The Highland Council has agreed its budget for 2026-27, setting out plans for new investment in key services, actions to support sustainable growth, and targeted support for those who need it most.
The budget includes:
- A 7% increase in Council Tax – 5% to support the delivery of core services like education, roads, housing and social care, and 2% of ring-fenced funding for The Highland Investment Plan, the Council’s £2.1 billion, 20-year programme of capital investment in schools, infrastructure, and community facilities.
- £12 million of new investment in adult social care, housing, education, regional skills, poverty reduction, and roads. This adds to £4.5 million of recurring investment previously agreed from last year’s budget setting process.
- A £61 million package of strategic and service savings, income generation proposals, and financial flexibilities. These are designed to close a £46.7 million budget gap over the next three years and support investment proposals.
The budget has been informed by consultation with community councils, business groups, young people, and members of the public.
Leader of the Council, Cllr Raymond Bremner, said: “This budget provides targeted support for those who need it most, strengthens essential services, and drives sustainable growth across our communities through our Highland Investment Plan. We have listened carefully to our communities and directed additional investment towards the things they care about most, including education, roads, housing, and adult social care, while setting a Council Tax increase that remains among the lowest in Scotland.”
Convener of the Council, Cllr Bill Lobban, added: “Funding across the public sector is tight. We’re operating in an extremely challenging environment, where grant funding does not keep pace with service demand and the priorities we face as a region. We are addressing these challenges head on – we’re not salami slicing our budgets, but taking a long-term approach to financial planning, which enables us to be more strategic and forward looking in shaping our future operating model. This strategy includes decentralising and improving services, investing in our schools, buildings and infrastructure, and supporting actions that help our communities remain independent and resilience.”
New investments agreed include:
- An additional £7 million (recurrent) investment in adult social care, on top of £12 million (non-recurrent) to address an overspend in 2025/26 and support the change and transformation work required to develop a sustainable model which will help ensure people can live independently in their homes for as long as possible (totalling £19 million). This brings total revenue funding in adult social care to £156.2 million in 2026/27.
- £1.6 million investment to create a Workforce North Co-investment Fund in partnership with Skills Development Scotland. This will support regional plans for workforce development and address skills shortages, including the expansion of Foundation and Modern Apprenticeships.
- A £1 million fund to support the Highland Housing Challenge, funded through income generated by Council Tax levied on second homes and long-term empty properties. This would fund a grant and loan scheme to encourage owners of long-term empty properties to bring them back into occupation as principal homes.
- £500,000 to implement recommendations from the Highland Poverty and Equality Commission, due to be published in June.
- £500,000 additional investment to support roads maintenance costs, adding to £8.7 million revenue funding and the previously agreed £21.5 million capital programme for 26/27.
- £500,000 to support the future operating model, including the introduction of mobile service points across rural communities providing housing, benefits and service support, and training, alongside partners in the public and third sector.
- £406,000 additional investment for schools to support children experiencing poverty and barriers to learning including a 2% top up to Pupil Equity Funding.
- £300,000 additional investment for the Repair the Highland Fund, which supports reuse and repair community projects, building on the £500,000 investment in 2025/26.
- Other local community investments include increased funding for ward discretionary budgets (£105,000), public toilets (£72,000), and community councils (£55,000).
The Council also agreed to set aside up to £1.2 million over two years to progress plans to reduce waiting lists for neurodevelopmental assessments, including autism and ADHD, and to develop a sustainable long-term solution to prevent future backlogs, in partnership with NHS Highland. This funding would be subject to a viable, and detailed business case coming back to council for approval.
The full budget report and webcast are available to view.