Nine local authorities set council tax rises above rate of inflation

Almost one-third of local authorities in Scotland are set to implement council tax increases significantly exceeding the inflation rate, a move confirmed recently for the upcoming financial period. Among these, households in Aberdeenshire learned they will face a 10% rise in council tax for the second consecutive year, following the announcement of £9 million in budget cuts. This increase is one of the steepest in the country and reflects the financial pressures faced by the council.

In Edinburgh, city councillors agreed to a 4% rise in council tax after a budget deal was reached among Labour, Liberal Democrats, and Conservative members. Originally projected at 5%, the increase was reduced following the agreement, resulting in one of the lower tax hikes in Scotland. Meanwhile, other councils such as Fife have approved rises of 5%, whereas Renfrewshire and Clackmannanshire confirmed increases of 7.5% and 5.6% respectively, to cover rising costs and support local investments. Some councils, including East Ayrshire (6.9%) and Stirling (8.75%), have also announced notable tax hikes, with Glasgow’s SNP and Green coalition agreeing to a 5.9% increase.

Several other Scottish councils have set increases that are more than three times the current inflation rate. Comhairle nan Eilean Siar initially proposed a 9.5% rise but later settled on 8.5%, with North Ayrshire following suit alongside the Scottish Borders and Western Isles. Other regions such as Shetland, West Lothian, and East Lothian have decided on increases between 7% and 8%, while East Renfrewshire and South Lanarkshire have confirmed rises of 6% and 6.5% respectively. Councillors justified these decisions by citing the need to safeguard local services and to fund key areas like roads, social care, and leisure facilities.

Aberdeenshire Council highlighted the financial necessity of the increase by warning of a funding shortfall exceeding £17.5 million without additional income. To balance the budget, proposals include reduced school cleaning and grounds maintenance, halting road line painting on residential streets, and withdrawing contributions to sheltered housing support. Before last year, council tax rates in Scotland were largely capped or frozen for nearly two decades. Despite receiving substantial funding from the Scottish government, local authorities claim these funds have not kept pace with the rising demands for services, which include education, social care, public transport, and leisure. Although the Scottish government has made no moves to freeze or limit council tax this year, ministers have expressed hopes that significant rises can be avoided. In response to ongoing financial challenges, some councils are exploring alternative revenue sources, with Edinburgh set to become the first in Scotland to introduce a 5% tourist tax on overnight accommodation from July 2026, expected to generate approximately £50 million annually

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