Moray Council approves 2025/26 budget

To support essential services, the council has agreed to a 10% increase in Council Tax for 2025/26, with indicative rises of 10% for 2026/27 and 6% for 2027/28. This decision aims to bridge funding gaps and sustain vital community services.

Budgeted funding from the Scottish Government and UK Government in the form of grants and non-domestic rates distribution totals just under £236.9m, which makes up around 80% of Moray Council’s budget.

Around £7.5m of savings have been agreed in total as part of the budget setting process, a full summary can be found on these at the end of this release. These have been achieved through efficiencies designed to improve service delivery across the region as the council continues its work to become more sustainable through long-term change.

The approved budget sets total expenditure at £294.197 million for 2025/26. This includes £4.704 million allocated for budget pressures in the upcoming year, including the increase in employers National Insurance Contributions; heating maintenance contracts; supply teachers required; and cyber security mitigation. A programme of digitisation is included to facilitate transformation and continued improvement.

One of the continuing priorities for the council is tackling poverty through investment in educational attainment. In this budget year £560,000 will be used to create an Intervention Fund for schools to target identified areas for improvement with a view to raising attainment.

Up to £250,000 will be invested in developing workforce changes to ensure pay and conditions are modernised and a comprehensive review of structures across services will contribute towards an efficient and affordable workforce.

Elsewhere, Library co-location proposals will be developed with an allocation of £90,000 and £143,000 will be released for climate related projects.

A provision of £6.3m is made for pay awards and other inflationary increases, with new burdens created by legislation requiring £4.6m, including increased payment to external ELC providers; additional funding for out of area learning; extension of provision of free school meals in primary schools; children’s mental health care; and children’s social care and adult health and social care Real Living Wage increases.

Moray Integration Joint Board (MIJB) decides how the Health and Social Care Moray budget is used, however the responsibility for setting the budget to be transferred sits with the council. It has designated £89.012 million to the MIJB to support integrated services that are crucial to the well-being of Moray residents.

Council Leader, Cllr Kathleen Robertson, said after full council set the budget: “I’m pleased that we’ve continued with our collegiate approach across the year to many issues including budget setting and financial processes. During the past year, both elected members and officers have been engaged behind the scenes discussing budget savings options and prioritising transformation of services. These discussions have been robust and productive as seen in the political agreement we have reached in the majority of the budget savings and in our overall approach to balancing the council’s budget.

“For the first time in many years we will be able to balance our budget without the need for using unallocated reserves. The Accounts Commission had highlighted that the use of unearmarked reserves was unsustainable and the collaborative work in the budget setting exercises have assisted us in addressing their concern.

“The council acknowledges the challenging economic environment for everyone and I’d highlight that the council also faces these challenges in terms of the increasing cost of providing services. Despite these challenges, the council remains committed to prudent financial management and long-term planning to ensure the sustainability of services for Moray residents. This involves continuing our path of transformation without compromising our ambition for improvement.

“As we continue to prioritise transparency and community involvement in our financial planning, I would encourage residents to stay informed and get involved in ongoing discussions about the future of local services.”