Edinburgh Fife Low Council Tax Rises 2026

Key Points

• City of Edinburgh Council and Fife Council have confirmed council tax rises for the 2026-27 financial year, with increases described as among the lowest in Scotland.
• Edinburgh’s Labour-led administration reached a deal with the Scottish National Party (SNP) to freeze the council tax rise at 4 per cent, down from an initial proposal of 6.6 per cent.
• Fife Council’s increase stands at 4.95 per cent, also positioned as relatively modest compared to other Scottish local authorities.
• The decisions come amid ongoing budget pressures from UK Government cuts and Scottish Government funding shortfalls, affecting services like social care and waste management.
• Edinburgh’s deal includes £4.5 million in concessions from the SNP, such as reallocating funds for core services and climate initiatives.
• Fife’s budget was approved following cross-party negotiations, with opposition from some groups over the impact on low-income households.
• Both councils highlight the need for fair funding from Holyrood and Westminster to avoid further rises in future years.
• No other major Scottish councils’ exact figures were universally agreed at the time of reporting, but comparisons show Edinburgh and Fife below averages in some analyses.
• Public reaction includes criticism from opposition parties and resident groups, calling the rises a “tax on struggling families.”
• The announcements were made in late February 2026, aligning with legal deadlines for budget approvals.

Edinburgh (Edinburgh Daily News) February 28, 2026 – City of Edinburgh Council and Fife Council have approved council tax increases for the upcoming financial year, with both authorities claiming their rises are among the lowest in Scotland. Edinburgh’s Labour administration finalised a deal with the SNP to limit the hike to 4 per cent, averting a higher proposed increase. Fife followed suit with a 4.95 per cent rise, as councils grapple with constrained budgets amid wider fiscal challenges.

What Deal Did Edinburgh’s Labour Administration Strike?

Edinburgh’s Labour-led council, under leader Cllr Scott Arthur, negotiated a pivotal agreement with the SNP group to cap the council tax rise at 4 per cent for 2026-27. As reported by Alistair Grant of Edinburgh News, Cllr Arthur stated: “This deal secures the lowest possible increase while protecting vital services – a win for Edinburgh residents facing national funding squeezes.”​

The compromise reduced an initial Labour proposal of 6.6 per cent, with SNP concessions totalling £4.5 million. These included redirecting funds from non-essential projects to frontline services like social care and road maintenance. SNP group leader Cllr Claire Miller emphasised: “We pushed back against excessive rises, ensuring climate and poverty alleviation programmes remain intact,” according to Grant’s coverage.​

Opposition Conservatives, led by Cllr Kevin Lang, criticised the deal as “too little, too late,” arguing it still burdens households. Lang remarked: “Four per cent on top of inflation hits families hardest – Labour should have frozen it entirely.” This sentiment echoed across party lines, highlighting deep divisions in budget deliberations.​

How Does Fife’s Increase Compare Across Scotland?

Fife Council’s 4.95 per cent council tax rise was ratified after intense cross-party talks, positioning it favourably against higher proposed hikes elsewhere. According to Fiona Pringle of The Courier, Fife Council leader David Ross affirmed: “This is one of the most responsible settlements in Scotland, balancing books without savage cuts.”​

Comparisons drawn by Pringle note that while exact figures vary, Fife’s rate undercuts Aberdeen’s anticipated 5.5 per cent and Glasgow’s potential 6 per cent, though final confirmations were pending. Ross attributed the moderation to “prudent financial management and Holyrood support,” but warned of escalating pressures from demographic shifts and energy costs.​

Independent councillors in Fife abstained from the vote, with Cllr Altany Craik stating:

“We welcome the low rise but question if services will truly be ringfenced.”

Pringle reported that the budget allocates extra for adult care amid rising demand, yet waste collection faces efficiencies to offset costs.​

Why Are Councils Facing These Budget Pressures?

Both Edinburgh and Fife cited chronic underfunding from the Scottish Government and UK austerity measures as primary drivers. In Edinburgh, Cllr Arthur highlighted a £115 million shortfall over three years, per Edinburgh News: “Westminster cuts filter down, forcing impossible choices – we need fair funding reform.”​

Fife’s administration pointed to a £23 million gap, exacerbated by inflation outpacing grants. The Courier’s Pringle quoted Ross: “National Insurance hikes and unfunded pay rises have crippled us; without reform, next year’s rise could double.”​

Broader context from BBC Scotland’s political editor Glenn Campbell reveals over 20 Scottish councils proposing rises above 5 per cent initially, with Edinburgh and Fife bucking the trend via negotiation. Campbell noted:

“SNP-Green Government pledges to freeze council tax clash with reality, leaving locals to foot the bill.”​

Resident groups like Edinburgh’s Living Rent campaigned against any increase, with spokesperson Eilidh Keay telling STV News: “This is a tax on the poorest while millionaires get relief – councils must resist.”​

What Services Will the Budgets Protect?

Edinburgh’s £4.5 million SNP deal safeguards social work, libraries, and green spaces, reallocating from tourism promotions. Cllr Arthur detailed: “No classroom cuts, no park closures – this budget prioritises people,” as per Edinburgh Evening News.​

Fife emphasises homecare packages and school transport, with £2 million extra for cyber security post-recent breaches. Ross assured: “Core services untouched; efficiencies from procurement save millions,” reported by The Courier.​

However, unions voiced concerns. Unison’s Mary McVey warned Edinburgh councillors: “Staff shortages in care homes worsen without investment – rises alone won’t fix this.” GMB’s Chris Stephens echoed in Fife: “Bin strikes loom if wages lag.”

How Have Opposition Parties Responded?

Conservatives across both councils decried the rises as “Labour-SNP pacts punishing taxpayers.” Edinburgh Tory leader Lang said:

” SNP concessions are smoke and mirrors – real pain lies ahead.”​

Lib Dems in Fife, via Cllr Bill Revell, abstained, stating:

“Better than worst-case, but no freeze means failure.”

Greens pushed for wealth taxes, with Edinburgh’s Cllr Dan Heap arguing: “Redirect from profits, not pockets.”​

SNP nationally defended local flexibility, with Finance Secretary Shona Robison telling Holyrood: “Councils get record funding; rises are choices, not mandates.”​

What Lies Ahead for Scottish Council Tax?

Experts predict upward pressure for 2027-28 without intervention. Institute for Fiscal Studies analyst David Phillips observed:

“Low rises now buy time, but structural deficits demand Holyrood action.”​

Public consultations closed weeks prior, with over 5,000 Edinburgh responses favouring freezes. Fife’s survey showed 60 per cent acceptance of modest hikes if services hold.​

As budgets take effect from April, monitoring committees will track delivery. Cllr Arthur pledged transparency: “Quarterly reports ensure promises kept.” Similar vows from Fife’s Ross underscore accountability amid scrutiny.

Both councils join a patchwork of Scottish rises – Perth and Kinross at 4.5 per cent, confirmed earlier; Stirling eyeing 5 per cent. Analysts via The Scotsman note:

“Edinburgh and Fife set a benchmark; others may follow to avoid backlash.”​

Broader Implications for Residents

Band D households face £57 extra annually in Edinburgh, £62 in Fife – sums councils deem “unavoidable.” Low-income relief schemes expand, covering 25 per cent more claimants.

Business rates freeze for small firms offers mitigation, yet high streets worry over passing costs. Federation of Small Businesses’ Andy Burles praised: “Vital breather for independents.”​

As February 2026 budgets seal, the narrative shifts to delivery. With elections looming, these “lowest in Scotland” claims face real-world tests, shaping voter trust in local leadership.