Households in Midlothian are facing a proposed 9% council tax increase as the local authority seeks to close an £11 million budget gap for the coming financial year.
Councillors will be asked to approve the rise at a meeting next week, just one year after a 10% increase was introduced. If agreed, the move would generate an estimated £6.6 million in additional revenue.
According to a report presented to elected members, the council faces a £10.9 million funding shortfall without the proposed increase.
Officials state that alternative savings and fee increases have already been exhausted, leaving council tax as the primary remaining mechanism to balance the books.
The report says: “The budget gap, even after taking measures to reduce recurring costs and increase fees and charges, leaves council tax as the only recurring option remaining to balance budgets other than introduction of some very challenging savings options.”
Under the current proposals, the remaining shortfall of more than £4 million would be covered by drawing on the council’s reserves fund.
Residents have also been warned that further rises may follow. Council officers predict an additional 8% increase next year, which would take the cumulative council tax rise in Midlothian to 27% over three years.
The local authority argues that it has already implemented cost-cutting measures and increased service charges where possible, and now has limited options left to secure financial stability.
The final decision will be taken by councillors at next week’s budget meeting, where the 9% council tax proposal will be formally debated and voted on.