Council tax will remain at the current level of £1,210 for a band D property, despite strong opposition at last week’s council meeting.
Councillors heard that the predicted expenditure for 2016/17 is £199.7 million, while income from the government grant and council tax is £7.6 million less, at £192.1 million.
Labour group leader Councillor Derek Milligan said: “We can’t continue to have council tax frozen and still provide the same services. So we are going to see a decimation of our services and our communities.”
Speaking after the meeting, SNP Councillor Kelly Parry said: “Over the nine years the ‘freeze’ has saved Midlothian band D council tax payers £1,800 in total.
“With the Scottish Government compensating Midlothian Council £6.3 million for the coming year this means that we can ensure we protect the lowest paid workers across the region and the most vulnerable. The alternative was a 16 per cent rise.”
Council was advised of a range of measure being taken to address the shortfall, leaving a gap of £3.873 million still to be tackled.
A special council meeting will take place on March 8.