Council sets balanced budget and Council Tax rates
Councillors have today (Tuesday) approved spending of more than £320 million on services, including extra money for health and social care and foster carers, while setting a balanced budget for 2025/26.
Good settlements
Council Leader Councillor Kelly Parry acknowledged financial challenges remain but these were "vastly reduced by good settlements from both governments".
Fastest growing local authority area
More money from the Scottish Government in part is due to the recognition that Midlothian is the fasting growing council area in Scotland, and is on course to continue that growth, she said.
Cllr Parry added: "It’s a credit to our joined up lobbying campaign on this issue, in the previous council term as well as this one, and as much by officers as well as elected members. We will need to keep a sharp eye on settlements from both governments in the future, ensuring that the UK Government supports public services across the UK, because it has an impact here, as we can see.
Higher National Insurance contributions
"However, there has been a cost to that boost to Scotland and the council as an employer will have to foot the bill for its own higher contribution to National Insurance.
Council Tax rates set for next three years
Councillor Parry said the higher National Insurance cost is, therefore, reflected in the Council Tax rates. Confirming a Council Tax increase of 10% in 2025/26, 9% in 2026/27, 8% in 2027/28 and 5% in 2028/29, she said: "However in context, it’s important to note what that means in terms of the cost to residents, and what that provides in terms of value. Based on a Band D increase, that increase in 2025/26 will cost £2.91 a week, £12.62 a month, based on 12 months and approximately £151.47 a year.
"In return, residents will rightly expect us as a council to be prioritising their view, and I believe we have all tried our best to do so."
Extra money for health and social care
Councill Parry said that while residents will be paying more, the council will be delivering more.
Extra money for foster carers
In the recent consultation, residents agreed the council should invest in health and social care. Midlothian Integrated Joint Board, which plans and directs health and social care services, is to get an extra £7.2 million in 2025/26 while foster carers will see their fees rise by 5%.
What residents told us
Cllr Parry added: "The consultation confirmed local people want the council to retain leisure centres, and ensure community facilities remain open. They told us that avoiding cuts to education budgets that would have meant reducing learning assistants and retaining music tuition was worth paying for, and that’s exactly what this budget proposes.
Extra investment
"They also told us that they wanted extra investment in our roads and green spaces, and so we have increased these budgets, meaning we can take a more reactive and proactive approach to filling pot holes, and start landscaping work earlier in the year."
Efficiencies required
Cllr Parry warned, however, the council is spending more money that its total income. Efficiencies will have to be made and new approaches to generating income taken.
Leisure Centres
"We will need to treat some elements of our commercial services with a commercial approach. For example where we have low customer numbers, and not enough to cover our overheads in gyms and swimming pools we will need to address this, either by reducing opening hours, or reducing other costs. That is exactly what any commercial business would do, and the council cannot treat these services any differently.
Public interest
"I’ve noted with interest public conversation and petitions on this over the weekend and I want to make this absolutely clear, particularly to those that have promoted the idea that they need to ‘save’ leisure centres and swimming pools . The principle here is that is exactly what councillors are doing, this IS how we save our leisure centres and facilities.
More customers means more income
"And if the public wants to help, they could contribute by using the facilities themselves - we have fantastic facilities here in Midlothian and whilst our gym memberships are at the highest levels they have ever been, it’s a simple premise: more customers and more income means more investment, improved facilities and crucially, sustainability."
Using reserves
Approving the Medium-Term Financial Strategy, councillors agreed to use £4.3 millions of reserves in 2025/26. Increasing some fees and charges will generate a further £431,000.
Average Band D bills
The increase in Council Tax will take the average Band D bill (not including water charges) to £1,666.20 up from £1,514.73.
More on changes to Council Tax bands
Table on 2025/26 rates compared with 2024/25
| Bands | Council Tax rates 2024/25 (not including waste and water charges) | Council Tax rates 2025/26 (not including waste and water charges | Increase over 12 monthly payments |
| A | £1,009.82 | £1,110.80 | £8.42 |
| B | £1,178.12 | £1,295.93 | £9.82 |
| C | £1,346.43 | £1,481.07 | £11,22 |
| D | £1,514.73 | £1,666.20 | £12.62 |
| E | £1,990.19 | £2,189.21 | £16.58 |
| F | £2,461.44 | £2,707.58 | £20.51 |
| G | £2,966.35 | £3,262.99 | £24.72 |
| H | £3,711.09 | £4,082.20 | £30.93 |