Perth and Kinross councillors – which covers John Swinney’s Perthshire North constituency – are being recommended to approve a 10 per cent council tax rise in 2025/26.
The SNP-led council is tabling the rise despite both first minister John Swinney and finance secretary Shona Robison saying there was no need for big council tax rises.
The change would see residents living in a Band D property, pay an extra £11.70 a month from April 2025 – amounting to £1,544.05 for the year.
Elected members will meet on Wednesday, February 26 to set Perth and Kinross Council’s (PKC) 2025/26 revenue and capital budgets.
The council tax strategy tabled has already been voted through by 22 votes to 15 on December 4, 2024 as part of PKC’s medium-term financial plan. It was supported by the SNP group, three Lib Dems and two Independents but rejected by the Conservative group, two Lib Dems and two Independents.
The strategy agreed was for a council tax increase of 10 per cent in 2025/26, 10 per cent in 2026/27 and six per cent in 2027/28.
Moving the inflation-busting tax rise for approval at the December meeting, SNP council leader Grant Laing said it would “end the annual cycle of death by a thousand cuts”. And, sure enough, the 2025/26 budget being tabled next week is missing the usual lengthy list of proposed cuts.
The revenue budget paper authored by PKC’s chief finance officer Scott Walker sets out the “significant” additional income generated by the three-year tax strategy.
Mr Walker’s report states: “This generates significant income of £5.22 million in 2025/26 and a further £5.873 million and £6.686 million in 2026/27 and 2027/28 respectively.”
His report also hints at the impact of repeated council tax freezes.
It states: “This strategy brings us back to levels which would have been realised had we had the opportunity to increase annual council tax at a modest three per cent rate over recent years.”
Councillors have been told the provisional Scottish Government funding allocation for 2025/26 “represents a £7.46 million cash increase (or 2.2 per cent) over the equivalent position for 2024/25”.
If councillors formally agree the council tax strategy, the chief finance officer’s report said it will “allow a managed reduction in the reliance on Reserves, improving the financial sustainability of the council”.