At next week’s Council meeting, Perth and Kinross councillors will be asked to agree that planning for next year’s budget meeting in February should be based on an assumed Council Tax rise of 10% for 2025/26, and indicative rises of 10% for 2026/27 and 6% for 2027/28.

The proposal recognises the increasing demands on public services, and in particular the growing number of adults who need more complex care packages, and increases in primary school pupils with additional support needs. The funding raised by increased Council Tax would give Councillors more options to protect these important services, and to tackle the local impact of poverty.

By planning for these increases over three years, the Council can provide stability and predictability in budget planning, allowing more effective allocation of resources.

Leader of the council, Councillor Grant Laing, said: “It’s important to emphasise that next week’s decision provides a direction of travel as Council officers and elected members prepare for next year’s budget. The final decision on Council Tax levels won’t be made until the budget is set in February.

“What this proposal does do is clearly recognise the challenges facing the Council. The increasing demands and rising costs of providing vital services for those most in need requires a bold solution. At just £11.70 a month for people in a Band D property, we could raise over £10m to protect health and social care, support for children with additional support needs and invest in tackling poverty.”

For residents living in a Band D property, the increases would work out as an extra £2.70 a week or £11.70 a month from April 2025. Residents of Band A-C properties will be less than this. For residents facing financial difficulties, the Council’s Welfare Rights and Local Taxes teams will continue to work to ensure that anyone entitled to Council Tax discounts and/or additional benefits is supported to receive these.

Each year’s Council Tax increase will be confirmed at the Council’s annual budget meeting, so can be adjusted as required based on the savings and investment decisions made by Councillors.

The council’s chief executive, Thomas Glen, added: “We remain committed to our programme of transformation and change and financial best practice to reduce operating costs where we can and deliver best value for the people of Perth and Kinross. But, the challenges we face cannot be answered by simply continuing to cut services and service standards one-by-one. We are recommending this Council Tax strategy to Council because it allows us to focus budget planning on protecting the services most needed by our residents and what we need to deliver these over the longer-term.”

The proposal includes increasing the percentage of income from Council Tax used to support the Capital Budget from 1% to 1.25%.

Councillor Laing explained: “We introduced this initiative last year as a way of ensuring the sustainability of our capital investment strategy. We’ve already had a lot of interest in this approach from other Councils who are also wondering how to balance the increasing costs of capital projects with the need for investment in the future of their communities. Diverting an extra 0.25% from future Council Tax income gives us even more confidence in the sustainability of our investment in buildings and infrastructure.”