Perth and Kinross to propose 9.5% council tax hike at budget meeting

Perth and Kinross Council’s SNP administration will propose a 9.5% council tax increase at Wednesday’s crucial budget meeting.

Council leader Grant Laing has cited changes to the National Insurance and the rising cost of health and social care as two of the council’s biggest financial burdens.

The SNP group has also pledged £1m to Culture Perth and Kinross to keep libraries open for the next two years and work with campaign groups to find a sustainable way forward.

Elected members will meet on Wednesday, February 26 to set PKC’s 2025/25 budget.

Council officers are recommending a council tax increase of 10%, which was part of a three-year council tax strategy voted through by councillors in December 2024.

The SNP administration is now proposing an increase of 9.5% in 2025/26, largely to meet the increasing costs related to National Insurance and protecting social care services.

Cllr Laing said: “9.5% is our proposal. The UK Government’s National Insurance changes are going to cost us about £3m more out of the blue.”

“There’s that and we’re having to put £6.7m into social care so if you look at that and the National Insurance – that’s your whole council tax rise gone on these two things. If it wasn’t for the National Insurance thing we might just have been seven per cent.”

The SNP leader said his group was seeking to “strike a balance” and a proposal will be tabled to put additional resource into Welfare Rights “to help people who find it difficult to pay their council tax and make sure they’re getting all their benefits”.

The proposal to close five rural libraries – in Alyth, Auchterarder, Birnam, Comrie and Scone – has sparked widespread criticism. Campaign groups against the closures – in each of the affected communities – have amassed over 5,000 signatures to petitions which will be presented to councillors on Wednesday. Council leader Grant Laing has met with members of the collective Save Our Rural Libraries campaign group and believes transforming the libraries into hubs could be the way forward.

Council leader Grant Laing said: “We’re putting £1m over two years to Culture Perth and Kinross – £500,000 in 2025/26 and £500,000 in 2026/27 – that means Culture Perth and Kinross can continue services as is.

“I’ve spoken to the library groups and some of the leaders. This funding will be contingent on them working with CPK and council officers over the next two years to find a way of delivering a service that is sustainable – working round buildings to make them more of a hub than just a library.”

Cllr Laing said he has sought to draw on ideas from across the political divide “to get the best for the people of Perth and Kinross”.

The Strathtay ward councillors said: “Looking at the budget as a whole, we’re listening to people and we’re trying to empower communities and bring communities together to find the most sustainable way of providing services in the difficult financial situation.

“I’ve been speaking to all the groups and I’ve been listening to them. Although it comes as an administration budget, there have been ideas from all sides of the chamber. Because we should be working together to do the best with the money we’ve got to get the best for the people of Perth and Kinross.

“Nobody has a monopoly on good ideas or wisdom.”

Conservative Mid Scotland and Fife MSPs have welcomed the SNP’s U-turn on libraries.

Murdo Fraser said: “We very much welcome this U-turn from Perth and Kinross Council. It is good to see all the campaigning from local communities has forced this U-turn from the SNP-run council in Perth and Kinross.”

Liz Smith added: “I am delighted that Perth and Kinross Council has decided to provide much-needed funding to save these libraries. I know from speaking to some of the campaigners just how angry they felt about the proposed closure of the five rural libraries, so this move will be warmly welcomed by many residents.

“However, it must be remembered that it has taken months of campaigning by the community groups, which Scottish Conservative colleagues and I backed, to persuade the council to think again on this matter.”

The council’s Lib Dem group will also table a budget to protect libraries.

Lib Dem group leader Peter Barrett said: “We’ve listened to communities and will provide substantial funding to continue Library service provision and maintain opening hours of Perth Museum and Art Gallery.”

The Lib Dems’ budget proposals will focus on measures to tackle poverty.

Cllr Barrett said: “The thrust of our budget is to tackle poverty, protect the most vulnerable in our community. There is a laser-like focus on empowerment to enable local communities to design and deliver the solutions to the challenges in their areas.”