Budget delivers for care, communities and the local economy

The budget responds directly to the rising cost of delivering services, increasing pressure on care provision, and the challenges created by delivering services across a large geography.

Councillors approved an 8.9% Council Tax increase, lower than the 9.5% originally indicated when the provisional 2026/27 budget was set last February. This reduction has been achieved through detailed scrutiny of spending and by focusing investment where it will have the greatest impact. However, the rising costs of delivery and demand for social care mean that a rise of this level was necessary in order to protect the most vulnerable without more significant levels of budget cuts to other services.

Council Leader, Councillor Eric Drysdale, said: "The Council Tax increase is largely driven by the pressure on health and social care, which is itself a result of our twin challenges of an ageing population and the additional costs of delivering care across a geographically dispersed area. More needs to be done nationally to recognise the rural premium - how much more it costs to deliver services in an authority like ours with large rural patches. I've already raised with COSLA the need for this to be addressed, but we have to set this year's budget with the hand that we've been dealt.

"That means looking at potential longer-term solutions, which is why we've included funding to undertake a feasibility study on what a care village approach might look like in Perth and Kinross. I'm keen to explore opportunities to create communities for older people which recognise the different levels of care and support people need as they live increasingly longer, and which can be delivered in different parts of Perth and Kinross based around existing facilities and places."

The budget also delivers on longer-term funding for roads, pavements and bridges with an additional £15 million over three years - the largest single investment of its kind ever made by the Council. This comes alongside doubling the resources for gully cleaning and ditch maintenance and investing in a Greenspace Enhancement Squad to help improve public spaces by supporting planting and other environmental improvements. This comes alongside the rejection of proposed cuts to street cleaning and a freeze on the garden waste permit charge for 2027/28 and 2028/29.

To support economic activity and revitalise Perth city centre, Councillors also approved £200,000 for a new City Centre Improvement Taskforce, which will deliver visible enhancements over the spring and summer. If this pilot project proves successful it could be rolled out to other towns in future years. 

Councillor Drysdale explained: "We've listened carefully to what residents have fed back to us in the budget survey and through the conversations we have with them everyday. While protecting services for the most vulnerable is a high priority, residents are also calling for more visible action on the ground and that's what this budget delivers. By making more money available for roads and pavement maintenance and improvement and helping plan for bridge work over the next three years we can allow for more work to be planned and delivered over that time whilst also providing the flexibility to carry out more of the fixes needed by roads and pavements which are impacted by bad weather, for example.

"Greenspace and city centre improvements are also things residents have asked for. We share a wish to ensure our city centre and public spaces are welcoming to residents and businesses, and create an environment that more businesses will be attracted to invest in."

Business investment is also a driver for accelerating work to develop the Eco-Innovation Park at Perth West for new and growing businesses, adding £750,000 for the Adapt Your Property initiative to help bring vacant buildings back into use, and reduce parking charges in multi-storey car parks to encourage more use of these and long-stay car parks and free up short stay spaces.

During the Council meeting, Councillor Drysdale also told the Chamber that Scottish Ministers have approved the relocation of two government departments to Pullar House, increasing the number of public sector agencies represented in Council-owned building. He said: "This means more than 100 additional staff who will be working in Perth city centre. A significant boost to helping increase regular footfall in Perth city, which I am sure will be greatly welcomed by retailers."

Councillor Drysdale also recognised the need to work closely with local businesses. He explained: "That's why I am calling for a business and economic summit to explore opportunities to further improve how the private and public sectors collaborate and I am very pleased that both Aviva and SSE have already indicated that their keenness to be involved, and with the support of these major companies I expect more businesses will be interested in getting on board."

Other inclusions in the budget approved today include:

• £1.3 million for anti-poverty and financial insecurity, rejecting cuts which had been proposed for Citizens Advice Bureau and employability initiatives and adding additional funding for households facing financial insecurity, and support to The Big Hoose and Buttons and Bows projects locally.
• £1.1 million to support local communities to deliver projects to tackle issues in their areas, including improving biodiversity and countering the effects of poverty and the cost of living.
• £306,000 for education and learning to support care-experienced and vulnerable young people, develop outdoor learning spaces for children with more complex additional support needs, and to accelerate repairs and maintenance in rural primary schools.
• £347,000 to support services for our most vulnerable people including RASAC, Women's Aid, The Neuk and community mental health support groups.
• £225,000 to maintain community halls and current opening hours for rural libraries, museums and the art gallery.
• £150,000 to establish a fund to provide grants and advice to owners of properties at risk of flooding in areas not covered by a Flood Risk Management Plan.
• £150,000 for inspections, repairs and maintenance of play park facilities and £100,000 to refurbish the Auchterarder multi-use games area (MUGA).

Councillor Drysdale said: "Residents across Perth and Kinross expect us to take responsible decisions that protect essential services and plan ahead for the future. This is a budget grounded in reality, shaped by what people have told us, and focused on meeting the needs of our communities. Our investment in care recognises the scale of the challenge we face, while our commitment to the public spaces and our road network reflects what matters most to households and businesses. This budget puts fairness, sustainability and community at its heart."