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Councillors in the Scottish Borders have said they were left with no choice but to put up council tax by 10% from April.
They will meet to confirm the proposed increase – which will generate an additional £7m – later this month.
The authority received an additional £19m from the Scottish government for 2025/26 but finance officers said most of that would be used to meet commitments to the likes of the Real Living Wage and a rollout of free school meals.
Council leader Euan Jardine said the rise – which will see payments for a band D property rise from £1,356 to £1,491 – was an “extremely difficult decision” which was needed to protect vital services.
The draft revenue and capital budget proposals were developed by a cross-party group on Scottish Borders Council (SBC).
Last year council tax was frozen in the Scottish Borders in line with a Scottish government promise and in return for extra funding.
However, that restriction is lifted in April, prompting speculation some authorities could announce big rises.
Mr Jardine said: “It’s an extremely difficult decision but we didn’t get into politics to sit back and make easy decisions.
“Unfortunately, where we are at the moment fiscally, tough decisions have to be made.
“It is not about playing politics with communities it is about doing the right thing so we can sustain services in communities.”
He said all they were asking was for people to “dip in their pocket that little bit more” to keep services running.
He said they understood the financial pressures facing households but also recognised how many residents depended on the council for “essential services”.
Mr Jardine said the rise could safeguard education, social care, and support for the most vulnerable while allowing investment in schools, roads and community projects.
“Our focus is not just on the present but on building a sustainable, thriving future for our communities,” he said.
“These decisions are never easy, but by acting now, we are putting the council and our region on a stronger footing for the years ahead.”
SBC is led by a Conservative-Independent alliance but it involved opposition councillors in its budget-setting process.
It also gathered the views of more than 1,000 people in the region via consultation on its spending plans.
The draft financial plan will be considered at a full council meeting on 20 February.