Proposal to raise council tax by five per cent in Edinburgh

According to Edinburgh council’s draft budget plans, council tax bills could increase by five per cent from April 2026.

The rise would mean a property in council tax band B would now have to pay £1094.46 per year. This excludes water and sewerage charges.

The cost for a band H property, the highest band of council tax, would increase to £4022.13 from £3,830.60.

The council has proposed the rise to fund a £1.6bn programme to tackle the city’s housing crisis.

This comes after council tax rose by eight per cent in Edinburgh last year.

The proposed figure could change as councillors are set to vote on amendments to the draft budget at a meeting next week.

Earlier this month, the finance convener of the city’s Labour administration said other local authority fees and charges would be frozen as much as possible.

Mandy Watts told the BBC the council recognised residents had “real concerns” about living costs.

The effect this increase may have on students sharing flats with non-students could be significant.

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Andrew, a final year ancient history student at The University of Edinburgh, who lives with other non-students told The Tab Edinburgh: “I am really concerned about this increase.

“Although five per cent doesn’t seem like much, this could impact students like me who are already struggling to meet council tax costs. Despite the discount, I have to work a part time job and use my student loan to cover the costs council tax which leaves me very little money at the end of the month.

“An increase would mean having to increase my hours at work and take valuable time away from my studies.”

Students that live with non-students currently receive a 25 per cent discount on council tax.

However, the increase still has potential to place significant financial pressures on students living off student loans and part-time jobs.

Council tax for properties in EH9, EH8 and EH1 usually fall between bands B to D. These are some of the city’s most heavily student populated post codes.

If council tax is raised by five per cent, this means students living with non-students could go from paying an average of £1,042 per year to around £1,100.

A decision will be made by Edinburgh City Council on February 26th