Scottish council tax payers are bracing for potentially steep increases in their bills as local authority debt approaches £20 billion.
The SNP government’s council tax freeze for 2024/25 was not extended in its December Budget, leaving councillors until the end of February to decide on rates for the 2025/26 year.
Research by the Local Government Information Unit, as reported by The Times, indicates that about one in five local authorities are considering hikes of 10% or more, with most increases expected to fall between 5% and 12%.
This comes as Scottish councils’ total debt reached £19.8 billion in 2023/24, a 15.8% increase from the previous year.
Adding to the financial pressure on households, Scottish Water has announced a 9.9% increase in water bills from April 2025.
This follows an 8.8% rise last year and a 5% increase in 2023. The hike will result in homes in the lowest council tax band A being charged over £400 for their water supply and waste water collection for the first time.
Scottish Water CEO Alex Plant explained the rationale behind the increase: “People in Scotland are rightly proud of our water and maintaining our high standards means we need long-term sustainable investment.
“We’ve all seen – including in the last few days – how weather conditions in Scotland are becoming more extreme, and we are seeing more frequent periods of both drought and intense rainfall.
“This puts our current infrastructure under significant pressure, and, without increased investment, we risk reductions in service quality in the future.”
The organisation cited climate change as a key factor, pointing to the need for infrastructure improvements to manage both drought and intense rainfall periods.
Scottish Water serves more than 2.6 million households and 225,000 businesses across the country.
The impact of climate change on Scotland’s water resources was evident in recent seasons. The BBC reported that autumn 2024 was the fifth driest in 100 years, following a summer that set rainfall records in parts of the country.
As local authorities grapple with mounting debt and the need for increased investment in infrastructure, Scottish households face the prospect of significantly higher bills in the coming year.
