Aberdeenshire Council agrees budget for 2026/27
Aberdeenshire Council has set its budget for 2026/27 and outlined what the future may hold for residents and communities.
The budget, shaped by rising demand, financial pressures and a commitment to supporting communities, was agreed by Full Council today (Thurs, Feb 26) and will see:
• A revenue budget set for the year of £860 million
• A significant new support package for Health and Social Care announced
• A capital plan set for the year at £103 million
• £1.88 million in additional investment for roads budget to support ongoing reactive repairs programme
• Additional investment in IT security and digital initiatives
• Council Tax set at 10%
• Savings of over £9 million identified and taken
Speaking after the budget was agreed, the council’s co-leaders Cllr Stewart Adams and Cllr Anne Stirling emphasised the shared responsibility to meet growing challenges head-on while continuing to deliver the services residents rely on most.
It was reiterated in the chamber that savings are becoming harder to find each year, with officers scrutinising every penny of spend to set priorities for the year ahead.
As part of the new approach, and driven by demographic demand, the Administration reiterated its commitment to supporting health and social care services, recognising the lifeline these services provide to older adults, families and vulnerable residents.
To deliver this, today councillors agreed an additional £6.5 million be committed to the Integration Joint Board, above statutory contributions, to help meet rising costs and demand, alongside £8 million being committed for the additional costs of covering the Real Living Wage and the National Care Home contract.
It was described as a budget to fund what matters most around the health, well-being and care of residents, the economy and the environment, where every pound spent must deliver real value. That means making tough choices but also seizing opportunities to innovate and improve, and how to work together across public services and communities, which is not only a strength but also a bedrock on which decisions are based.
Rising inflation, workforce pressures and increasing demand are affecting every council service. Aberdeenshire is also experiencing one of Scotland’s fastest-growing older populations and the council made a firm commitment to recognising and supporting the evolving requirements of health and social care. Alongside that there is a further commitment from the council to prioritise essential services like education, infrastructure and essential services as the council focuses on the changing demography, growing the economy and maintenance.
There was universal praise for council staff, in their leadership, their local roles, their work with communities, their dynamic approach and their drive to do the right thing for people where they live and work, which was celebrated by councillors across the chamber.
Capital Plan
The approved Capital Plan for 2026–2031 supports long-term investment in core infrastructure and community assets:
• Learning estate improvements
• Roads, bridges and transport
• Digital connectivity
• Community and leisure facilities
• Energy, sustainability and resilience projects
• Housing and modernisation
The co-leaders emphasised that investment must remain sustainable and reaffirmed support for robust governance and long-term affordability, including the continuation of the 8.5% borrowing cap.
Council Tax
To ensure the council can continue delivering essential services, councillors agreed a 10% increase in Council Tax for 2026/27, the equivalent of £12.77 per month for the average Band D household when paid over 12 months. This forms part of the council’s three-year strategy to stabilise its financial position following years of national Council Tax freezes. The Co-Leaders stressed that concessions remain in place to protect those on low incomes and that every penny raised stays in Aberdeenshire to be reinvested directly into local services, and helping make sure services are consistent.
In addition, it was agreed to increase the Council Tax premium on Long-Term empty properties and Second Homes from the current 100% to 200%. The Council will consult on changes to these policies, with a view to changes coming in in September. The national legislation put in place to support this should help local authorities encourage owners to bring empty properties back into use, increasing the supply of housing for those who need homes and to reduce the impact on communities caused by houses being left empty. Second homeowners will be encouraged to use their accommodation differently for the benefit of local communities reaching the right balance for their local circumstances.
There was widespread support in the meeting for the council workforce from teachers and waste crews to carers and economic development staff and all of the teams whose day-to-day work keeps Aberdeenshire running.
While the challenges ahead are significant across the public sector, the council remains determined to meet them with transparency, honesty, and a firm focus on supporting residents through change.
Savings taken
Where savings will affect individual council services or teams, consultation with affected colleagues will be undertaken in full. Likewise, savings with community impacts will be subject to consultation as needed. The savings identified for the coming year span:
• School administration
• Grounds maintenance and cleaning
• Grants to third-party organisations
• Targeted staffing reductions, with a focus on vacancy management
• Procurement efficiencies
• Income generation and increases to fees and charges
• Reviews of concessionary charging at Live Life Aberdeenshire facilities
The full list can be found in the budget papers at appendix 7 https://aberdeenshire.moderngov.co.uk/ieListDocuments.aspx?CId=142&MId=8164
Co-Leader Cllr Stewart Adams said: “Across Scotland, local government finances face mounting pressures. Our resources are stretched thinner than ever, with rising costs and increased demand for essential services. We are tasked with balancing the books while protecting the vital services upon which our residents depend.
“This year, Aberdeenshire, like many councils, is compelled to strike a balance between prioritising and investing in those services which are highly valued by our communities, with delivering changes in areas which may not always be popular, but we believe are either no longer required, not our responsibility or indeed, can be done very differently. Our ambition as an Administration is to deliver on our priorities whilst ensuring sustainability and fairness for everyone in our region.”
Co-Leader Cllr Anne Stirling added: “I wish to acknowledge the hard work and dedication of our staff, our partners and our communities as we move forward together. The commitment of our workforce in delivering our services is never taken for granted. From teaching our children, to collecting waste, to keeping communities healthy and safe, to supporting a vibrant economy, the Council is there to offer support when needed at every stage of life. To every member of staff supporting communities and delivering important and valued local services, thank you for everything you do.
“Let me reaffirm this council’s unwavering commitment to serving Aberdeenshire’s people. The financial challenges we face are significant, but so too is our resolve. By working together – across services, with partners, and with our communities – we will not only meet these challenges but emerge stronger. I am optimistic about our future. With continued investment in our people, our services, and our economy, Aberdeenshire will remain a great place to live, to work, and to raise a family.”
Speaking on behalf of the main Opposition group, Cllr Gwyneth Petrie presented an alternative budget which including a proposed Council tax increase of 8.5%. Among the proposals were moving of £1.5 million from the risk and inflation reserve to a dedicated winter and adverse weather reserve, together with funding for the continuation of the Kemnay flood defence system and to allow current grit bins to be refilled with no unnecessary removal of any bins. It also sought to sell additional ELC hours in council settings to bring increased income, sought further sponsorship opportunities and proposed unfreezing the transformation reserve to help deliver some of the proposals within its budget including the setting up of decriminalised parking.
Cllr Petrie said: “As with all organisations, in fact with even every individual and family, it is incumbent upon us to rethink how we do things, where we spend and how we ensure sustainability going forward. We all recognise the importance of the services we deliver for those we represent. We are putting before council today a budget which does make some efficiencies, but which has a hyper focus on meaningful change and transformation, with communities at the heart of what we do. It is a budget which shares the responsibility and impact of efficiencies across elected members, officers and residents. And it is a budget which protects our most vulnerable and works to ensure future sustainability.”
The chamber voted 37-21 in favour of the Administration’s budget proposals, with eight no votes cast.