Councillor Judy Hamilton

The same increase will apply to service charges, garages, lockups, and temporary accommodation.

Councillor Judy Hamilton said the council has carefully considered the impact of rising costs of living, both on households across Fife and on the Housing Service’s ability to provide warm, safe housing across the Kingdom.

“We can control our own income from housing, and we work with our tenants and their representatives before taking decisions,” she said: “I know the idea of any rent increase is challenging, especially now. For the first time in a long time, when we consulted with tenants last year, we consulted on two subjects- the rent increase and the priorities for Housing. A slight majority of respondents said they’d prefer a freeze over a small increase. And the priorities are energy-efficiency measures; home improvements and newbuild housing.

“Unfortunately, since that consultation happened, spiralling inflation rates have seen the projected pressure on the housing account increase from £6.6 million to £10.2m. We simply can’t deliver the tenants’ priorities, continue with home improvements and house building without a rent increase.

“I have met with the Tenants’ Federations to discuss the challenges, and they support an increase to avoid reductions in critical services. This 5% will mean our average weekly rent will be £82.41, which is still well below the Fife Living Rent threshold of £106.12.

“Around two thirds of tenants have their rent paid through housing benefit or Universal Credit, so much of the income we generate from higher rents will come directly from HM Treasury rather than Fifers’ pockets.

“And this year, I am setting aside £1.5m, to support tenants struggling with rent payments, or those just moving to Universal Credit. And an additional £.500m to support tenants in fuel poverty.

“There is no doubt in my mind that good quality housing provides not just shelter, but also essential security for families.

“We have to be able to maintain existing services, reduce the number of households in fuel poverty; invest in our housing – and continue to build in a Climate emergency and a fuel-poverty emergency.

“I thank all our tenants for the way they engage with us and support the council’s Housing Service.”

Full reports on the HRA budget and capital investment plan can be viewed here.

Meanwhile, Fife councillors have approved a budget for 2023-24, including a council tax rise of 5% on Band D, to help plug a £11.505m budget gap and avoid cuts to essential services. The Council said it will also draw on financial balances to allow one-off investment of an extra £6.448m in priorities for the year ahead.

Council Leader David Ross said: “Fife Council is affected by increasing inflation rates, just like households and businesses around the Kingdom. Our energy bills and service costs are soaring, while more and more people are turning to us for help – inevitably our budgets are being squeezed.

“Our budget challenges are not because of poor financial management. On the contrary, through a range of budget realignments and accountancy measures we identified ways to reduce next year’s expenditure by £26million before today’s meeting. This advance work has put Fife in a stronger financial position than many Scottish councils who are forced to both increase council tax and cut services. And yet we still faced an £11.505m hole in our budget for next year.

“We’ve tried to limit increases in rent and council tax as far as possible, but an increase is necessary to avoid damaging service reductions and job losses that would also affect Fife families. I know 5% increase on band D council tax sounds a lot, but it equates to £1.27 a week on the household bill and, overall, the increase will raise £9.080m to help cover the cost of keeping local services running.

“We’re still committed to helping people cope with the rising costs of living. And we’re taking £8m from previously uncommitted balances to allow some small but important investments.

“We’ll be spending over £2.9m on hardship and cost of living support next year as well as providing permanent funding for the Café Inc services which provides free meals for all families in holiday periods. And I’d urge anyone struggling, even if you haven’t received benefits before, to check whether you’re eligible for council tax discounts or other financial support.”

He added: “We will also be investing an additional £3.5m to maintain Fife’s roads which is seen as a priority by people across the Kingdom.

“This budget addresses unavoidable financial pressures and protects our vital services, while allowing prudent investment in top public priorities.”