Let’s talk about council spending

Overview

Let’s talk about council spending

Like all councils, Fife is experiencing a rising demand for services, particularly as the cost of living continues to impact people and families across Fife. Tackling poverty and inequality is a priority and the council focusses on support to help people increase their income, meet rising fuel bills and access quality food and housing.  

Last year, Fife Council spent over £528 million on education, schools and childcare - and £249m on health and social care, supporting people facing a range of health problems. Together these services use over two thirds of the council’s total budget. 

Council funding and spending information (click to open)

Council Services

The Council provides services like education, social work, housing, roads, and leisure activities.

Revenue Spending

Revenue spending means the everyday costs of running these services. This includes staff wages, running costs, interest payments, and paying back loans.
Most of this spending (except for council housing) comes from the General Fund, which is paid for by a mix of fees and charges, government grants, business rates, and council tax.
Council housing costs are mostly covered by rent.

Fees and Charges

The Council earns money from things like care home fees, school meal charges, and charges for using Council facilities.

Government Funding and Business Rates

The Government gives money to councils through General Revenue Grant and Non-Domestic Rates (business rates). The total amount is guaranteed, but how it’s split can change.
This system is designed so that if all councils spent what the Government thinks they need, they would all charge the same Council Tax.
Some grants are ring-fenced, meaning they must be spent on specific services.

Council Tax

Council Tax is the only part of Council funding that the Government doesn’t set. It pays for the remaining costs in the General Fund.
Council Tax is charged on every property in the Council area, with some discounts and exemptions.

Fife’s financial position is stronger than many other councils. Prudent use of resources and careful investment has meant council tax rates have stayed among the lowest in Scotland, and bigger cuts to services seen elsewhere have been avoided. But we’ll need to do more over the next few years to balance the books and protect our strong position for the future. 

Last year councillors outlined a 3-year budget to help with forward planning. This included an intention to increase council tax by 5% in 2026/27. Although we won’t know how much our government grant for 26/27 is until the Scottish budget in January, current estimates assume a £5 million gap between income and expenditure for next year, rising to £36m by 2028/29.  

Council tax information (click to open)

Council tax levels in Scotland
Ranking (2024/25 Band D order Council Band D Charge 2024/25
£
Band D Charge 2025/26
£
Band D Increase
£

Change
%

1 Midlothian 1,515 1,666 151 10.0
2 Aberdeen City  1,490 1,636 147 9.8
3 Argyll & Bute 1,479 1,626 146 9.9
4 Stirling 1,482 1,612 130 8.8
5 Glasgow City  1,499 1,611 112 7.5
6 East Ayrshire 1,487 1,606 119 8.0
7 Dundee City  1,486 1,605 119 8.0
8 East Dunbartonshire 1,416 1,600 184 13.0
9 Clackmannanshire 1,411 1,594 183 13.0
10 East Lothian 1,436 1,579 144 10.0
11 Falkirk 1,364 1,577 213 15.6
12 Orkney Islands  1,369 1,575 205 15.0
13 Moray 1,431 1,574 143 10.0
14 Renfrewshire 1,436 1,573 136 9.5
15 South Ayrshire 1,453 1,569 116 8.0
16 City of Edinburgh 1,448 1,564 116 8.0
17 West Dunbartonshire 1,399 1,560 161 11.5
18 North Ayrshire 1,452 1,554 102 7.0
19 Inverclyde 1,547 1,551 4 0.3
  Scotland Average 1,418 1,550 132 9.3
20 Perth & Kinross 1,404 1,537 133 9.5
21 Aberdeenshire 1,393 1,533 139 10.0
22 East Renfrewshire 1,415 1,528 113 8.0
23 Highland 1,427 1,527 100 7.0
24 West Lothian 1,391 1,515 124 8.9
25 Fife 1,385 1,499 114 8.2
26 Scottish Borders 1,356 1,492 136 10.0
27 Angus 1,317 1,462 145 11.0
28 Dumfries & Galloway 1,335 1,455 120 9.0
29 North Lanarkshire 1,321 1,453 132 10.0
30 Na h-Eileanan Siar 1,291 1,388 97 7.5
31 Shetland  Islands 1,261 1,387 126 10.0
32 South Lanarkshire 1,301 1,379 78 6.0

Without any other action we’d need a 7.5% council tax rise to cover costs next year. But there are options as to how we spend or save, and we would like your input to help develop these - for next year and beyond. 

Closes 11 Jan 2026

Opened 8 Dec 2025

Areas

  • All Areas

Audiences

  • Anyone from any background

Interests

  • Budgets and finances