Ambitious budget set to empower communities and support the most vulnerable

Despite the costs of providing essential services continuing to rise, flexibility from a three-year Council Tax strategy and additional funding from the Scottish Government meant that Councillors were able to agree a budget for each of the next three years which prioritises services for the most vulnerable, avoids further public sector job cuts, and invests in community empowerment and business growth. All with a lower Council Tax increase than originally proposed.

The agreed Council Tax increase for 2025/26 is 9.5%. This follows a freeze in the current year. For people living in a Band D property, this represents a £2.56 weekly increase, or £11.11 more a month. Provisional increases have also been agreed of 9.5% for 2026/27 and 6% for 2027/28.

Key investments agreed:

• Protecting vital services for residents in the greatest need - the budget prioritises vulnerable residents, with almost £7 million to maintain health and social care services, plus £1 million over two years to support innovation and provide new models of delivering care in our communities. 
• Protecting frontline jobs - no further job cuts are required as part of the budget decisions made today, with over £2 million being put back into Education and Learning to reverse proposed reductions in teacher numbers and £400,000 to prevent further cuts to teams supporting vulnerable children and families. Council officers are continuing to deliver on phase 2 of the leadership savings agreed last year.
• Empowering communities - the budget includes £1 million to support community resilience, £1 million for Culture Perth and Kinross services, and almost £150,000 in community sports.

Council Leader, Councillor Grant Laing, said: "Community groups are an essential part of delivering on local ambitions, and I'm proud that this budget creates more opportunities than ever before to put them at the heart of local decision-making. From additional funding for Bloom groups and Community Councils, to investing in community resilience and community sports, there's lots we have been able to do.

"We've also listened to the community members who have campaigned in support of their rural libraries, and allocated money over two years to allow Culture Perth and Kinross to maintain current premises and opening hours. But, this funding is contingent upon the energy and commitment shown by those supporters now being directed towards working with CPK to plan and implement sustainable futures for those libraries."

Additional key investments include:

• Economic growth - £9 million over four years in the Commercial Property Investment Programme to make more units available for new and growing businesses, particularly in rural Perth and Kinross.
• Environmental initiatives - £200,000 to provide practical support to Bloom and biodiversity groups to accelerate the delivery of the biodiversity aims of our Grow Wild approach to greenspaces. And, another £200,000 to deliver a new round of the Green Living Fund for community projects.
• Public transport - almost £170,000 to extend the offer for free bus travel on the first Saturday of every month for another year, adding extra free travel for Clean Air Day in June and for an additional free Saturday in December in the peak Christmas shopping season. Plus, almost £70,000 for rural bus services and community transport initiatives.
• Tackling poverty - adding £2 million to target anti-poverty initiatives, including continuing school holiday food and fun activities, and investing in efforts to tackle poverty in rural areas.

Councillor Laing added: "One of our key priorities is to tackle poverty head-on. We are investing in job creation and growth schemes, such as apprenticeships and rural employability programs, to provide more opportunities for our residents. Additionally, we are adding £2 million to our anti-poverty funding and allocating £600,000 to the Financial Insecurity Fund and Scottish Welfare Fund. This will ensure that we can support those facing financial challenges and help them access the discounts and benefits they are entitled to.

"Our Welfare Rights Team does a fantastic job in helping maximise income for households in financial need. By investing further in this team, we can support even more households and ensure that everyone in our community has the resources they need to thrive.
"With this ambitious budget, we are not only addressing immediate needs but also laying the foundations for a resilient and thriving community. Together, we are building a brighter future for Perth and Kinross."

Reaction statements from local organisations

We have welcomed a number of reaction statements from local organisations who have recognised the efforts of the budget to protect social care, tackle poverty, and invest in economic growth. For ease we have added shared these statements below.

Perth and Kinross Anti-Poverty Taskforce

Co-chairs of the Anti-Poverty Taskforce, Shaheena Din and Gareth Ruddock, said: "We warmly welcome the commitment to invest £2million in anti-poverty initiatives. This much-needed funding will improve food quality, support community groups in delivering school holiday activities, and strengthen the Financial Insecurity Fund and Scottish Welfare Fund. These are lifelines for families facing hardship, and this investment will make a real difference in ensuring that no one in our community is left without the support they need.

"Tackling poverty in Perth and Kinross requires us all to work together. The Perth and Kinross Anti-Poverty Taskforce reflects our shared commitment to collaboration, ensuring that support is well-coordinated and reaches those who need it most. By strengthening partnerships with community groups, local businesses, and organisations, we can harness our collective expertise and resources to build lasting solutions. It is only through this united effort that we can create real change and make sure every family has the security and opportunities they deserve."

The original statement was published in the Anti-Poverty Taskforce newsletter, and can also be found on their LinkedIn account.

Perth and Kinross Business Partnership

Responding to the budget measures, Jackie Brierton, Co-Chair of Perth and Kinross Business Partnership, said: "Strong businesses are critical to achieving our collective ambition for a prosperous and sustainable region, and a positive future for local people and our communities.

"Despite the challenging funding environment, we are pleased to see Perth and Kinross Council invest what will amount to £10million over four years in measures to boost our economy. This will help the regeneration of our city and town centres, build the skills of our workforce, support new and existing businesses to grow, and show our region is open for business.

"We welcome the additional funding and recurring commitment to continue the successful Adapt Your Property Scheme, which will help to bring empty buildings across the region back into use. 

