Thursday February 19th 2026
Scottish Borders Council headquarters
Written by Local Democracy Reporter, Paul Kelly
A Council Tax hike of 8.5 per cent for the Borders was agreed today as councillors rejected a bid for a proposed local ‘tourism tax’.
At a meeting of Scottish Borders Council a majority of members endorsed a more than twice the rate of inflation rise in the levy.
The 2026/27 bills will leave average Band D householders paying an additional £2.44 every week.
The Conservative-led council argued that the rise was required to preserve frontline services.
Although the Scottish government’s annual revenue funding settlement of £315m is an increase from the current year’s £292m, SBC still has to find more than £8m of savings during 2026/27 to balance its books.
The moves follows a ten per cent rise in Council Tax in 2025/26, following an tax increase freeze in the previous financial year.
In recent years there has been cross-party support over the endorsement of the budget.
But at today’s meeting the SNP opposition proposed an amendment, which included a seven per cent Council Tax rise, the potential introduction of a ‘modest’ visitor levy and a massive 350 per cent rise in the Council Tax levy on long-term empty homes and second homes – a move estimated to generate an additional £1.2m.
The amendment was described as “a more proportionate, balanced and fiscally responsible approach”.
It was a move dismissed as a “clumsy piece of electioneering” ahead of the forthcoming Scottish Elections by Independent councillor Robin Tatler.
The motion in support of a 8.5 per cent increase and against the alternative motion was passed by 23 votes to eight with one abstention.
Further cost-cutting measures include not filling about 30 current vacancies across departments and shedding more jobs as it attempts to save £1.4m from a redesign of the council’s Care at Home service.
Additionally, 26 positions are to go from its customer advice and business administration department over two years.
Other cost-cutting and money-generating plans include taking the most expensive school transport contracts in-house, above inflation increases in fees and charges, and reducing the number of out-of-area care placements for people with complex needs.
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