If agreed, this means £193 million will be spent improving the council’s existing housing stock, continuing the investment in new build housing and increasing the supply of affordable housing over the next five years. 

The agreed budget will allow the internal modernisation of some 2,800 properties and the continuation of the window replacement programme. It would also allow other works such as replacement roofs and wall coverings, along with other measures to help improve energy efficiency. 

Last year, the council agreed a 4.5% rent increase from 2024/25 - 2026/27. This is year two of the agreed three-year rent increase and will see an average increase of less than £3.80 per week. Tenants have already been advised of their new rent charge for the coming year.

Councillor Martin Kilbride, Buildings, Housing and Environment Portfolio Holder for South Ayrshire Council said: “If the budget is approved, it will allow us to continue with our housing capital investment programme over the next five years.

“This funding is vital as it allows us to continue to repair and improve our housing stock, meet the needs of tenants, and increase the supply of housing across South Ayrshire. 

“Any tenant struggling to pay their rent should contact our Housing Service. The sooner they do this the better as information, advice and support is available.”

The panel paper will be presented on March 6th.

Full budget agreement

Meanwhile, the council’s full budget for the financial year 2025/26 was agreed last week, with a focus on the protection of frontline services, income generation and investment in key areas, such as education, and health and social care.

The local authority said it committed to making South Ayrshire an attractive destination for residents and visitors, and its capital investment programme will see £344.5m invested across the area over the next 12 years. This includes £16m for Ayr Town Centre to improve Burns Statue Square, £1.5m for Girvan Regeneration works, and £2.5m as match funding for the Dunure Heritage project.  

The council is continuing to make improvements in all eight wards in South Ayrshire through its Ward Capital Projects programme, with a range of works already complete and new projects set to begin in 2025/26. It is also allocating £26.1m over the next 12 years to improve the road network across South Ayrshire.

Councillors agreed to invest £107.1m in the Health and Social Care Partnership (HSCP) - an increase of almost 6% on previous years. This will ensure the vital services they provide can continue, and people can access the care they need. Plans are also ongoing to repurpose the former Hourstons building into a mixed use ‘care village’ development, following significant investment last year.

Investment is continuing in a range of leisure facilities including ongoing works at the Citadel Leisure Centre and Prestwick swimming pool, a planned extension for Troon swimming pool, plus improvements to the all-weather pitch in Girvan. 

Plans for the new Girvan Primary School are well underway, and improvements are being made to the exterior of Troon Primary School.

To make the investments, fees for some council services are being increased, including sport and leisure, golf, allotments, and commercial waste collections.

Council Tax will increase by 8% in 2025/26, equating to an increase of £9.69 a month for a band D property. To assist with financial planning for future years, councillors are also assuming a further increase of 8% in 2026/27, and a 6% increase in 2027/28. Any future increases will be reviewed in the relevant year’s budget setting process.

Leader of South Ayrshire Council, Councillor Martin Dowey, said: “I’d like to thank those of you who took the time to take part in our budget consultation. Most respondents told us that they would prefer to see an increase in charges rather than a decrease in services provided, and we have taken this into account.

“This budget comes at a time of significant financial pressure, and we’ve not only balanced the books, but also made investment in a range of areas and worked hard to keep any increases to service charges as low as possible.

“It’s been challenging, but we are confident that the steps we have taken will protect jobs, essential services and improve the local area for residents and visitors.”

South Ayrshire Council’s portfolio holder for Finance, ICT, and Procurement, Councillor Ian Davis, said: “This budget reflects our commitment to protecting essential services while also focusing on creating sustainable income for the future. We’re focusing on delivering the best service to our residents with the resources available.

“I know the decision to raise Council Tax won’t be welcomed, but it is a necessary step to make sure we can continue to provide our vital services in the face of rising costs.

“We know there are hurdles ahead, but by planning ahead and exploring various solutions, we are confident we can meet our financial objectives and savings targets in the years to come.”