27th February 2026
For the 2026/27 budget, Highland Council is proposing a £61 million package of budget savings, income generation measures, and financial flexibilities to address a projected £46.7 million budget gap over the next three years.
The council's administration has focused on a strategy of increasing income and "entrepreneurial activity" rather than solely relying on service cuts.
Key elements of the proposed savings and income measures for 2026/27 include:
Council Tax Increases
Standard Increase: A proposed 7% rise in Council Tax. Of this, 5% is allocated to support core Council services, while the remaining 2% is ring-fenced for the Highland Investment Plan (focused on roads and schools).
Second & Empty Homes: Significant increases for non-primary residences. Second homes will be charged at 300% of the standard rate in 2026/27, and long-term empty properties will be charged at 250%.
Increased Fees and Charges
The budget includes a 3.8% increase across various service charges, including:
School meals.
Public toilet access.
Burials, cremations, headstones, and the sale of lairs.
Parking permits.
Efficiency and Income Generation
Invest-to-Save Projects: Initiatives focused on energy efficiency and utility cost reductions.
Entrepreneurial Activity: Expanding council-run services to generate profit, such as the council-run bus service and visitor attractions like The Storr on Skye.
Social Housing Rents: A tentatively agreed 8% increase in social housing rents to manage growing housing-related debt.
The formal consideration of these proposals is scheduled for a Special Council meeting on 5 March 2026.