The draft revenue and capital budget proposals have been developed by a cross-party group of councillors, which is set to continue its work over the next year with a view to working collaboratively and engaging with residents to work through any financial pressures together.

The proposed financial plan includes a 10 per cent rise in Council Tax, which was indicated in plans in 2024/25. It follows multiple years of Council Tax being frozen, the income generated from this will allow frontline services to be protected while delivering investment in key community priorities. For a Band D property, the impact of the increase will be £2.61 a week.

Councillor Euan Jardine, leader of Scottish Borders Council, said: “We are not just setting a budget we are making responsible choices to secure the future of our communities. A 10 per cent increase in Council Tax is one of the necessary steps we, as a cross-party budget group, are proposing to ensure we can protect vital services while investing in the long-term prosperity of our region. This has been an extremely difficult decision, agreed upon by members across the political spectrum.

“We fully understand the financial pressures facing households, but we also recognise how many residents depend on the Council for essential services. This proposed increase will not only help safeguard education, social care, and support for our most vulnerable, but also allow us to invest in infrastructure such as schools, roads, and community projects ensuring that the Scottish Borders remains a great place to live, work, and do business.

“Our focus is not just on the present but on building a sustainable, thriving future for our communities. These decisions are never easy, but by acting now, we are putting the Council and our region on a stronger footing for the years ahead.”

The views of over 1,000 local people who completed the budget consultation, along with responses gathered during Community Conversation events, have been fed into the cross-party working group and have been considered during the budget process. Overall respondents to the consultation showed support for the Council’s approach to balancing the budget.

Councillor Robin Tatler, leader of the Independent group, said: “The response to this year’s budget consultation was encouraging, with those who participated, broadly supporting our initiatives which range from increased services productivity through the use of digital technology and Modern working practices to a renewed approach to direct payments for adult social care.”

Councillor Elaine Thornton-Nicol, leader of the SNP group, added: “The Scottish Borders Council budget process has been incredibly difficult this year and we have had to make some tough decisions.

“What we must do now is look at the speed of digital transformation that so many of those who responded to the budget survey were highly supportive of while ensuring there is an in-person option for those who need it.  

“It is vital we protect frontline services at the same time as we try to make money stretch – just like all of us in our own homes have to do.  Every Borderer needs to know that there are supports there for people who are struggling financially, so please reach out. 

“Although we are in opposition, we are committed to working with parties across the political spectrum to minimise the impact of future budget savings on all of our communities whilst driving the conversations that ensure Borderers have a real say in what happens next.”

Councillor Euan Robson, leader of the Liberal Democrats group, said: “Some difficult decisions lie ahead for all local councillors given the current financial pressures.  Our communities and citizens are at the heart of what we do and we are committed to spending on the issues that matter to them.”

Draft budget highlights:

• £300m capital investment over the next 10 years, including into new schools and care facilities and £2m on play and outdoor spaces
• £21.2m to be spent on roads and transport infrastructure over the next three years
• Additional funding to support new Care Villages in Tweedbank (now has planning permission) and Hawick
• Investment into businesses infrastructure to support inward investment and job creation in Tweedbank
• £20m delivered through Levelling Up Partnership to support new business space, housing and transport connectivity
• £1.7m delivered through Shared Prosperity Funding to support local communities and place
• Continuing to deliver £10m Borderlands investment in Destination Tweed
• Increased funding to support Live Borders
• Additional funding to manage significant pressures in out of area care placements for young people with additional needs
• Investment in CCTV
• Maximised opportunities to use Council Tax charging to reduce numbers of long term empty properties
• Continued commitment to making the Council more efficient to support budget savings, including through the use of technology
• Continued support to develop the business case for the extension of Borders Railway to Carlisle
• Continued commitment to making the Council more efficient to support budget savings, including through the use of technology

 The draft financial plan will be considered at a meeting of full Council on Thursday 20 February.