5th March 2026
Today 5 March 2026 is budget day for Highland council to decide on the council tax for 2026/27. Finance are very tight and councillors have hard decision to take.
The debate is likely to centre on three big questions:
How much should council tax rise?
Where should savings fall?
Is the long-term investment plan worth the cost now?
Main budget proposals (2026-2029)
Council tax increase
7% rise in council tax proposed for 2026/27.
5% to help fund core council services.
2% to support the Highland Investment Plan, a long-term capital programme.
This would help offset rising costs and declining real-terms funding.
New investment in services
About £12.2 million of additional investment is proposed in priority areas, including:
Adult social care
Housing and tackling the housing shortage
Education and support for children and families
Roads and infrastructure maintenance
Workforce development in council services
The aim is to strengthen key services despite overall financial pressures.
Large savings and income-raising package
To close the council's projected £46.7 million funding gap over three years, the plan includes:
£61 million in combined savings, income generation and financial flexibilities.
Measures include redesigning services, efficiency changes, and new revenue sources.
Housing-related tax changes
Higher council tax on second homes and long-term empty properties is proposed.
Intended to encourage housing availability and raise revenue to address the region's housing challenges.
Long-term capital investment programme
The budget links to a £2.1 billion, 20-year investment plan.
Focus areas include:
Schools and education estate upgrades
Infrastructure improvements
community services and facilities.
Context behind the proposals
The council faces significant financial pressure due to rising costs and demand for services.
It previously estimated budget gaps of around £16 million per year in the late 2020s if changes are not made.
The region also has high infrastructure costs, including thousands of miles of roads and a large school estate relative to population.
In short:
The proposals combine a council tax rise, targeted service investment, and significant savings measures to balance the budget while maintaining key services and funding long-term infrastructure improvements.
the agenda is already published and if there are no challenges to the information in the paper then it will all go through.
The agenda is
Medium Term Financial Plan 2026/27 to 2028/29, Revenue Budget and Council Tax 2026/27
Plana Ionmhasail Meadhan-ùine 2026/27 gu 2028/29 agus Buidseat Teachd-a-steach agus Cìs Comhairle 2026/27
There is circulated Report No. HC/01/26 by the Chief Officer - Corporate Finance (Section 95 Officer).
The Council is asked to:-
i. note the budget context, information, assumptions and risks, as set out within the report and provided by the Section 95 Officer;
ii. note reports over the past year from Audit Scotland and the Accounts Commission, as referenced in the report, providing positive commentary on the Council's financial management and other financial arrangements;
iii. note the additional processes, actions and controls being introduced to further enhance and improve the Council's financial management and budgetary control arrangements;
iv. agree the three-year package of new, additional and revised budget saving, income generation and other saving proposals put forward by the Council Administration as set out at Annex 5a and 5b to the report;
v. agree the growth and investment funding proposed by the Council Administration as set out on Annex 4 to the report;
vi. agree the package of budget pressures and new burdens as set out on Annex 2 to the report;
vii. agree to the Partner Funding arrangements relating to NHS Highland and High Life Highland as set out in section 9 of the report;
viii. agree that in relation to Adult Social Care for the 2025/26 financial year, that an additional up to £5.0m of additional one-off funding, in recognition of cost pressures and overspend, is provided to NHS Highland, to be funded from reserves;
ix. note the updated position relating to reserves and taking account of the budget proposals and recommended earmarking and re-purposing as set within the report (Annex 6);
x. agree in relation to Council Tax, a 7% increase for 2026/27, represented by a 5% core increase to balance the budget for the year plus 2% earmarked for capital investment through the Highland Investment Plan, with details of the resulting Council Tax as shown in Annex 7a to the report;
xi. agree that in relation to Council Tax on Second Homes and Long-term Empty Properties, the Council will utilise the flexibility to be introduced via legislation and increase premium charges on Second Homes and Long-term Empty properties as set out in paragraph 18.5 and Annex 7b to the report;
xii. note the indicative assumptions on Council Tax for 2027/28 and 2028/29 as per Annex 7a to the report, with these subject to future review and formal decision as part of annual budget setting; and
xiii. agree the proposed Revenue Budget for 2026/27 as set out within the report and on Annex 3 to the report.
The full papers can be found HERE
The meeting starts at 9.35am 5 March 2026
View the webcast HERE