Council budget for 25/26 approved
East Lothian Council's budget for 2025/26 has been set with a focus on supporting vulnerable residents and giving children the best start in life.
The cross-party budget was been developed in the context of significant ongoing demand and cost pressures arising from East Lothian’s growing population, alongside wider economic challenges. Despite being one of Scotland's fastest growing areas, analysis from the Scottish Parliament Information Centre (SPICe) of the provisional 2025-26 local government finance settlement shows that East Lothian receives the third-lowest funding settlement in Scotland per head of population at 81.4% of the Scottish average.
Members approved a 10% rise in council tax following a freeze in the current year. For people living in a band D property this represents a £2.76 weekly increase. After consultation with council tenants, a 6.5% increase was agreed – an average of £5.25 per week.
Investment in services
Councillors also agreed:
- a commitment to invest over £211 million in infrastructure over the next five years including education estate
- an increase of £7.5million investment to support the delivery of vital adult social care services
- an additional £1 million for council home modernisation
- increase in roads and property renewal budgets of £1m each
- planned savings of £8.9 million over the next five years with a commitment to identify further measures to close the budget gap over the medium term
Investment will also continue in local infrastructure and schools through its capital programme, whilst helping to support and protect the local environment.
The uplift of £1 million to the roads budget in 2025-26 brings overall investment in roads over the next five years to £22.7 million.
The capital budget also includes significant investment in the school estate including improvements to security, increasing Additional Support Needs (ASN) provision space and the completion of three new primary schools which are due to open in 2025.
Although a balanced budget was set for 25/26, elected members heard that the rise in Government funding was not enough to cover ongoing cost pressures to the authority including the rise in employer national insurance contributions which are not fully funded.
Tackling the budget gap
Taking account of planned savings and council tax increases, the budget gap for the council and Integrated Joint Board has reduced to £45.911 million (from £79.718 million) to 2029/30. Officers will carry out further work to develop a range of options to meet the future funding gap. Work will incorporate effective and meaningful engagement with the public and other key stakeholders.
Find out about what our budget for 2025/26 means for residents and services from our website.