Perth and Kinross councillors vote for 10 per cent council tax increase

Perth and Kinross Councillors Back 10% Council Tax Increase

Perth and Kinross councillors have recently voted to support a financial plan that includes a 10% increase in council tax for the years 2025/26 and 2026/27, and a 6% increase in 2027/28. The decision, made on Wednesday, was met with both support and opposition from councillors. SNP council leader Grant Laing defended the move, stating that it would help put an end to continuous budget cuts.

The council’s decision came on the same day as the announcement of record funding to Scotland’s councils as part of the Scottish Government budget. While some councillors supported the tax increase as a necessary step to maintain services and address financial challenges, others raised concerns about the timing of the decision, coming just before the Scottish Budget outcome was known.

The approved strategy would mean residents in a Band D property could expect to pay an additional £11.70 per month from April 2025. The plan also includes allocating a portion of the council tax income each year to support the capital budget. While the proposal received support from certain councillors, including SNP members and some Independents, the Conservative group raised an amendment to reject the three-year strategy.

Councillors will reconvene in February 2025 to finalize the three-year revenue and capital budgets based on the approved strategy. This decision follows years of budget constraints and challenges faced by local authorities, with some councillors highlighting the impact of past council tax freezes on the council’s finances.

Overall, Perth and Kinross Council’s vote for a council tax increase reflects the ongoing financial pressures faced by local authorities in Scotland and the difficult balancing act between meeting budget requirements and providing essential services to communities.

Insights:
The decision by Perth and Kinross councillors to vote for a 10% council tax increase demonstrates the complex financial decisions local authorities must make to sustain services amid budget constraints. The debate among councillors reflects differing perspectives on how best to address financial challenges without unduly burdening residents. As the council moves forward with implementing the tax increase, it will be crucial to ensure transparency and effective communication with the community about the reasons behind the decision and how the additional revenue will be utilized. Balancing the need for financial sustainability with the provision of essential services will remain a key challenge for local authorities across the UK.