Council sets balanced budget and 9% Council Tax rise
Midlothian Council has set a balanced budget of £340.7million for 2026/27, alongside a 9% increase in Council Tax to help protect essential services at a time of rising costs and increasing demand.
Mix of measures
To balance the budget, the council will use a mix of measures, including £4.093 million from earmarked reserves, increased income from fees and charges, projects transforming how the council works and the planned rise in Council Tax.
Careful consideration
Council Leader Councillor Kelly Parry said: “The recommendation to set Council Tax at 9% is not a figure councillors choose, or arrive at, casually, randomly or without thought and consideration, it is a balancing figure to make up the shortfall in our funding. Councillors have a legal obligation to set annual budgets, and the process is we take our forecast budget, which is the cost of the services we need to deliver, and compare that with the available funds that we have to do this. To reduce Council Tax we need more income from other sources because Council Tax only makes up for about 24% of income for the council.
“But is important to be transparent about what this means in terms of people’s pockets, so to be clear the new Band D figure for Midlothian, if agreed will be £1816.16 pa, which is the equivalent of £12.50 extra per month, or £2.88 per week.”
Support for foster carers
Foster care fees will rise by 3.5% and will automatically increase each year in line with national pay. Payments to adopters will also rise in line with the Scottish Recommended Allowance, and carers will continue to receive holiday, birthday and Christmas payments.
Transforming services
The council will continue to roll out its Transformation Blueprint, a major programme designed to save money, modernise services and generate new income. Key projects include:
- Expanding digital services to improve customer access
- Exploring options to build on the community bus service to complement established commercial routes
- Building on developing plans for one-stop shops in Gorebridge and Dalkeith
- Reviewing how transport for children and adults is provided
- Modernising council buildings and exploring more efficient use of assets
- Developing commercial opportunities at Vogrie Country Park and Midlothian Snowsports Centre
- Reviewing parking, trade waste and out‑of‑school childcare services
- Expanding support for children’s services
More to come
These initiatives are expected to save £450,000 in 2026/27, with further savings anticipated later years.
Health and social care increase
The council also approved a £75.122 million health and social care funding package for the Midlothian Integration Joint Board, including money to support young people with disabilities moving into adult services. This is an increase of more than £3.6million on the previous year.
Listened to local people
Midlothian Council Leader, Councillor Kelly Parry, said: “We’ve listened closely to local people and acted on what you told us matters most to you from the last budget consultation. You asked us to protect vital services like libraries — and we have. You told us how important investment in leisure is — and our upgraded gyms in Newtongrange, Lasswade and Penicuik now rival anything in the private sector. We’re also exploring ways to expand the community bus service because we know how valued it is across our communities.
Challenges ahead
“At the same time, we’re pushing ahead with major transformation projects to make services more modern, efficient and sustainable. However, with a projected budget gap of £11.788 million by 2028/29 and one of the fastest‑growing populations in Scotland, balancing the books will only become more challenging in the years ahead.
Protecting essential services
“Despite these pressures, this budget protects essential services and invests in the people who rely on them most. Through careful financial planning and a clear programme of modernisation, we are doing everything we can to support children, families and vulnerable residents while doing our best to keep the council on a sustainable, forward‑looking path.”
Read 8.11 for the full report at the bottom of the page