Council Tax Increases Confirmed for Edinburgh and Fife
City of Edinburgh and Fife councils have confirmed plans to raise council tax in the upcoming financial year.
Edinburgh's Labour administration reached an agreement with the Liberal Democrats and Conservatives during Thursday's budget meeting, reducing a proposed 5% increase to 4%. The deal also includes a freeze on pay-and-display parking rates.
Meanwhile, Fife Council will proceed with its planned 5% council tax rise.
These decisions place both regions among those with the lowest council tax increases across Scotland.
Specific Tax Band Increases in Edinburgh
In Edinburgh, a band B property, which is the most common property band in the city, will see its council tax rise to £1,264.70 per year.
The cost for a band H property, the highest council tax band, will increase to £3,983.82 annually.
Fife Council Budget Allocations
Fife Council emphasized the significant pressures on health and social care services, allocating a total of £5.5 million to these services from its own budget combined with Scottish government funding.
Additionally, the council will dedicate £200,000 to a mental health response car, enabling it to cover a larger area.
Wider Scottish Council Tax Context
Nine Scottish councils are expected to announce their 2026-27 budgets on Thursday, with several having agreed their budgets earlier this week.
Aberdeenshire and Moray councils have so far agreed the highest council tax rise at 10%.
Last year, Edinburgh’s council tax increased by 8%.
Additional Edinburgh Council Commitments
The Edinburgh council also committed to initiating discussions with Lothian Buses regarding the return of a dividend.
Prior to the pandemic, the publicly owned bus company returned excess profits to the council, but this has not occurred since.
Introduction of Tourist Tax in Edinburgh
Edinburgh will become the first council in Scotland to introduce a tourist tax.
The visitor levy, set at 5% on overnight stays in hotels, bed and breakfasts, and self-catering accommodations, will take effect from 24 July 2026. It is estimated to raise approximately £50 million annually.
Other Relevant Tax Changes
Scottish Water announced in January that water and sewerage rates will increase from April, with household bills rising by 8.67%.
Earlier this year, the Scottish government also announced the introduction of two new council tax bands starting in April 2028: band I for homes valued between £1 million and £2 million, and band J for properties valued above £2 million.
Council Tax’s Role in Local Budgets
While council tax constitutes a relatively small proportion of each council’s overall budget, it remains the area where councils exercise the most control.
