Council tax in Perth and Kinross will increase by 8.9% after councillors approved the rise during the local authority’s annual budget meeting.
The decision means households in a Band D property will pay £1,673.84 per year from April 2026, compared with £1,537.04 previously.
The budget also includes a £15 million investment programme aimed at improving local roads, bridges and pavements across the region.
Eric Drysdale, leader of the Perth and Kinross Council and a member of the Scottish National Party (SNP), said the authority faced unprecedented financial challenges.
He told councillors the current budget cycle was “one of the most challenging” the council had ever faced, adding that financial pressures were “the highest they have ever been”.
Drysdale explained that while a 9.5% increase had initially been proposed, the final figure had been reduced.
“Last year, we set a provisional rise of 9.5% for 2026/27. Today, we can confirm that we are instead putting forward an 8.9% increase.”
He added the rise was necessary to protect essential services.
“Lower than planned, and only achievable because we have scrutinised every line of spending and targeted funding where it matters most.”
Drysdale acknowledged the rise would be difficult for residents but argued it was unavoidable.
“Without it, we would need to make further significant reductions to services people rely on every day.”
A key part of the budget is a £15 million infrastructure investment package aimed at repairing roads, bridges and pavements.
Drysdale described it as “the largest ever level of investment this council has made”.
The council approved the budget by 22 votes to 13, with five abstentions.
The SNP administration, Liberal Democrat councillors and Independent councillor Grant Laing supported the proposal. Conservative councillors backed an alternative budget which included a smaller 6.95% council tax rise.
Alasdair Bailey, the council’s only Labour representative, criticised the focus on road spending.
He said the SNP had “finally” offered “vision, clarity and purpose” in the budget but argued the administration had chosen to prioritise infrastructure over housing and social needs.
“£15m could build up to 100 new housing units in our area. We’d collect rent on those and could then build more houses.
“Instead, we’re borrowing money and putting it into potholes.”
Meanwhile, Conservative group leader John Duff criticised the scale of the tax rise.
“The SNP budget is one of tax and spend. A massive 8.9% on the council tax after a 9.5% rise last year.”
Elsewhere in Scotland, councils are also increasing local tax levels as they respond to growing financial pressures.
Angus councillors approved a 9.38% council tax rise earlier this week, while Dundee and Falkirk are expected to announce their budget decisions later.