The City of Edinburgh Council announced its 2026/27 budget on 26 February. The key policy announced was a 4 per cent rise in council tax, the area in which the council has the most control.
A 5 per cent was initially proposed, however this was reduced to 4 per cent after the minority Labour administration made concessions to ensure their budget was approved by the other parties in the council.
While a 4 per cent increase may feel steep, this rise is set to be the lowest in Scotland, with Aberdeenshire and Moray councils both having confirmed 10 per cent increases.
This is also less severe than last year’s measure, which saw council tax rise by 8 per cent in Edinburgh. However, the 4 percent increase is higher than the most recent inflation rate of 3 per cent.
Full-time students are usually exempt from council tax.
Similar to last year, the council identified education and social care as key areas of investment.
£86m has been pledged towards major extensions at Craigroyston and Queensferry High Schools, whilst £6m will go towards social care, with support being prioritised for vulnerable children and young people.
Mandy Watt — Scottish Labour Councillor, and Finance and Resources Convener for City of Edinburgh Council — noted the difficult circumstances the council has faced, saying:
“We remain the lowest funded council in Scotland, which poses a real challenge when setting our budget each year.”
The most appealing aspect of the council’s budget to students is likely the £1.6bn investment in affordable housing, including 2,500 homes for temporary accommodation.
£3m will also go towards homelessness prevention.
This comes just over two years since the council declared a housing emergency in Edinburgh, due to rising rent prices and a lack of supply of accommodation.
Other accommodation costs may still be rising for students, with bills such as water set to increase by 8.67 per cent this April, as previously announced by Scottish Water.
Thursday’s budget announcement also confirms that Edinburgh will become Scotland’s first city to implement a tourist tax.
The policy will come into force this July, charging visitors 5 per cent on overnight stays in hotels, bed and breakfasts, and self-catering accommodation.
This measure is expected to raise £50m each year for the City of Edinburgh Council.
“The City of Edinburgh Council building” by GB_1984 is licensed under CC BY 2.0.