Scottish Councils Face 10% Tax Hike as £81m Budget Crisis Looms
A sharp warning tonight from north-east Scotland, where two councils say painful choices are now unavoidable and households could soon be paying significantly more in council tax.
In Aberdeenshire and neighbouring Moray, leaders are preparing to approve 10% increases in council tax as they scramble to close growing budget gaps. For families already stretched by higher living costs, this is not a small rise. In Aberdeenshire, a typical band D property would see bills climb from £1,532 to £1,686. In Moray, the same band would rise to £1,731. And officials are warning this may not be the end of the increases.
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At the heart of this is a widening financial shortfall. Aberdeenshire Council says it is facing an £11.9 million gap over the next year and potentially £81 million by the end of the decade if nothing changes. Moray Council has already approved more than £4 million in savings, but leaders say even a 1% change in council tax would require hundreds of thousands of pounds in additional cuts.
So where is the pressure coming from?
Demographics are shifting fast. The region’s population is ageing. Officials expect a 28% increase in over-65s by 2030 and a sharp rise in over-75s by 2040. That means growing demand for health and social care, while school rolls are falling. Costs are rising, expectations are changing and councils say funding from central government is not keeping pace.
Last year, Aberdeenshire set a budget of £802 million, with £26 million in savings and a 10% tax rise already built in. Now, leaders say services must be redesigned to survive. Cuts under discussion include reduced school cleaning, less grounds maintenance and scaling back certain support services. Reserves are also being used to plug gaps, but that is not a long-term fix.
Health and social care is one of the biggest pressure points. The local partnership had faced a £24 million gap, now reduced to £11 million after months of difficult restructuring. But that progress has come with controversial changes and public concern.
The message from council leaders is clear. This is about reshaping services to be “fit for the future.” But for residents, it raises a deeper question. How much more can local taxpayers shoulder and what will local services look like in five or ten years?
These budget meetings next week will shape not just bills, but the future of public services across the north-east of Scotland.
Stay with us for continuing coverage as these crucial decisions unfold and for analysis on what it means for communities across the UK and beyond.
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