Council tax rise and new tourist tax both on the cards for Stirling

A tourist tax covering the entire Stirling Council area could bring in up to £7.5 million.

By Isla Glen

December 12 2024, 3:34pm

Stirling Castle is a popular destination for tourists. Image: Eve Conroy/DC Thomson

Council tax could rise for Stirling residents next year.

At a full meeting of Stirling Council on December 12, councillors approved the council’s Medium Term Financial Strategy for 2025-2030.

This essentially outlines how Stirling Council will ensure it has the resources to deliver what it must.

As part of this, an increase in council tax for 2025-2026 is possible.

Rises of 7.5%, 10% and 12.5% that would bring in £4.5 million, £6 million and £7.5 million respectively will all be considered by councillors at a later date.

For example, council tax band D is set at £1,481.50 for 2024-25.

If a rise is agreed, the annual increase would be £111 for 7.5%, £148 for 10%, and £185 for 12.5% per household.

A table explaining how much council tax would rise per band, if approved. Image: Stirling Council

The Scottish Government announced a council tax freeze for 2024-25.

Grant funding was issued to local authorities which opted not to implement a change.

Stirling Council received £2.923 million – the equivalent of a 4.9% increase in council tax.

However, the Scottish Government’s recent budget stipulated there would be no council tax freeze for 2025-2026.

Council tax represents 19% of Stirling Council’s income.

The Medium Term Financial Strategy for 2025-2030 report states that an increase in council tax would “improve the council’s financial sustainability at a time of significant cost and inflationary pressures”.

The final decision on raising council tax will be made by councillors at a later date.

It is hoped that this measure, alongside others, would help to plug a local budget gap of £51 million between 2025 and 2030.

Tourist tax expected in June 2027

Stirling Council also plans to introduce a tourist tax in the city and surrounding area, including the Loch Lomond and Trossachs National Park.

Local authorities were given the power to apply a visitor levy by the Scottish Government earlier this year.

The scheme would charge a percentage rate on overnight accommodation for holidaymakers.

The rate charged may vary by trip purpose or by area, but not by accommodation type.

The Wallace Monument is a popular local attraction. Image: Eve Conroy/DC Thomson

The council will be able to specify a maximum number of nights for applying the levy.

During the December 12 meeting, officials agreed to a draft plan for a tourist tax and a consultation on implementing the scheme.

If the tax were to be implemented, it is predicted it would bring in between £5 million and £7.5 million at 5%, or £1.5 million to £2.3 million at 1%.

A plan will go before Stirling Council in December 2025 for approval.

Then, should councillors back the scheme, the target start date would be June 2027.

Some councillors raised concerns that the timescale for implementing the tax was too long during a time of severe financial pressures, but agreed to go ahead with the plan.

Was a new leader of Stirling Council chosen?

It was expected that a new council leader would be appointed during the meeting, following the unexpected death of Margaret Brisley earlier in the year.