Perth and Kinross councillors have voted in favour of a 9.5% council tax increase, with the SNP administration’s budget passing by 26 votes to 13, with one abstention.
The decision follows intense campaigning, particularly around library closures and leisure facilities, prompting the council to allocate an additional £1 million over the next two years to maintain current library and museum services.
A key issue in the budget discussions was the future of the PH2O leisure facility, with a final decision set for June.
The proposed facility includes an eight-lane 25m pool, a teaching pool with movable floors, a gym, studios, and an indoor play area. Campaigners have called for additional features, such as flumes, a kids’ water play park, and an ice rink.
Library closures were also a major concern, with campaigners pushing to save branches in Alyth, Auchterarder, Birnam, Comrie, and Scone. In response, the council has pledged £1 million to sustain these services while working with communities to develop long-term solutions.
The budget also includes a £6 million investment in public transport, with the council recently acquiring D&E Coaches to reduce school transport costs and improve local bus services. An additional £500,000 will go towards supporting community-based recycling schemes.
Council leader Grant Laing highlighted that increasing financial pressures have left the council with no choice but to raise taxes. He pointed to rising health and social care costs, with an extra £8 million allocated to these services.
Changes to National Insurance employer contributions, introduced by the UK government, will add £5.4 million in annual costs to the council.
Deputy leader Eric Drysdale emphasised the need for financial sustainability, citing increasing wage bills and pay claims exceeding inflation.
To support economic growth, the council is investing £450,000 in apprenticeship and training programmes, as well as £150,000 in rural employment initiatives. An additional £7 million will be injected into the Commercial Property Investment Programme, bringing the total to £9 million.
The SNP-led budget, which incorporated amendments from all political groups, was approved with support from SNP, Liberal Democrat, and Independent councillors.
The Conservative group, which had proposed a lower 8% council tax rise, opposed the increase, arguing that residents were already struggling with the cost of living crisis.
Labour councillor Alasdair Bailey abstained, criticising council tax as a regressive system that disproportionately affects lower-income households.
Conservative leader John Duff accused the SNP of burdening residents with unnecessary tax increases, contradicting statements from local SNP MSP and First Minister John Swinney, who had claimed such rises were avoidable.
Meanwhile, Independent councillor Dave Cuthbert described the 9.5% increase as reasonable, considering the financial challenges.
With this significant tax hike and multi-million-pound investments, the council aims to balance financial pressures while maintaining essential services. However, the debate over tax fairness and public spending is set to continue.
