Friday February 27th 2026
Edinburgh City Chambers
Written by Midlothian View Reporter, Liam Eunson
Thousands of new homes are set to be delivered in Edinburgh over the next five years thanks to an additional £1.6 billion agreed by councillors yesterday.
The Council’s Budget, passed on 26 February, includes a record spend on providing affordable housing alongside significant investment in frontline services, children and education.
The council explained that ending poverty and protecting vulnerable residents is at the heart of the spending plans, which prioritise homelessness prevention, sustaining Edinburgh’s third sector partnerships and investing significant sums in education and health and social care services.
Due to a change in loan financing arrangements, officers have been able to address budgetary challenges and preserve frontline services while enabling members to limit Edinburgh’s Council Tax rise to 4% – set to be the lowest increase across Scottish councils this year. Councillors also agreed a freeze on most fees and charges for the next 12 months, including parking permit and pay and display charges.
Alongside yesterday’s decision, the Edinburgh Visitor Levy scheme, the first set of spend programmes of which were agreed earlier this month, is set to generate an additional up to £29 million this financial year to help sustain and promote Edinburgh’s status as one of the world’s favourite visitor destinations.
Council Leader Jane Meagher said:
“I’m proud that we’ve once again delivered a balanced budget that focuses on meeting the needs of Edinburgh’s residents. It is a budget that reinforces our commitment to tackling poverty, prioritising prevention and protecting frontline services for those most in need of our support – all while keeping the increase in Council Tax to one of the lowest, if not the lowest, in the country.
“We were the first city in Scotland to declare a housing emergency and are now putting our money where our mouths are with an additional investment over the next five years – one of the largest housing interventions by a local authority in modern times. This will provide thousands of much-needed affordable new homes for families, while reducing the use of costly and unsuitable temporary accommodation and helping us to reduce the scourge of poverty on this city.
“Alongside the additional £6 million we’ve pledged towards social care, we’re prioritising support for some of our most vulnerable children and young people across the city. We’re investing in early family support, keeping children with their families wherever we can. We’re expanding support for pupils with additional support needs, with extra staff in both our special schools and mainstream schools. And we’re committing £86 million towards progressing major extensions at both Craigroyston and Queensferry High Schools.
“It’s important to remember that we’re not working in isolation and, having listened to our third sector partners, we’re today committing an additional £4 million to help them continue playing an essential role in supporting our residents – and, crucially, to plan with more certainty and security.
“This ambitious budget clearly demonstrates the strength of listening to our communities and working across party lines to do what’s best for the residents of Edinburgh.”
Finance and Resources Convener Mandy Watt added:
“We remain the lowest funded council in Scotland, which poses a real challenge when setting our budget each year. Despite this, officers have produced an innovative budget that prioritises the services that most matter to the people of Edinburgh – from investing in our roads, pavements and parks to caring for our youngest, oldest and most vulnerable residents.
“This is a budget that protects, and in many cases enhances, these frontline services. But it also allows us to protect our residents and businesses from bearing too much of the financial burden that goes with it. I’m proud, then, that we’ve been able to limit our Council Tax rise to only 4% and to freeze most fees and charges for the next 12 months.”
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