The council faces a huge budget gap, estimated to be around £38.2 million over the four years to 2027/28. Following the Scottish Government Draft Budget announcement in December, and insufficient levels of funding for the council, council officers need to identify potential options to reduce spending and/or increase revenue to offset cuts to services. The options being considered would contribute towards balancing the budget - something the council is legally required to do.

Patrick Welsh, West Lothian Council’s head of finance and property services, said: “The options we’re having to explore demonstrate the hugely challenging financial position facing the council over the next four years. These potential options do not solve the issues and don’t generate anywhere near the level of savings and income we require, but they would be included in a comprehensive list of budget savings measures, many of which have already been agreed. We have a legal duty to balance the council’s budget.”

Changes to Scotland wide legislation to provide local authorities with the power to increase Council Tax charges for second homes from 1 April 2024 were agreed last year by the Scottish Parliament. Councils now have the potential to increase Council Tax income on second homes.

There are currently 86 second home properties for Council Tax purposes in West Lothian who would be affected.

A second home for Council Tax purposes is defined in regulations as “a dwelling which is no one’s sole or main residence, is furnished and is occupied for at least 25 days during a 12 month period”. Under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2016 second home owners in West Lothian are currently charged the full Council Tax for the band their second home is in.

Under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023 local authorities have been provided with the power to increase Council Tax charges for second homes by a premium of up to 100%, double the current charge, from 1 April 2024.

By using these new regulatory powers to raise Council Tax charges on second homes by the 100% premium from 1 April 2024, it is expected that annual Council Tax income will increase by £112,000 in West Lothian.

The council also estimate that realigning staff resources to focus further on the collection of Council Tax debt will raise a further £250,000 per annum.

The proposals are part of a report to the council’s Corporate Policy and Resources Policy Development and Scrutiny Panel. It is intended to present these potential additional recurring budget savings to the council for approval in February 2024 as part of the budget report.