is a cumulative funding gap of £17.988m to 2019/20 and that council tax is to be frozen for the ninth year, maintaining bills at 2007/08 levels.

As a result, the Employment Fund has been increased to £4.7m in order to finance the voluntary release of staff. A report on the uptake of targeted voluntary redundancy will be brought back to the council once the indicative uptake has been confirmed. The saving agreed will result in a reduction of 106.58 full time equivalent posts (FTEs), of which 25.9FTEs are currently vacant.

Council leader Les Sharp said: “There is no doubt that the budget setting process has been extremely challenging this year. This budget has a strong focus on change and allows us to take further significant steps to Make Clackmannanshire Better and ensuring that the council has a sustainable future to allow us to deliver essential services. We have set out Phase 1 of the implementation of the Cluster Model, and continued the process of streamlining service delivery and takes action to address the managed contraction in staffing. We have also retained the council’s reserves above the minimum level.”

On the investment in housing, Councillor Sharp added: “We continue to maintain reasonable rents in Clackmannanshire, at the same time as delivering very good quality housing stock. Excellent progress has been made in delivering the Scottish Housing Quality Standard, and the local Clackmannanshire Standard is now complete. The agreed budget also allows the council to make capital investment, including new build housing and home energy improvement projects.”