PA MediaLocal authorities representing about two million Scots are set to confirm their biggest council tax increases in 20 years.
With a nationwide freeze coming to an end, Edinburgh, Glasgow, Fife, Scottish Borders and North Lanarkshire councils are setting their new rates.
It is expected there will be a 10% hike in the Borders, with about 8% expected in Edinburgh and up to 7% a possibility in Glasgow.
A 10% increase has been mooted in North Lanarkshire, with an 8% hike proposed in Fife.
The councils will agree increases – all of which are expected to be well above the latest rate of inflation of 3% – at meetings on Thursday.
It comes after East Lothian became the first council to announce a double-digit increase.
Scotland’s largest local authority, Glasgow City Council, has warned that it is facing a gap of £7.9m before council tax increases are factored in.
That prompted protests outside the city chambers by unions, who urged councillors not to impose cuts.
Council tax rates have been frozen or capped for much of the past 20 years.
In the current financial year, the government subsidised a nationwide freeze. It ends in April.
Finance Secretary Shona Robison has said a £15bn-plus funding package for local authorities in the 2025-26 budget should allow them to “minimise” any council tax increases.
Financial fears
Local authorities warned before the Budget announcement that they were facing a funding gap of almost £400m.
Financial concerns have been heightened by the UK government’s plan to increase National Insurance contributions.
Robison has pledged to cover 60% of the associated costs, but Scottish local authorities say they are still facing a £100m shortfall as a result of the UK tax hike.
Council tax rates are based on house valuations from 1991, with increases often hitting many poorer households harder than better off ones.
The SNP administration has been promising to reform the system since coming to power in 2007.
Earlier this month, the Scottish government and council body Cosla announced a joint consultation on the issue.
But with the parliamentary term scheduled to end in May 2026, there will be no change before then.
