The average Perth and Kinross household could see its council tax bill rise by £400 over the next three years.
Councillors are being asked to support the region’s biggest ever increase as part of a new budget strategy up to 2028.
It would see council tax bills in Perth and Kinross rise by 10% next year.
That would be followed by a second 10% rise in 2026/27, then another 6% in 2027/2028.
The proposal would take the council tax on a Band D property from £1,403.69 to £1,544.06 next year.
That’s a rise of £11.70 a month for the average household.
And by the end of the three years, the Band D bill could rise to just over £1,800.
Perth and Kinross Council chief executive Thomas Glen says the additional funds would be focused on supporting the most vulnerable in the community.
“It will allow us to protect services which are targeted at those in greatest need,” he said.
“That includes older people, children in school with additional support needs and the 27,000 individuals experiencing poverty in Perth and Kinross.”
Finance officers say the hike would bring in another £5.4 million on top of the £4.4m they were banking on receiving from council tax next year alone.
Mr Glen insists the council will continue to make savings through re-designing services and slimming down its executive structure.
Perth and Kinross council tax proposal still up for debate
The proposals have been drawn up by the council’s chief finance officer Scott Walker.
They form part of a Medium Term Financial Plan, which has yet to be agreed by the full council.
All 40 Perth and Kinross councillors are due to debate the report when they meet next Wednesday.
No final decision on council tax levels will be made before the budget is set in February 2025.
But members will be asked to agree that planning for that budget should be based on an assumed council tax rise of 10% for 2025/26, and indicative rises of 10% for 2026/27 and 6% for 2027/28.
Council leader Grant Laing says this three-year strategy would put essential services on a more stable footing, allowing officers to plan budgets further in advance.
“What this proposal does do is clearly recognise the challenges facing the council,” he said.
“The increasing demands and rising costs of providing vital services for those most in need requires a bold solution.”
Council tax bombshell follows warnings on health and schools
Just under a fifth – 18% – of Perth and Kinross Council’s budget comes from council tax.
The remainder comes from the Scottish Government.
It’s not yet known what Perth and Kinross Council will receive from Holyrood next year.
That should become clearer when the Scottish Budget is presented to Parliament on December 4.
But Mr Walker’s report to council states: “All the signs indicate that the local government settlement in 2025/26 and beyond will continue to be challenging.”
The pressures on Perth and Kinross budgets have looked bleak in recent weeks.
On Tuesday, The Courier reported that Perth and Kinross education budget is facing a £3.4m black hole.
This could lead to job losses among additional support needs staff.
In August, health and social care chiefs warned they were facing an £8m overspend on the current year’s budget.
Rise proposal follows years of stagnation
Council tax rates have been frozen in Perth and Kinross for 12 of the last 18 years, including last year when they were frozen nationally.
The previous year’s 3.9% increase in Perth and Kinross was the lowest in mainland Scotland.
Councillors agreed earlier this year that 1% of all future council tax rises would go to the capital budget.
Next Wednesday’s report also proposes increasing this ring-fenced funding to 1.25%
Conversation