Nine local authorities set council tax rises above rate of inflation

Council tax increases well above the rate of inflation have been confirmed by almost one third of local authorities across Scotland.

Households in Aberdeenshire - where £9m in cuts have been identified - found out on Thursday they will face a 10% increase in council tax for the second year in a row.

It comes after Moray Council gave the go-ahead to a 10% rise on Wednesday, more than three times the rate of inflation.

Edinburgh councillors confirmed a 4% council tax rise after Labour struck a deal with the Liberal Democrats and Conservatives at the budget meeting, expected to be among the lowest in Scotland.

The projected 5% increase was cut down by one percentage point as a result of the deal.

Fife Council approved a 5% hike in council tax on Thursday afternoon.

Local authorities claim higher local taxes are necessary to fill budget gaps running into millions of pounds.

Councillors in Renfrewshire and Clackmannanshire also agreed increases to council tax on Thursday morning of 7.5% and 5.6%, respectively, to help fund investments and meet rising costs.

Meanwhile council tax in Dumfries and Galloway will rise by 8.5% from April after the SNP administration failed to get its budget passed.

They had proposed a 7.5% increase but lost by one vote, with the Labour group's plan approved instead.

Council tax in North Lanarkshire is set to rise by 7%, East Ayrshire confirmed a 6.9% council tax increase - lower than the proposed 8% - and Stirling approved an 8.75% hike.

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

Scottish Borders Council was the first council to agree on an increase, an 8.5% rise which is more than 2.5 times the current rate of inflation.

In Glasgow, the largest local authority by population, the SNP and Greens agreed a 5.9% rise in council tax.

Four Scottish councils have now agreed increases three times more than the rate of inflation.

As well as the Moray and Aberdeenshire increases, council tax in Argyll and Bute is to rise by almost 10% as the local authority tries to fill a gap of more than £13m in its finances.

Councillors said the 9.7% increase was needed to help protect local services and to fund investment in roads, social care support and leisure facilities.

A council tax rise of 9% was voted through in Midlothian after its budget was approved.

Comhairle nan Eilean Siar had originally proposed increasing bills by 9.5%, but the local authority's policy and resources committee backed a lower figure of 8.5%, which was confirmed on Tuesday.

North Ayrshire Council joined the Scottish Borders and Western Isles with an 8.5% increase after the SNP administration's proposed 12% council tax rise was defeated.

Shetland, West Lothian and East Lothian councils all voted for increases between 7% and 8%.

East Renfrewshire Council has also announced its budget for the coming year, with council tax going up by 6%, while South Lanarkshire Council confirmed a 6.5% hike.

Aberdeenshire Council officials said that without an increase in income, the council was 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 approved 10% rise in Moray and Aberdeenshire are expected to be the biggest in Scotland.

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

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

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

A Scottish government spokesperson said: "At the request of local government body Cosla, council tax is a local tax, set and administered by individual local authorities.

"However, ministers have said the above inflation settlement to local government should mean councils should restrain themselves to only applying 'reasonable' increases."

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 have 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.