Perth and Kinross council tax payers are facing a rise of 10% on their bills next year – then 10% and 6% in the years after that.
The provisional increases were approved by councillors on Wednesday, as part of a new medium term financial plan.
The council tax hike could see Band D households paying another £400 a year by 2027/28.
It would be the biggest rise in Perth and Kinross Council history.
But finance chiefs say it could more than double the council’s income from council tax, which makes up about a fifth of its budget.
That would mean an additional £5.4m next year alone, on top of the £4.4m it is already banking on from council tax.
The funds will be targeted at health and social care, children with additional support needs and people living in poverty.
Council tax shift could end ‘death of 1,000 cuts’ to Perth and Kinross services
Council leader Grant Laing said the authority had to take “horrendous decisions” last February in order to achieve a balanced budget.
However, soaring costs in areas such as health and social care means that balance no longer exists.
And he warned many more millions of pounds would have to be cut from services next February if colleagues failed to act.
Mr Laing said a three-year council tax strategy would give managers a clearer picture of the money that will be available to them in the future, bringing greater stability to essential services.
“Agreeing to this strategy means we can end the annual cycle of death by 1,000 cuts,” he said.
“In past years we have had weeks of uncertainty. Our communities, staff and suppliers have spent the winter worrying about future levels of council spending and where the axe is likely to fall.
“This strategy can end that worry and uncertainty.”
The full council voted by 22 votes to 15 to support the move.
Council tax plans follow 12 years of freezes
The council tax rises are purely indicative at this stage.
Councillors will still have to approve them each spring as part of the annual budget setting process.
It’s possible they could be lower, if the Scottish Government is more generous in its funding for councils.
Chief finance officer Scott Walker said he should have a clearer picture from Holyrood in the coming weeks.
But by setting out potential council tax income as far ahead as 2027/28, he said Perth and Kinross can avoid “the annual round of salami slicing” which precedes the budget vote each year.
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.
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