The budget was agreed at a full council meeting on Thursday 26 February, following consideration of detailed three-year plans submitted by four political groups.

The council had previously identified a funding gap of £34.8 million over the next three financial years, driven by inflation, nationally negotiated pay awards, a forecast real-terms reduction in government funding, and growing demand for services such as social care.

To close this gap, the council will introduce a range of revenue-raising measures alongside the Council Tax increase, including higher fees and charges for leisure facilities, licensing, and waste services.

Savings and efficiencies totalling £4.18m will be delivered in 2026/27, rising to approximately £9.76m by 2028/29, many of which were informed by a public budget consultation held in late 2025.

The budget also directs significant new investment towards key priorities. An extra £5.32m will be delegated to the Dumfries and Galloway Integration Joint Board to support adult social care workers receiving the Real Living Wage, with a further £2.8m set aside for an Adult Social Care Change and Savings Plan. Nearly £928,000 has been committed to tackling poverty and supporting residents most affected by the cost-of-living crisis, while around £916,000 will fund local priority initiatives including the reinstatement of layby bins and investment in community assets.

The approved Capital Investment Strategy includes funding for major projects such as the Whitesands Flood Protection Scheme in Dumfries and the Stranraer Marina redevelopment. Funding has also been earmarked to progress the proposed Newton Stewart Flood Protection Scheme, the Dumfries Academy and Loreburn Primary school campus project, improvements to the Thistle Grove travellers’ site, and initiatives under the Borderlands Growth Deal.

Dumfries and Galloway Council convener Councillor Katie Hagmann said: “Setting a balanced budget that delivers for our communities across Dumfries and Galloway is always a challenging task.

“All councils across Scotland are facing tough financial decisions, and locally we have worked hard to balance these pressures. The priority was to protect the vital frontline services that people rely on every day and to invest in the areas that make a real difference in our residents’ lives. 

“We want to ensure that the services our communities depend upon are safeguarded, and that our budget reflects the priorities expressed by local people. We are immensely grateful for the key role that members of the public played in helping to shape this budget – their feedback during the budget consultation last autumn guided us in making these difficult choices.

“Increasing Council Tax by 8.5% was not a decision taken lightly. However, councillors decided that this increase – alongside required savings – is necessary to maintain the essential services and support our council provides, across Dumfries and Galloway, all while keeping our finances on a sustainable footing.” 

Budget plans and Council Tax levels for 2027/28 and 2028/29 remain indicative and will be confirmed in advance of those financial years. Under Scottish legislation, the council is required to set a balanced budget and fix its Council Tax before mid-March each year.