Council Tax in Edinburgh will rise by 4% following the budget meeting on Thursday.
Council officers had recommended a 5% rise and the Labour administration had agreed with that proposal.
A 4% council tax increase means that the tax paid on a Band D property will rise to £1,626.05 per year – £62.54 more than the 2025 rate of £1,563.51.
Last year council tax in Edinburgh rose by 8%. The Conservatives demanded that the council will talk to Lothian Buses about returning a dividend to the council – the sole shareholder. There will be no increase in pay and display charges in the city.
The Green group proposed an increase of 6% and a surcharge of 300% on second homes and empty homes.
Councillor Iain Whyte said: “We came to today’s meeting with a plan for the lowest Council Tax increase of any council in Scotland — a 2.5% rise that would have given Edinburgh households a genuine real-terms reduction in their bills. We are disappointed that, following discussions with other groups, it became clear there was not sufficient support across the chamber to deliver that ambition.
“However Edinburgh faced a very real threat that, without our pressure on the Administration an inflation busting 6% increase from Greens and SNP could have passed. Their proposals had a spending programme that bore no relation to what Edinburgh wants or can afford.
“In these exceptional circumstances, we took the difficult but necessary decision to compromise. We gained the agreement of others to lower the planned increase to 4% – which we believe will be the lowest in Scotland.”
Green councillor Ross McKenzie said: “In administration across four budgets now, Labour have done nothing – absolutely nothing – to pursue the issues they were elected on and to represent the people they were formed to serve.
“What have they brought forward instead today? A blank page waiting to be filled with Tory and Lib Dem priorities.”
Convener of the Green Councillor group Cllr Kinross O’Neill said: “We’re disgusted that once again Labour have betrayed the people of Edinburgh and chosen to side with the tories to prop up their failing administration, rather than push for spending decisions which would benefit so many across the city.
“By rejecting proposals to increase funding for anti-poverty measures, for community cohesion projects, and for improving road safety for pedestrians, Labour have shown their true colours, and we are angry on behalf of the public who are crying out for ambitious leadership which recognises the struggles they are facing. Greens will continue to push for public money to be used for the benefit of the public, despite the best efforts of other parties who simply see Budget Day as an opportunity to trade political favours.”
On the budget for housing, Cllr Kinross-O’Neill continued: “Greens had clear, costed proposals to limit the rent increases for council tenants, saving individuals between £100 and £200 a year. These proposals were rejected by the administration, along with plans to increase the council’s ability to crackdown on rogue landlords and protect renters. This is despite hearing powerful testimony from tenants suffering due to the cost-of-living crisis and poor living standards. Labour even went so far as to refuse the very idea of having a report which looked at the possibility of reducing social rents, something they have failed to provide any rationale for.”
During the meeting, the Section 95 Officer of the Council – the proper officer responsible for discharging the financial duties of the council – made it clear that limiting the council tax increase to 4% could result in future cuts to council services. Despite this, Labour accepted this proposal.
The Green Group’s financial spokesperson, Cllr Alex Staniforth, responded:”In accepting future Tory cuts the Labour administration have set the council up for failure. They know they are facing electoral oblivion so don’t care that their imprudence, made clear by the Section 95 officer, will have to be tackled by future councils.”
