Biggest council tax rises in 20 years confirmed

The biggest council tax increases in 20 years are being confirmed by five local authorities across Scotland as a nationwide freeze comes to an end.

Scottish Borders Council has voted for a 10% increase, Fife has gone for 8.2% and councillors in Edinburgh have backed an 8% hike.

In Glasgow the ruling SNP group has agreed with the Greens to press for a 7.5% rise with some of that ring-fenced for more street cleaning, while a 10% increase has been mooted in North Lanarkshire.

Local authorities claim higher local taxes are necessary, despite a more generous Scottish government settlement, because of many years of restricted funding.

The five councils have a combined population of about two million people and the rises are well above the latest rate of inflation of 3%.

The Scottish Borders 10% rate – which was passed with only one vote against – comes two days after East Lothian became the first council to announce a double-digit increase.

Council leader Euan Jardine said for many years the Borders had some of the lowest council tax rates in Scotland, but a sharp rise was now needed.

“The 10% increase in council tax was an extremely difficult decision, but ultimately members across the political spectrum agreed it was necessary to protect frontline services and make investing in communities a priority,” he said.

Moray Council also intends to propose a 10% rise when it meets to set its budget next week.

Glasgow City Council, the largest local authority by population, had earlier warned it was facing a funding gap of £7.9m before council tax increases are factored in.

The ruling SNP group and Green councillors agreed to propose a 7.5% rise to the full council with £6.75m ring-fenced for 200 extra street cleaning staff as well as maintenance of roads, pavements and parks.

Unions have claimed the city is facing a crisis in its cleansing services, with uncollected rubbish and rat infestations in some areas.

Glasgow City Treasurer Ricky Bell said the rise, combined with this year’s settlement from the Scottish government, meant “we finally have some cash to invest” in frontline services “after years of austerity”.

“We’ll deploy those staff where they can have the most impact, including dedicated Neighbourhood Clean Teams who will be able to respond promptly to issues within communities,” he said.

In Edinburgh the budget was passed after 11th-hour negotiations between the Labour administration and councillors from the Lib Dems and Conservatives.

Labour priorities on funding for temporary housing and schools were retained, while the Lib Dems secured £1.6m for road safety and blocked cuts to pupil support assistants.

The Tories secured £1m for reforms of the joint board that delivers health and social care funding.

Council tax rates have been frozen or capped for much of the past 20 years.

In the current financial year, the government subsidised a nationwide freeze but that ends in April.

Other than 2023-24 – when many councils raised rates by about 5% – this is the first time for almost 20 years when a big increase has really been possible.

First Minister John Swinney said there was an extra £1bn of funding for councils in the 2025-26 Scottish Budget, taking the total government grant to about £15bn.

“I accept that there will be increases in council tax,” Swinney told reporters at the Scottish Parliament.

“But I think what the government is doing is investing in and supporting local authorities. Obviously, we’ve had to deal with enormous financial pressures.”

Council body Cosla said a combination of previous freezes, inflation and higher costs such as national insurance contributions meant councils were having to make “difficult decisions”.

Resources spokesperson Katie Hagmann said: “Council tax is one of the few options councils have to raise money to invest in local improvements such as roads; community halls and leisure centres; and public transport.

“These are services that benefit us all, but especially the people in our communities who might need extra support – such as children and young people, parents with young children, elderly people, or those with disabilities.”

Local authorities warned before the Budget announcement that they were facing a funding gap of almost £400m.

Financial concerns have been heightened by the UK government’s plan to increase National Insurance contributions.

Finance Secretary Shona Robison has pledged to cover 60% of the associated costs, but Scottish local authorities say they are still facing a £100m shortfall as a result of the UK tax hike.

Council tax rates are based on house valuations from 1991, with increases often hitting many poorer households harder than better off ones.

The SNP administration has been promising to reform the system since coming to power in 2007.

Earlier this month, the Scottish government and Cosla announced a joint consultation on the issue.

But with the parliamentary term scheduled to end in May 2026, there will be no change before then.

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

• 66% Scottish government grant
• 19% council tax
• 15% business rates

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

Glasgow City Council, for instance, spends about £830m on education and £570m on social provision.

While there has been a council tax freeze for many years, revenue from the tax has 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.

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