Scotland is poised to witness an unprecedented rise in council tax next month, with local authorities collectively agreeing to increase rates by up to 15%.

This decision comes in response to prolonged cuts in grant funding, compelling all of Scotland’s 32 local councils to implement changes starting in April.

Most authorities are expected to raise their council tax by around 10%, with Falkirk and Orkney leading the way at 15.6% and 15% increases, respectively.

The new rates for Band D properties will see Falkirk residents paying £1,576.77 starting next month.

Concurrently, water bills across Scotland will also experience a 9.9% hike beginning in April, although approximately half of households are eligible for discounts.

Earlier this year, the Accounts Commission, an oversight body, highlighted severe financial strains facing Scottish local authorities due to significant government funding shortfalls.

This financial squeeze has compelled councils to borrow more and deplete their reserves.

While the Scottish government has provided an additional £1 billion in funding for this fiscal year, local councils have deemed the amount insufficient to meet their escalating financial needs.

Councillor Laura Murtagh, who advocated for Falkirk’s tax increase to address a £33 million budget deficit, expressed deep concern over the pressures faced by local authorities, reflecting the broader sentiment among council leaders grappling with financial decisions.

Rising costs of public sector pay, the financial implications of increased employer national insurance contributions, and inflationary pressures further exacerbate the situation.

Specific council tax increases across various regions include a 7.5% rise in Glasgow, 8% in cities like Edinburgh, East Ayrshire, and Dundee, and increases of 10% in Aberdeenshire, East Lothian, Scottish Borders, and Shetland.

Additionally, Angus and Clackmannanshire will see rises between 11% and 13%.

Advice Direct Scotland, which oversees the moneyadvice.scot debt advisory service, has reported a surge in clients struggling with council tax debts, noting that many households are encumbered with debts averaging between £2,000 and £3,000, with some cases reaching as high as £15,000.

The organization has been assisting approximately 2,000 individuals monthly with council tax-related financial issues.

As coastal councils such as Orkney and Edinburgh consider introducing a new £5 per capita charge on cruise ship passengers, further moves to enhance revenue are underway.

Aberdeen council is also pursuing a visitor levy similar to one already being considered in Edinburgh.

Historically, council tax rates in Scotland have been kept low through governmental interventions such as a nationwide freezing of council taxes and imposed caps on annual increases, funded in part by raised central government grants.

Under former First Minister Humza Yousaf, a freeze was implemented in October 2023, which sought to gain voter support following a significant defeat in the Rutherglen and Hamilton West byelection.

This freeze led to tensions with Inverclyde council, which had voted to increase its council tax by 8.2% last year; the council was initially met with the threat of grant reductions by the government but later received a £2.9 million boost to alleviate the situation.

Despite these measures, the Scottish National Party faced substantial losses in the 2024 general election, losing 35 seats to Labour.