South Ayrshire Council Agrees 2026/27 Budget With 8% Council Tax Increase

At today's meeting (Thursday 5 March 2026) of South Ayrshire Council, councillors agreed on a range of options to address the identified budget gap and set a balanced General Services revenue budget for 2026/27. 

This follows on from decisions taken at the Council meeting of Thursday 19 February, at which councillors agreed the Capital Investment Budget for 2026/27; set fees and charges for 2026/27; and considered the updated Medium-Term Financial Plan.

Today, councillors were presented with a range of proposed savings options and have chosen to accept £2.728m of these for 2026/27.  Decisions taken in this budget also result in savings of £0.483m for 2027/28, which begins to reduce the forecasted budget gap for that period. 

The Council has also taken steps to improve sustainability for the future. As shown in the Medium-Term Financial Plan, investment in our leisure facilities and through transformation work is expected to generate income and cashable benefits in future years. 

It is our ongoing priority to protect those who are most in need in our communities and councillors therefore agreed to add an additional £1.59m, through recurring funding and a one-off use of reserves, to the 2026/27 Health and Social Care Partnership (HSCP) budget.  This brings the Council's total additional funding, on top of what was allocated through the Scottish Government's local government finance settlement in January, to the HSCP to around £2m more for this period.

As agreed by councillors last year, the increase in Council Tax for 2026/27 will be 8%.  This means the annual cost of a Band D property will be set at £1694.96.

Councillors also agreed proposals for Common Good budgets for 2026/27.

Information about the Council's 2026/27 budget can be viewed at Administration_Budget_26-27_8791hqeg2qoa.pdf

South Ayrshire Council's Policy Lead for Finance and Corporate Services, Councillor Ian Davis, said: "Like many local authorities across the country, we are facing unprecedented financial pressures as we set our 2026/27 Budget.  Rising costs and sustained demand for essential services have made this an extremely challenging process. 

"I'd like to thank those residents who took part in our budget builder consultation exercise.  Findings from this were considered as part of the budget setting process.

"While I am pleased that we have been able to deliver a balanced budget, I recognise that some of the necessary measures we have had to take will not be welcome news.  These decisions have not been taken lightly, but they are essential to ensure the council remains financially sustainable and able to continue to deliver vital services.

"This budget sets out a way to bridge the gap in 2026/27 and also begins to set out the approach that we will need to take as a Council to do the same in 2027/28."