Unpaid council tax owed to South Ayrshire Council has surged in the space of six months, rising from about £12.1 million in August 2025 to more than £32 million by 31 March, according to Freedom of Information (FOI) responses seen by the Advertiser.
Scale of the arrears and who is affected
The earlier FOI showed arrears on 28,739 accounts, representing 21,531 people, and the total at that time included charges for water and wastewater which are billed alongside council tax. By 31 March the council’s reported outstanding liability had ballooned to a figure exceeding £32m.
- August 2025: c. £12.1m owed across 28,739 accounts
- 31 March: total arrears rose to > £32m
- Amounts the council owed to residents reduced from £271,907 to about £164,335, across a smaller number of accounts
Council tax rise and budget context
The increase in arrears comes in the same month that South Ayrshire’s council tax was raised by 8% as part of measures to set a balanced budget for 2026/27. Council papers set out a remaining funding shortfall of £8.463m for the year.
"Last year I warned the budget gap would be challenging to meet," said Cllr Ian Davis, describing the budget as a way to bridge the shortfall while supporting essential services.
Two proposed amendments at the council meeting on 5 March — to limit the rise to 7.5% (SNP) and 6.5% (Labour) — were not adopted.
Wider financial pressures
The FOI disclosures sit alongside wider analysis of local authority borrowing. Research cited by the Advertiser, carried out by the TaxPayers’ Alliance, places South Ayrshire among the more heavily indebted councils on a per-resident basis, with total borrowing recorded at £472.3m. Across the county border, East Ayrshire’s total debt was reported at £498.4m.
| Item | Figure |
|---|---|
| Unpaid council tax (Aug 2025) | £12.1m (28,739 accounts) |
| Unpaid council tax (31 March) | > £32m |
| Amounts council owed to residents (later FOI) | c. £164,335 (1,561 accounts) |
| South Ayrshire total debt (TaxPayers’ Alliance) | £472.3m |
For residents, the jump in arrears has practical implications. Higher numbers of unpaid accounts can increase pressure on council recovery teams, affect cashflow for services and complicate decisions on future council tax settings. The administration has said the rise in council tax was necessary to meet service needs and reduce the budget gap.
Further information on how the council intends to manage the growing arrears and the impact on services is expected to be discussed in forthcoming budget monitoring reports and committee meetings.
