Double-digit council tax rises proposed for second year in a row

Households are set to face another year of big council tax increases as local authorities propose rises well above the latest rate of inflation.

Scotland's three largest councils by population - Glasgow, Edinburgh and Fife - have all proposed a 5% increase, expected to be among the lowest in Scotland.

Many other councils are considering bigger rises, with Aberdeenshire and Moray councils both considering 10% increases, more than three times the inflation rate.

These figures could change as councillors in each local authority will be asked to approve the increases, which will take effect from 1 April.

Scottish Borders Council has already agreed an 8.5% rise in council tax, a figure which is more than 2.5 times the current rate of inflation.

The Office for National Statistics (ONS) said inflation in January was 3% which is lowest rate since March last year.

Aberdeenshire Council officials said without an increase in income, they were facing a shortfall of more than £17.5m in funding.

They have proposed cuts to services including reduced school cleaning and grounds maintenance, stopping road line painting on residential streets and ceasing sheltered housing support contributions.

The proposed 10% rises in Aberdeenshire and Moray are the biggest to be made public so far.

Comhairle nan Eilean Siar has proposed a 9.5% increase, Midlothian is contemplating a rise of 9% and councillors in Shetland have suggested a 7.3% hike.

Most households also pay water charges through their council tax bills, based on the council tax band of their home.

Scottish Water announced in January that water and sewer rates would go up 8.67% from April.

Earlier this year, the Scottish government also announced two new council tax bands are set to be added from April 2028 – band I for homes valued between £1m and £2m, and band J for properties above £2m.

Prior to last year, council tax rates had been frozen or capped for much of the past 20 years.

In the 2024-25 financial year, the government subsidised a nationwide freeze but that ended in April 2025.

Last year saw the biggest council tax increases in 20 years across Scotland.

Falkirk Council and Orkney Islands Council set the largest council tax increases in Scotland after councillor's agreed a 15.6% and 15% rise, respectively.

Councillors in Edinburgh backed an 8% increase, while Glasgow, the largest council, went for 7.5%.

Local authorities claimed higher local taxes were necessary despite a generous Scottish government settlement because of many earlier years of restricted funding.

The Scottish government has made no attempt this year to implement a freeze or limit increases, meaning local authorities have complete freedom to increase the council tax by whatever is agreed and voted on.

Ministers have, however, said they hope large rises can be avoided.

Local authorities are responsible for providing education, social care, public transport, and culture and leisure.

Funding from the Scottish government makes up the bulk of council finances.

Council tax makes up a relatively small proportion of each council's budget but it is the area where the council has the most control.

For instance, council tax accounted for 18% of Glasgow City Council's budget for the 2025-26 financial year.

While there was a council tax freeze for many years, revenue from the tax has still risen in real terms because of new homes being built.

Over the past decade, the general trend has also been for a real terms rise in the Scottish government grant.

But councils argued they are now providing more services in areas such as early years provision, free school meals and adult social care - and claim the extra money has not kept pace with extra costs.

Now many councils are seeking other ways to raise revenue

Edinburgh will be the first council in Scotland to introduce a tourist tax.

The visitor levy of 5% on overnight stays in hotels, bed and breakfasts and self-catering accommodation will take effect from 24 July 2026. About £50m is expected to be raised annually.