Wednesday October 29th 2025
Scottish Borders Council headquarters
Written by Local Democracy Reporter, Paul Kelly
Scottish Borders residents can expect at least a five per cent hike in their Council Tax bills next year, it emerged today.
Over the next decade cash-strapped Scottish Borders Council faces a £69m shortfall to its budget.
The council currently has a provisional estimate for a five per cent Council Tax rise in 2026/27, but that due to factors beyond its control increases of eight and 10 per cent can not be ruled out.
The council’s Local Government Settlement from the Westminster Government is now not expected until mid-January next year – a month later than normal.
Concerns were also raised at a meeting of full council on Wednesday, October 29, that Scottish Government could implement a Council Tax freeze – limiting the local authority’s spending options.
Members were informed that each one per cent increase in Council Tax adds £800k to the budget for the council to deliver services, with an additional 10 per cent rise providing £8m.
Despite a 10 per cent Council Tax in the current financial year, the local levy remains one of the lowest in Scotland.
Councillor Leagh Douglas, SBC’s executive member for Finance, IT and Corporate Performance, said: “Even with a five per cent increase we remain one of the lowest charging authorities in mainland Scotland.
“A one per cent increase gives us roughly one million pounds. If that flexibility was taken away the shortfall must be found somewhere else and that means reductions.
“The stark reality is that the Scottish Government has a track record to freeze Council Tax in the year before the national elections.
“To the voter that may seem a generous gesture but it is not a free gift. It simply cuts off the income that sustains local services and strips away local control.”
The SNP’s Councillor Marshall Douglas responded by saying any suggestion that the Scottish Government would announce a Council Tax freeze was “totally hypothetical”.
Independent Robin Tatler said: “Every time the Council Tax has been frozen there has been insufficient funding to support local authorities and it does have a retrograde impact on services.”
The council’s chief executive David Robertson said: “To be perfectly clear the only organisation that can freeze Council Tax in the Borders is Scottish Borders Council.
“Scottish Government can encourage and incentivise that but under the legislation the decision rests with the council.”
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