Edinburgh council tax rise 'lowest in Scotland' and pay-and-display parking charges frozen while £1.6 billion invested in housing
Edinburgh's council tax is to rise by 4 per cent next year, hailed as likely to be the lowest increase in Scotland.
And pay-and-display parking charges across the Capital are to be frozen for a year, along with most of the council’s fees and charges.
The city council's 2026/27 budget, passed on Thursday afternoon, includes a £1.6 billion investment in housing, as well as £25 million over two years for roads and pavements, £86 million towards extensions at Craigroyston and Queensferry high schools, expanded support for pupils with additional support needs and an additional £4 million for the third sector.
The 4 per cent council tax rise means an extra £1.20 a week - or £62.54 a year - for a Band D property. The bill for a top Band H property will go up by £2.94 a week or £153.22 a year.
The council's minority Labour administration accepted additional investments proposed by the Lib Dems to win their support, including £400,000 for mending potholes, £500,000 for weed-clearing teams and equipment, and £1m for improvements to school playgrounds.
And the administration secured Conservative backing by agreeing to the 4 per cent council rise and the pay-and-display parking freeze.
Council leader Jane Meagher said the budget came in the context of a cut of over £600m in core grant funding from the Scottish Government over the last decade. She reminded councillors that Edinburgh was Scotland's lowest-funded council per head.
But she said: "We were the first city to declare a housing emergency in Scotland and now we will be the first to do something on an enormous scale about it. The £1.6bn investment represents the largest intervention by a council in modern times."
She said it would give the homelessness service around 2,500 homes for temporary accommodation, there would be funding to unlock around 1,100 settled homes at affordable rents on top of other investment in 2,300 additional settled homes.
"This budget also sees investment in new schools and school extensions to make sure all our young people can learn in a safe and inspiring environment to get the education they need."
Neighbourhood Prevention Partnerships, designed to tackle poverty by joining up services and making them more accessible, are due to be rolled out across five local areas.
Cllr Meagher said: "This administration is committed to taking all the local steps possible to eradicate poverty in Edinburgh. This means taking action to put more money directly into the pockets of people who most need it, helping them to access and keep jobs they need to stay out of poverty, and making it easier for people to find the support they need."
She said the budget also provided funding to ensure third sector organisations in the city had the security and certainty required to deliver critical services to residents.
Finance convener Mandy Watt said council staff had shown "considerable restraint" on pay awards, with a 4 per cent settlement this year and 3.5 per cent next year.
And she said: "Our intention is to match that with council tax - 4 per cent pay award, 4 per cent council tax. Not all councils have agreed their rate yet, but this is likely to be the lowest increase of any local authority in Scotland because we must do what we can for our citizens."
She said there were no cuts in the council’s budget. "We are focused on improving things for our residents, staff and visitors."
And she said Edinburgh was in the "enviable position" of being the first council in the UK to have a visitor levy, which was contributing to the low council tax increase.
Cllr Watt also highlighted the £50,000 allocated for putting "Bleed Kits" into council's schools and buildings. The kits are being promoted by campaigner Lisa Petrie after her son John McNab, 22, died in an alleged stabbing in Leith last September. A 16-year-old boy has been charged with his murder. Ms Petrie has raised thousands of pounds to install the kits - designed to deal with any severe bleeding - in easily-accessible places around the city.
Lib Dem councillor Lewis Younie underlined the importance of extra funding for third sector organisations, saying it would preserve key organisations without which the city would be poorer and the council would face the “impossible challenge” of picking up the slack they left behind.
And Tory group leader Iain Whyte put the case for freeing pay-and-display parking costs. “The charges are already discouraging use and damaging our city economy, especially for our many small traders who rely on a vehicle. That freeze will help residents and businesses with the cost of living and will potentially bring in more income than the alternative tax hike.”
SNP group leader Simita Kumar hit out at the criticism of the Scottish Government over funding. She said: “I am sick and tired of the false narrative about a funding formula that is determined by Cosla, ignoring also that Edinburgh receives the highest housing acquisition funding. This council has been given an additional £70m settlement alongside income from the Visitor Levy, all these decisions taken by the Scottish Government. Yet despite this, it’s this Labour administration which has presided over the suspension of housing allocations until March 2027. That is shameful."
The council also approved a 7 per cent rent rise for council houses, in line with the five-year rent strategy agreed in 2024, despite a claim that such an increase was "not economically viable" for Capital tenants.
Betty Stone, convener of Edinburgh Tenants Federation, told the council: "Edinburgh is one of the most expensive cities in Scotland to live in. Every week ETF hears from people who are struggling to make ends meet, falling behind with their bills and rent, and relying on food banks. A further 7 pr cent increase simply cannot be absorbed by many households without causing real hardships.
"Edinburgh already has the highest council rents in Scotland, yet tenants are not receiving the service that matches these costs. Edinburgh rents are up to 23.9 per cent higher than the Scottish average for a three-bedroom house. Overall tenant satisfaction is 67.2 per cent, far below Scottish average of 86.9. Only 63.3 per cent of homes met the Scottish housing quality standard, compared with the Scottish average of 87.2 per cent.
“Tenants are paying highest rents but receiving some of the poorest services.”
Greens argued unsuccessfully for the 7 per cent rise to be cut to 5 per cent by putting up the council tax on empty and second homes.
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