At next Thursday’s full council meeting, councillors will consider signing off on a delayed launch of higher council tax rates for second homes and homes which sit empty long-term.
In a report before councillors at the meeting, officers recommend the tax be implemented from January next year.
In setting the budget for the 2026/27 financial year, the council agreed a 300% premium on council tax rates for such properties.
It was estimated the higher rates, enabled by a legislative change at Holyrood, would have brought in an extra £4m for the council during the year.
But after internal legal advice was sought, the council decided to backtrack on the increase eight days after its launch to undertake ‘further consultation and engagement’ on the policy.
Other Scottish local authorities went ahead with increases for second homes and long-term empty homes during the 2026/27 financial year, the first year it was possible.
Local authorities are free to set whatever rate of premium they want, with officers having originally proposed a 200% hike ahead of this year’s budget.
At present, owners of second homes and long-term empty residences pay a 100% premium, which was introduced in Edinburgh in 2024.
Councillors could still amend the premium charged.
After consultation with impacted homeowners, officers now recommend that the council continue with the hike.
Officers estimate £3m in expected revenue this year will not materialise due to the delay.
Councillors are set to consider the impacts of the shortfall on the budget, and measures to make up for it, at a finance meeting on September 24.
Officers assembled an integrated impact assessment based on consultation with affected property owners.
In it, officers found that affected owners felt that the council’s initial decision to apply the premium ‘lacked sufficient consultation or notice’.
In addition, they felt the premium increase was ‘punitive’ in nature, and that it represented unfair treatment of them.
Officers stated in the report that completing the impact assessment would “contribute positively to the Council’s having demonstrated paying due regard to relevant public equalities duties.”
Councillors will consider the report at next Thursday’s full council meeting.
By Joseph Sullivan Local Democracy Reporter
