Balanced 2026/27 Budget Set with 8.5% Council Tax Rise to Safeguard Services

Dumfries and Galloway Council met as a Full Council today (Thursday 26 February) and agreed its budget for the 2026/27 financial year, setting a Council Tax increase of 8.5% to help protect frontline services and invest in key local priorities.

Councillors agreed the council’s budget for 2026/27 after considering detailed three-year plans put forward by four political groups. 

Earlier this month, the council reported an estimated funding gap of £34.8 million over the next three financial years (2026/27–2028/29), caused by factors such as inflation, nationally negotiated pay awards, a forecast real-terms reduction in funding and rising demand for services like social care.

Councillors acknowledged the need for both increased income and savings to bridge this gap while maintaining essential services.

As a result of the agreed budget – and to balance its books – the council will:*

• Increase income: introduce a raft of revenue-raising measures, including an 8.5% rise in Council Tax for 2026/27 and an increase in fees and charges for council services (for example, in areas such as leisure and sports facilities, licensing and waste services). These measures will generate additional income to support vital local services.
• Deliver savings: implement a range of savings and efficiencies – including many options consulted on through the public Budget Consultation in late 2025 – amounting to £4.18 million in 2026/27 and rising to approximately £9.76 million by 2028/29. These savings will help close the funding gap.

In addition, the 2026/27 budget makes significant investments in priority areas identified by the public through the council’s budget consultation, and by councillors:

• Supporting social care: an extra £5.32 million will be delegated to the Dumfries and Galloway Integration Joint Board (IJB) to support the commitment to adult social care workers receiving the Real Living Wage. A further £2.8 million is set aside to support the IJB’s forthcoming Adult Social Care Change and Savings Plan, subject to that plan being agreed by the IJB next month. These measures will help protect essential care services for the elderly and vulnerable and help sustain the social care workforce.
• Tackling poverty: the council has continued its commitment to support tackling poverty and inequalities by investing £928,000. This investment will bolster support for residents most impacted by the cost-of-living crisis.
• Local priorities and infrastructure: around £916,000 in additional funding will be directed towards local priority initiatives in 2026/27. This includes reinstatement of layby bins outwith 30mph limits and investment in community assets. These initiatives aim to improve daily life across Dumfries and Galloway.

The Capital Investment Strategy approved as part of the budget includes funding for the delivery of major capital projects including the Whitesands Flood Protection Scheme in Dumfries and the Stranraer Marina redevelopment, as agreed by councillors in December 2025. 

It also provides funding in 2026/27 to progress the development of important capital projects, including the proposed Newton Stewart Flood Protection Scheme, the Dumfries Academy/Loreburn Primary school campus project, improvements to the Thistle Grove travellers’ site and initiatives within the Borderlands Growth Deal.

These investments will help improve infrastructure, bolster the economy and enhance quality of life for communities across the region, while ensuring that projects remain affordable and sustainable.

Dumfries and Galloway Council Convener, Councillor Katie Hagmann, said: 

“Setting a balanced budget that delivers for our communities across Dumfries and Galloway is always a challenging task. All councils across Scotland are facing tough financial decisions, and locally we have worked hard to balance these pressures. The priority was to protect the vital frontline services that people rely on every day and to invest in the areas that make a real difference in our residents’ lives. 

“We want to ensure that the services our communities depend upon are safeguarded, and that our budget reflects the priorities expressed by local people. We are immensely grateful for the key role that members of the public played in helping to shape this budget – their feedback during the budget consultation last autumn guided us in making these difficult choices.

“Increasing Council Tax by 8.5% was not a decision taken lightly. However, councillors decided that this increase – alongside required savings – is necessary to maintain the essential services and support our council provides, across Dumfries and Galloway, all while keeping our finances on a sustainable footing.” 

Councillors set the budget today for the 2026/27 financial year. Budget plans and Council Tax levels for 2027/28 and 2028/29 are indicative and will be determined by the council in advance of those financial years.

Under the Local Government (Scotland) Act 1973 and the Local Government Finance Act 1992, the council is required to set a balanced budget and fix its Council Tax before mid-March each year for the following financial year. 

A council is required to set Council Tax based on an overall balanced budget for the financial year.

Based on an 8.5% Council Tax increase, annual charges for each Council Tax band in Dumfries and Galloway will be as follows for 2026/27:

Residents can find more information on the council’s website: Check your Council Tax band and charges | Dumfries and Galloway Council. A recording of the Full Council meeting is available on the Council’s YouTube channel https://www.youtube.com/@dgcouncil, and the official meeting papers – including the agreed budget details – can be accessed on the council’s website Agenda for Dumfries and Galloway Council on Thursday, 26th February, 2026, 10.30 am | Dumfries and Galloway Council.

*Dumfries and Galloway Council’s agreed revenue budget for 2026/27 is approximately £515.79 million.