Thousands of new homes are set to be delivered in Edinburgh over the next five years thanks to an additional £1.6 billion agreed by councillors today.
The Council’s Budget, passed on 26 February, includes a record spend on providing affordable housing alongside significant investment in frontline services, children and education.
Ending poverty and protecting vulnerable residents is at the heart of the spending plans, which prioritise homelessness prevention, sustaining Edinburgh’s third sector partnerships and investing significant sums in education and health and social care services.
Thanks to a change in loan financing arrangements, officers have been able to address budgetary challenges and preserve frontline services while enabling members to limit Edinburgh’s Council Tax rise to 4% - set to be the lowest increase across Scottish councils this year. Councillors also agreed a freeze on most fees and charges for the next 12 months, including parking permit and pay and display charges.
Alongside today’s decision, the Edinburgh Visitor Levy scheme, the first set of spend programmes of which were agreed earlier this month, is set to generate an additional up to £29 million this financial year to help sustain and promote Edinburgh's status as one of the world’s favourite visitor destinations.
Council Leader Jane Meagher said:
I’m proud that we’ve once again delivered a balanced budget that focuses on meeting the needs of Edinburgh’s residents. It is a budget that reinforces our commitment to tackling poverty, prioritising prevention and protecting frontline services for those most in need of our support – all while keeping the increase in Council Tax to one of the lowest, if not the lowest, in the country.
We were the first city in Scotland to declare a housing emergency and are now putting our money where our mouths are with an additional investment over the next five years – one of the largest housing interventions by a local authority in modern times. This will provide thousands of much-needed affordable new homes for families, while reducing the use of costly and unsuitable temporary accommodation and helping us to reduce the scourge of poverty on this city.
Alongside the additional £6 million we’ve pledged towards social care, we’re prioritising support for some of our most vulnerable children and young people across the city. We’re investing in early family support, keeping children with their families wherever we can. We’re expanding support for pupils with additional support needs, with extra staff in both our special schools and mainstream schools. And we’re committing £86 million towards progressing major extensions at both Craigroyston and Queensferry High Schools.
It’s important to remember that we’re not working in isolation and, having listened to our third sector partners, we’re today committing an additional £4 million to help them continue playing an essential role in supporting our residents – and, crucially, to plan with more certainty and security.
This ambitious budget clearly demonstrates the strength of listening to our communities and working across party lines to do what’s best for the residents of Edinburgh.
Finance and Resources Convener Mandy Watt added:
We remain the lowest funded council in Scotland, which poses a real challenge when setting our budget each year. Despite this, officers have produced an innovative budget that prioritises the services that most matter to the people of Edinburgh – from investing in our roads, pavements and parks to caring for our youngest, oldest and most vulnerable residents.
This is a budget that protects, and in many cases enhances, these frontline services. But it also allows us to protect our residents and businesses from bearing too much of the financial burden that goes with it. I’m proud, then, that we’ve been able to limit our Council Tax rise to only 4% and to freeze most fees and charges for the next 12 months.
Edinburgh’s budget – key facts
Tackling the housing emergency
- Tackling the housing emergency with an additional £1.6bn investment for affordable homes and temporary accommodation - 2,500 homes for temporary accommodation, funding to unlock around 1,100 settled homes at affordable rents and investment capacity for up to around 2,300 additional settled homes.
- Further key investments totalling £3m directed towards homelessness prevention, including additional staffing to work directly with those at risk of homelessness and creation of a grants budget to bring empty homes back into use as part of the Private Sector Leasing scheme.
Maintaining and improving the city’s roads, schools and public buildings
- Continue ongoing investment in roads and pavements programme with a further £25m for two years, following the initial investment of £37.5m over three years, which brought a significant improvement in the state of city’s roads. An additional £480k was agreed today towards pothole repairs and white line painting.
- Craigroyston and Queensferry High Schools will benefit from investment totalling £85.8m to progress major extensions as part of the City Plan 2030. This is in addition to the investment of £296m in five new schools and five extensions, together with the replacement of Fox Covert Campus, which was approved last year.
- £13.2m for the development of a new permanent Blackhall Library, £7.5m for Portobello Swim Centre and an additional £18.3m over ten years to enhance a co-ordinated Council-wide Buildings Improvement Programme.
Getting it right for every child
- Budgeted spend on Children, Education and Communities in 2026-27 of £587m, an increase of £14m compared to last year’s budget.
- Continued investment in education and children’s services, including expanded ASN staffing and facilities, ensuring inclusive education and better life chances for every child in Edinburgh and support targeted investment to improve safety and address violence and aggression at work, recognising the duty of care owed to Council employees and the importance of safe service delivery.
- Prioritising early family support and keeping children with their families where safe, rather than costly and disruptive external care placements.
Preventing poverty
- Rolling out Neighbourhood Prevention Partnerships across five local areas to join up services and make help more accessible.
- Funding for advice and benefits services (building on a £1m allocation in 2025/26).
- Improving affordable childcare access, expanding affordable housing, and creating a citywide community wealth-building plan.
- Prioritising the acceleration and improvement of the city-wide early intervention actions needed to prevent poverty in Edinburgh.
Supporting the third sector
- A sustainable and strengthened package of support for the third sector, including a £1.4m income maximisation fund, providing support for third sector providers of money, welfare, and debt advice in Edinburgh and a £2.0m Local Community Organisations fund - with a further £500k agreed today to support small third sector organisations.
Extra support for health and social care
- The budget includes an additional £6 million uplift to support the Integration Joint Board budget pressures. This approach provides short-term financial stability for the IJB, allowing focus to remain on service sustainability, transformation and delivery of strategic priorities.
- Invest £50k towards installing Bleed Kits in Council buildings across the city
New Council Tax bands
A 1,084.03
B 1,264.71
C 1,445.38
D 1,626.05
E 2,136.45
F 2,642.33
G 3,184.35
H 3,983.82