A £37 MILLION investment in new schools and expansions has been announced, as East Lothian Council plans to invest millions into communities to help cope with its growing population.

The new council budget includes a new £16million primary school for Wallyford, as well as major investment in North Berwick and Dunbar, over the next three years.

But it will also see a rise in council tax introduced in 2017, rent increases for council tenants and price increases for some services.

Jim Lamond, East Lothian Council's chief finance officer, said the county was paying the price of its success as its high quality of life attracted more people to live in East Lothian and increased housing demand. He said: “East Lothian is on the verge of becoming a victim of its own success."

The council administration has set aside significant investment in capital spending in its three-year budget, with £16million allocated for roads.

However, it has also confirmed it is looking for £1.2million on staff savings over the same period, with nearly £1million in cutbacks included in its 2018/2019 budget.

The budget also sees a dramatic cut to the funds the council currently pays Police Scotland for additional officers, from £500,000 to just £100,000.

Councillor Willie Innes, council leader, said cuts had been made necessary after the Scottish Government reduced funding allocated to the local authority by over £4.4million this year.

He said the council faced a shortfall in funding this year’s budget of nearly £10million.

However, Councillor Stuart Currie, SNP council opposition leader, said additional funding from the Scottish Government of £4.37million, for the newly formed East Lothian Integration Joint Board, meant the shortfall amounted in reality to just £62,000.

During the budget meeting on Tuesday in the Town House, Haddington, the council also agreed to raise rent by five per cent annually for the next five years and increase council tax for the first time in a decade in April 2017 by three per cent.

Costs for some services are also likely to go up, with the council administration looking to recoup funds through increased burial charges, entrance fees to museums and arts venues, and reducing its payments to enjoyleisure, which runs sports venues in the county, by £100,000 in the coming year.

Among projects targeted for investment in the new budget are: a £10million three-year investment in Dunbar Grammar School; a new £16million Wallyford Primary School; £2.37million for coastal protection and flooding work; £1.15m for Port Seton Sports hall and £1.11million for Whitecraig Community Centre; £1million towards care home provision Esk Green/Abbey; £9.37m for Law Primary School; £8.9m for Letham Primary School.

The administration budget, which was approved by a vote of 13 to 8 with two abstentions, will also take £3million out of the council’s general reserves funds to balance the books.

An alternative budget proposal by the SNP group – which was rejected – also recommended raising council tax from next April but did not cut police funding. Instead, it looked into making savings of £1.15m through sharing services with other local authorities and cutbacks over the coming financial year, as well as saving about £1million through scrapping vacant posts at the council, with more savings by reintroducing the voluntary early retirement scheme.

Mr Innes said: “In common with other local authorities across the country, we are facing serious financial challenges in the years ahead as a result of unacceptable cuts imposed by the Scottish Government.

“The challenges placed upon the council by an increasing population are recognised with the need to balance required infrastructure whilst retaining the unique identity of our local communities.

“I strongly believe our budget will continue to support our communities and protect the most vulnerable from the austerity measures being imposed upon us.”

The SNP opposition branded the council administrationg “disgraceful” during heated debates over the budget proposals, and they dismissed the plans to invest in more capital spending dubbing the council leaders a council who could not spend.

But Mr Currie said: “This is a council who cannot spend the money it sets aside, it underspent its budget by £3million over the last financial year.

“You say ‘we are going to build’ yet not a single planning application has been submitted.”