Council reaches out ahead of 26-27 budget

Highland Council is reaching out for views to shape its next budget.

As it looks to set out its forthcoming priorities, the council is seeking involvement from members of the public, including businesses, community groups, parents, and young people.

All their opinions are going to be crucial in deciding how Highland Council will take on its budget challenge for 2026-2027.

The next budget for 2026/27 will be confirmed by the Scottish Government in January 2026. Feedback from our communities will help councillors understand what matters most to people and inform the decisions they take when setting out spending commitments in March 2026.

The challenge

The Highland Council is forecasting a budget gap of £16.3 million in 2026/27, £16.2 million in 2027/28, and £14.2 million in 2028/29.

A proactive approach is being taken in the face of these challenges.

The strategy includes growing the number of houses - helping address the housing challenge and providing more income in council tax - changing the way the council works to create more jobs across the region, being more entrepreneurial, and ensuring there is real community benefit from energy infrastructure investment.

There are still difficult decisions to make when it comes to services.

The council had an £805 million revenue budget in 2025/26 to deliver a range of services including education, adult social care, housing, welfare, and waste and recycling services, as well as sustaining roads, footpaths, bridges, and harbours.

Government funding is based on population. With more schools per head of population than any other mainland council and over 4000 miles of road to sustain we need to budget carefully to manage our geographical differences.

Get involved

People can offer their views in a number of ways.

• A budget survey is online and in paper form in libraries and service points.
• Ideas can be posted on an online discussion board.
• The council will also be engaging directly with groups, including businesses and community groups.

Some key questions under consideration include:

• Should we increase Council Tax on second homes and long-term empty properties?
• How can we generate more income? This could include things like car parking, garden waste bins, school meals, or service fees.
• How can we encourage people to make better use of public transport?
• What services do you want to access locally?
• Which services or activities could the council bring in-house or outsource to achieve cost savings?

Feedback to help shape the budget proposal for 2026/27 will be presented to a meeting of the Highland Council at the beginning of March for discussion and approval by elected members.

The Highland Council budget consultation closes on 5 January.

Council Leader, Cllr Raymond Bremner, said: “The Highland Council is being proactive in how we approach this challenge. We’re building more homes, creating more jobs across the region, and finding innovative ways to generate income and cut costs. We’re also ensuring communities benefit from the Highlands’ renewable energy potential.

“But there are still tough decisions ahead – decisions that affect the services people rely on every day.

“Public and staff engagement in the lead up to our last budget was extremely helpful in shaping our thinking and decisions. Our budget consultation is now open, and I would encourage everyone to get involved in how the Council spends our money.”

Convener of the Highland Council, Cllr Bill Lobban, said: “It is essential the Council continues to apply a strategic approach to its financial planning and financial sustainability.

“Our communities need to be at the heart of this process and that is why we are asking them to tell us what services are important to them, and seeking views on where we can save money, change how we deliver our services and generate more income.”

Chair of the Council’s Corporate Resources Committee, Cllr Paul Oldham, said: "We want people to understand the budget setting process and our budget position, as well our approach to meeting the gap in the budget and our ambitions for growth, investment, and cultural transformation.

“Engagement in the process is key to constructive feedback and, as we prepare our budget proposals, it is important that we listen to the views of our service users, staff, and community representatives.”

More information on the Highland Council Budget Challenge 2026/27 can be found via this link: https://www.highland.gov.uk/info/670/consultations_complaints_and_compliments/668/our_budget

Notes to editors

• The Highland Council has delivered over £217 million in savings over the past 12 years.
• Through Our Highland Investment Plan 2% of council tax revenue each year will be set aside to fund a £2 billion investment plan over the next 20 years.
• The Highland Social Value Charter is working with developers. This ensures community benefit and a legacy from renewable investment over the next 20 years.
• Scottish and Southern Electricity Networks (SSEN) Transmission is the first company to sign the Charter.
• Highland Council runs its own bus service and has made public transport improvements for local communities.
• The Council-run Storr visitor attraction in Skye is supporting local jobs and local suppliers. It generated around £450,000 in profit in its first year, which has supported reinvestment in the path network and public toilets.