Aberdeen City Council approves 2025/26 budget plan

New and upgraded schools, a major roads project, continuing investment in the city centre, and increased support for vulnerable and disadvantaged citizens form the basis of Aberdeen City Council’s 2025/26 Budget.
The council is to spend £247 million on schools over the next five years, including £121m on the new Hazlehead Academy. There is a commitment to expand facilities at Harlaw Academy, refurbish St Peter’s Roman Catholic School and Ferryhill Primary, and progress an extension for Bucksburn Academy.
To help reduce congestion, £55m will go to the Berryden Corridor Improvement Project, with work starting next year. In the city centre, £13m will be used to enhance the Castlegate as a public space.
The Budget also makes £1.534m available to the Fairer Aberdeen Fund in 2025/26, £1m through the Anti-Poverty and Inequality Committee for people struggling with the cost of living, and an extra £9.5m to deliver social care, bringing the council’s total award to the Integration Joint Board (IJB) to £140m for the coming 12 months.
Councillor Alex McLellan, convener of the Finance and Resources Committee, said: “Despite the council operating in incredibly challenging circumstances, we remain focussed on delivering essential public services and assisting people through the ongoing cost-of-living crisis.
“Aberdeen City Council is continuing to invest in the school estate, in roads, and other key infrastructure such as the regeneration of the city centre and beach area. These actions will ensure Aberdeen continues to be a place people want to live, want to work, want to raise a family, and want to start a business.”
The Budget allocates £668m to delivering public services in 2025/26 and £709m to capital projects over the next five years.
The Common Good Fund will help provide nearly £1.5m for 15 external organisations for 2025/26, supporting recommendations put forward by the Culture Investment Panel. Aberdeen Performing Arts was awarded £961,000.
Sport Aberdeen, which operates the city’s leisure venues, will receive £4.1m for 2025/26.
And the council will also fund a Cruyff Court in Kincorth – the city’s 4th – in partnership with the Denis Law Legacy Trust.
The gap between income and expenditure was estimated at £18.1m for 2025/26. To help address the shortfall and maintain service delivery, Council Tax is to rise by 9.85% in 2025/26.
For the next 12 months, the council’s Carbon Budget was set at 22,567 tonnes of carbon dioxide equivalent, a maximum target on the road to Next Zero emissions by 2045.
Actions agreed include:
- Completing a £19m investment in a Hydrogen Hub, a joint venture with bp to produce and distribute green hydrogen
- £9m to enlarge the electric vehicle charging network.