"The £9 million Commercial Property Investment Programme will support new and growing businesses in gaining access to serviced land, addressing an issue that is often a drag on taking enterprises to the next stage of their development.

"We also know the critical importance of businesses having access to skilled employees, and helping our young people, the next generation workforce. 

"Council funding over the next three years to enhance apprenticeships, provide tailored training, deliver a Rural Skills Academy, and support pathways into land-based employment, is a further positive step for our economy.

"These measures will support the delivery of the new Perth and Kinross Economic Action Plan for 2025-2030, as we work together to grow local businesses, attract jobs and investment, tackle inequalities, and maximise the opportunities from the transition to net zero.

"Recent research has shown the huge potential for our region, identifying Perth and Kinross as the top area in the UK for growth potential among its businesses.

"But delivering on our plans and potential is only partly about the council and its spending. We need bold actions by all stakeholders and real partnership working, delivering solutions at pace, getting our communities behind our vision, and looking beyond our regional borders to make a powerful case for inward investment."

The original statement is published on the Perth and Kinross Business Partnership website.

Perthshire Chamber of Commerce

Vicki Unite, Chief Executive, said: "The recognition that investment in business growth is essential to achieving the wider goals of Perth and Kinross is welcome news for the business community. This budget acknowledges the crucial role of local businesses in driving economic success, creating jobs, and fostering a resilient local economy. By committing funding to commercial property development, training, and business support, the Council is taking meaningful steps to ensure that our region remains an attractive place for businesses to start, grow, and thrive.

"We are fully committed to continue working in partnership with the Council and local businesses to shape and implement the new Perth and Kinross Economic Action Plan. Our role is to ensure that the voices of businesses are heard and that the support provided is tailored to real-world needs and we will continue to advocate for policies that foster innovation, skills development, and investment in the infrastructure needed to sustain long-term economic success. We have a strong, vast and well-established trusted network which is ready to welcome and utilise this opportunity.

"Investing in apprenticeships and industry-specific training is a crucial step in building a skilled workforce that meets the evolving needs of local businesses. This £450,000 investment over the next three years demonstrates a strong commitment to ensuring that young people in Perth and Kinross have access to valuable opportunities that will help them develop their careers while contributing to the local economy. Supporting apprenticeships not only helps businesses fill skills gaps but also provides a direct route for young talent to thrive in key industries. 

"The additional £150,000 investment in rural employment initiatives is particularly welcome, as it will help address workforce challenges in more remote areas by creating skilled jobs where people live. Strengthening rural employment opportunities is essential for tackling economic disparities and ensuring that businesses in every part of Perth and Kinross have access to the talent they need to grow. We look forward to working with the Council to help shape these initiatives and connect businesses with the right skills for the future. 

"On the decision to make the Adapt Your Property Fund a recurring initiative, this is a highly positive step. It provides businesses with certainty and stability, allowing them to plan and invest in adaptations that will make their premises fit for the future. This change removes unnecessary delays and ensures that businesses can respond more effectively to changing market demands, enhancing their long-term sustainability and growth.

"Access to suitable business premises remains a key challenge for both new and expanding enterprises in Perth and Kinross, so the commitment to increase the availability of small business units and serviced land is a vital move that will encourage further investment and create the right conditions for business expansion. By addressing this infrastructure need, we can unlock new opportunities for economic growth, job creation, and innovation across the region."

The original statement was provided to us by Perthshire Chamber of Commerce for sharing alongside our news story.

Federation of Small Businesses

Responding to Perth and Kinross Council's budget proposals, Mike Duncan, Development Manager for the Federation of Small Businesses (FSB), said: "We welcome Perth & Kinross Council's commitment to a number of programmes which will support local small businesses, including multi-year funding for the Adapt Your Property initiative helps tenants and property owners to upgrade and repurpose vacant commercial properties.

"While there will always be concern about the impact of increased parking charges and permit fees, the commitment to invest a further £7million to refurbish and build new business units is also welcome. If small business owners want to grow and employ local people, they often need affordable, dedicated premises to fully achieve their ambitions.

"Investment around apprenticeships and training, and the development of rural skills and employment opportunities, will help to deliver aspects of the economic action plan that FSB has helped to develop and is currently out for public consultation. 

"As members of the newly formed Perth and Kinross Economic Partnership, FSB will continue to collaborate with the Council, and others, to make sure the priorities of local small businesses are always heard around the table." 

The original statement was provided to us by the Federation of Small Businesses for sharing alongside our news story.

Scottish Care

Dave Henderson, Independent Sector Lead in Perth and Kinross, said: "I welcome the £6.7m funding from Perth and Kinross Council's budget to support social care through this additional investment in the Perth and Kinross Health and Social Care Partnership (HSCP). While this funding will not fully address the extensive pressures across the social care system, I recognise the positive impact it will have in helping the HSCP to maintain current levels of provision and services for the people of Perth and Kinross. This, in turn, supports independent social care providers who deliver these crucial services in our area."

However, he stressed that further national and local resources will be needed to ensure long-term sustainability.

"Like other social care providers across Scotland, they face significant financial and sustainability challenges, including the increasing burden of employer National Insurance contributions. Additional national and local resources will therefore continue to be required, and solutions identified through collaborative working, but this announcement is a positive step for local services, communities and citizens."

The original statement is published on the Scottish Care website.