East Lothian Council Approves Double-Digit Council Tax Increase

East Lothian Council has made history as the first local authority in Scotland to approve a double-digit council tax increase. The decision comes as the Scottish National Party (SNP) government’s flagship council tax freeze is set to end in April. This significant move reflects the growing financial pressures faced by local authorities amidst rising population numbers, economic challenges, and increasing demands on public services.

A Necessary Measure to Sustain Essential Services

The 10% council tax increase, proposed by the Labour-led administration, was passed with cross-party support, securing 17 votes in favor and four against during the 2025-26 budget meeting. Councillor Norman Hampshire, the leader of East Lothian Council, emphasized that the rise was essential to maintain critical services, particularly for vulnerable residents and to ensure children receive the best possible start in life. He highlighted that the council’s growth has intensified pressure on all departments, making the increase unavoidable.

Breaking Down the Council Tax Increase

The new council tax rates for 2025-26 will impact residents across all property bands. The weekly and monthly increases are as follows:

• Band A: £1.84 weekly / £7.98 monthly (2024-25 rate: £957.08)
• Band B: £2.15 weekly / £9.31 monthly (2024-25 rate: £1,116.59)
• Band C: £2.45 weekly / £10.63 monthly (2024-25 rate: £1,276.10)
• Band D: £2.76 weekly / £11.96 monthly (2024-25 rate: £1,435.62)
• Band E: £3.63 weekly / £15.72 monthly (2024-25 rate: £1,886.24)
• Band F: £4.49 weekly / £19.44 monthly (2024-25 rate: £2,332.88)
• Band G: £5.41 weekly / £23.43 monthly (2024-25 rate: £2,811.42)
• Band H: £6.76 weekly / £29.31 monthly (2024-25 rate: £3,517.26)

Additionally, rents for council housing will rise by 6.5%. The council has also allocated over £211 million for infrastructure improvements over the next five years, with £1 million dedicated to road maintenance and another £1 million for modernizing council houses.

Scotland’s Council Tax Freeze Comes to an End

The SNP government’s council tax freeze, which has been in place for several years, will no longer apply starting in April. Finance Secretary Shona Robison revealed that the Scottish government will increase funding for local authorities by more than £1 billion in the 2025-26 draft budget, bringing the total to over £15 billion. While Robison acknowledged that local authorities have the autonomy to decide how to allocate these funds, she suggested that there should be “no reason for big increases” in council tax rates.

Reactions to the Tax Hike

The decision by East Lothian Council has sparkedmixed reactions. While the Labour-led administration and supporting councillors argue that the increase is necessary to safeguard essential services, critics have raised concerns about the burden it places on households, particularly during a time of economic uncertainty. The council’s move may set a precedent for other local authorities in Scotland, as they grapple with similar financial challenges.

The Broader Implications for Scotland

As East Lothian Council takes this significant step, the decision underscores the growing financial strain on local governments across Scotland. The end of the council tax freeze and the Scottish government’s increased funding for local authorities signal a shift in how public services will be financed in the future. While the investment in infrastructure and housing is welcomed, the balancing act between maintaining services and easing the financial burden on residents remains a critical challenge for policymakers.

In conclusion, East Lothian Council’s 10% council tax increase represents a landmark moment in Scotland’s local governance. It reflects the difficult decisions councils must make to address financial pressures while striving to protect vulnerable populations and invest in the future. As the country navigates this new era of council tax policy, the impact on residents and the effectiveness of these measures will be closely watched.