Edinburgh & Fife both approve significant council tax hikes
Last updated 20th Feb 2025
Inflation busting hikes in council tax have been confirmed on both sides of the Forth.
Edinburgh and Fife's local authorities approved a rise of around 8% in controversial budget proposals on Thursday.
They set their spending plans for the years ahead as they sought millions of pounds worth of savings.
Edinburgh focus;
In the capital, councillors also agreed on increases in charges for many council services, which promising new funding for road safety and no cuts to transition teachers.
It comes after 11th-hour negotiations led to a deal between the Labour administration and the Conservative and Liberal Democrat groups.
Presenting the budget, Labour councillor Mandy Watt said: “This administration has put forward a balanced budget that prioritises areas that residents say they care about, while staying true to the council’s core commitment of tackling poverty and climate change.”
Labour priorities, such as new funding for schools and an investment in temporary accommodation, survived in the compromise budget.
Liberal Democrats meanwhile got £1.6 million in new funding for road safety, and blocked cuts to transition teachers and pupil support assistants.
And Conservatives won £1m in funding for reforms to the Edinburgh Integration Joint Board, which delivers health and social care funding.
Further, they secured £0.5m for funding the council’s data analytics team, £0.5m for council enforcement and £0.5m for new funding to support educational attainment.
A notable omission from the budget was substantial new funding for holiday hubs, a respite scheme for the families of pupils with additional support needs.
Deputations earlier in the day had focused on the scheme, with one parent raising the fact that the yearly time available for each student has shrunk from six weeks to two since 2018.
Edinburgh Council’s embattled former leader Cammy Day voted for the compromise budget lodged by the administration.
Meanwhile, Ross McKenzie, an independent councillor who was once in the Labour group, voted for the Green budget.
Fife focus;
Fife councillors debated between the minority Labour Administration’s 8.2% or SNP’s 6.4% proposals. Ultimately, Labour’s plans – with unanimous support from Conservatives and Lib-Dems – won 40-31.
The increase will cause council tax bills for band D properties in Fife to rise by about £113 a year – which is about £9.40 per month.
“This has been one of the most challenging budgets we’ve faced during my time as a councillor,” Council Leader David Ross (Labour) said.
“We know asking people to pay more on council tax is going to have an impact for families, but cutting back on vital local services is going to have more of an impact – particularly on the most vulnerable.”
He added: “We have to strike a balance between making savings, raising council tax and continuing essential investment in our services for local people.”
However, SNP opposition group leader Craig Walker argued that Council Tax should be kept as low as possible to protect residents in Fife.
“Our 6.4% increase represents a more responsible and balanced approach to the financial pressures we face and it ensures we’re not passing on an excessive cost to our residents – and we’re still maintaining quality services that are essential to us all,” he said.
Even with the 8.2% increase, Labour is anticipating a 5% increase in Council Tax rates in both 2026 and in 2027.
“That’s a cumulative increase of nearly 20% in council tax,” Cllr Walker highlighted.
However, Councillor Altany Craik (Labour for Glenrothes West and Kinglassie) pointed out that the difference between the SNP proposals and Labour’s equates to around 50P per week – or about £25 a year.
“For 50p a week, Fife Coast and Countryside Trust can continue to improve the service it provides, road maintenance – potholes – are getting an extra £3.5million this year,” he said.
“For 50p a week, the Health and Social Care Partnership is getting £9.9m extra to keep caring for our most and elderly with care packages and other services, funding digital transformation.”
He added: “As you can see, we’ve managed to get a lot out of that extra 50p a week.”
SNP Councillor John O’Brien (Buckhaven, Methil and Wemyss Villages) argued: “It’s been spoken about 50p here and 50p there, but where I come from every penny is a prisoner to put food on the table.”
After nearly three hours of debating, Fife Councillors finally put the budget proposals to vote. With unanimous support from both Lib-Dem and Tory councillors, the Labour proposals won 40-31.