Moray Council outlines key themes shaping 2026/27 budget proposals
Moray Council has today set out the themes and financial considerations that will underpin its budget setting process for 2026/27, ahead of final decisions to be taken at a meeting of the full Council on 25 February 2026.
The updated Short to Medium Term Financial Plan, presented to councillors this week, highlights the continued financial pressures facing local authorities nationally, alongside the progress Moray has made in closing the budget gap forecast for 2026/27.
The report confirms that the Council has been able to significantly reduce its projected funding gap through a combination of savings already approved, further proposed efficiencies totalling £203,000, and early insights into the provisional Scottish Government settlement announced on 13 January 2026.
The report sets out the main themes that will guide decision making as the Council prepares its final budget proposals:
- Continuing financial pressure and uncertainty, including inflation, pay awards, and externally driven cost increases.
- Targeted savings and income generation measures, including updates to fees, charges and income budgets where achievable.
- Protecting essential services while identifying efficiencies through service redesign and best value approaches.
- Partnership working, particularly in relation to resourcing pressures within the Moray Integration Joint Board (MIJB) and compliance with national Real Living Wage commitments.
- Long‑term sustainability, ensuring decisions taken for 2026/27 align with the Council’s broader Transformation Strategy.
Together, these themes will shape the options presented to councillors when they set the 2026/27 budget in February.
Moray Council Leader, Cllr Kathleen Robertson, said: “This year’s financial planning reflects the reality that councils across Scotland continue to face significant pressures, recognising a slightly better settlement than expected doesn’t preclude financial prudence for future years. Moray Council has worked hard to reduce our projected budget gap and to identify savings that minimise the impact on communities and frontline services.
“As we move towards final budget decisions in February, our focus remains on long term financial sustainability, protecting the services people rely on, and making responsible choices in the face of rising demand and constrained national funding. We will continue to be open about the challenges and the opportunities ahead, and we thank residents and partners for their ongoing understanding and support.”
Council officers will now prepare a full suite of budget proposals for consideration by elected members, including recommendations on Council Tax, which was indicated in last year’s budget to be a 10% increase. Final decisions on the 2026/27 revenue and capital budgets will be taken by Moray Council on 25 February 2026.