Councillors have agreed how the new £2m Participatory Budgeting (PB) programme will fund the local neighbourhood projects chosen by residents.
Each of the Council’s 17 electoral wards will benefit from a share of £1.7m over three years, with residents directly deciding how to spend the portion of Levy income in their local ward via a new online voting portal.
It will launch through a one-year pilot programme to test the process and identify areas for future improvements, with £20,000 available per ward in the 2026/27 financial year, followed by the remaining funds for two-year projects to take place in 2027/28 and 2028/29. The share of the fund wards receive is influenced by local need and population, with amounts going to different wards recognising where some are more deprived.
Each PB cycle will be delivered in three stages:
- Idea generation: Communities and residents will express how they want the money to be spent in their ward (local plans will be considered as part of this process, where these exist).
- Project proposals: Community organisations and charities will make funding applications in response to the ideas and priorities generated.
- Decision-making: People can vote to decide which specific proposals residents want to see funded in their ward – residents will only be allowed to vote on projects in the ward they live in.
The final selected projects in each area will be awarded to external organisations for delivery.
Also included in the overall £2m fund is £300,000 to administer the programme, including staff time to establish and manage the process, alongside promotion and engagement activities. The programme team will work to establish partnerships with community organisations, including community councils, to deliver and champion local activity.
The scheme – which is the first of this scale in the UK – is part of the £90m+ package of transformative funding over the next three years, agreed in February, to sustain and enhance Edinburgh’s reputation as one of the most beautiful and enjoyable destinations in the world.
The initiative has been designed to empower the city’s local communities, increase civic engagement and improve Edinburgh’s neighbourhoods in a way that addresses local priorities.
The programme’s proposals have been developed by Council officers, informed by feedback from consultation with elected members and community groups. The independent Edinburgh Visitor Levy Advisory Forum has also been consulted and provided feedback and recommendations.
In accordance with the Visitor Levy (Scotland) Act (2024), funds raised by the levy must be reinvested in local facilities and services substantially used by business and leisure visitors. However, participatory budgeting may also benefit residents and those who work and study in Edinburgh.
Culture and Communities Convener Margaret Graham said: “Some of our communities have already experienced and benefitted from other PB programmes in Edinburgh, but this is the biggest and first to be delivered across the whole of the city.
“We’ve specifically designed this programme to complement existing schemes, and we’re proud that residents in every ward across the city will soon benefit from an equal share of some of the funds provided by the Visitor Levy. This means visitors to Edinburgh are contributing towards local projects that benefit us all in the places we live, work and visit ourselves.
“Given the scale of the programme, we’re taking a trial approach for the first portion of funding, which will allow us to closely monitor how well the scheme runs and make improvements for future years. The proposed approach is the result of a huge amount of engagement with community groups – and I’m very pleased that this level of engagement will continue as we review and evolve the programme.
“There are going to be plenty of opportunities for people to participate and have their say on the kinds of projects they’d like to see improve their local areas.
“I’m looking forward to seeing the first sets of project ideas take shape, and how our communities engage with this process and choose to invest in their local areas so we can continue to improve every corner of our beautiful capital city.”
Edinburgh’s Visitor Levy scheme was formally agreed in January 2025.
The levy applies to paid overnight accommodation booked after 1 October 2025, if the stay takes place from 24 July 2026 onwards. It is a 5% payment on the accommodation-only cost and applies to the first 5 nights’ stay. The scheme is projected to raise up to £50 million a year to invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to visit and live.
The PB paper was heard at Culture and Communities Committee on 15 May. You can view the meeting on our webcast.
