Cosla Urges End to Council Tax Freeze and No Cap on Increases in Scottish Budget

Scotland’s local government body, Cosla, asserts that the upcoming Scottish Budget must lift the current council tax freeze and refrain from imposing limits on potential future increases. Katie Hagmann, who serves as the group’s resources spokesperson, stated that an increase in council tax is crucial because of the “need to protect vital services.” During an appearance on BBC Scotland’s Sunday Show, Social Justice Minister Shirley-Anne Somerville declined to confirm whether Wednesday’s Budget would signal the conclusion of the freeze. This policy had been unexpectedly unveiled last year at the SNP conference by former first minister Humza Yousaf, a move that caused frustration among councils who had not been forewarned. Ms Hagmann, an SNP councillor representing Dumfries & Galloway, noted that local authorities are “acutely aware” of the persistent cost of living crisis. Nevertheless, she indicated that raising taxes was not a preferred action for councils within a “complex landscape.” She declared: “We have been consistent and clear that there should be no freeze on council tax and, importantly, there should be no cap either, because this is very much for local decision-making.” She continued: “The last thing local leaders want to do is raise council tax in a cost of living crisis, we are acutely aware of that, but we also need to protect those vital services.” Ms Hagmann clarified that the absence of a cap would not automatically lead to substantial increases, even though Argyll & Bute council had previously voted for a 10% rise earlier this year, a decision it subsequently reversed. She further contended that financial resources were required to support health, housing, and other essential frontline services. She concluded by stating: “If we have a good settlement, a good budget, then that will affect council tax locally.” Shirley-Anne Somerville faced inquiries on The Sunday Show regarding reports indicating that the freeze’s termination would be declared. She responded: “The council tax freeze was an important part of last year’s budget because there was an exceptional push on a cost of living crisis and it was important that we took action on that. “I love reading the newspapers the week before the budget, but I am not going to comment on speculation.” The Scottish government’s choice to impose a council tax freeze last year provoked a strong negative response from councils, with certain local authorities, including Inverclyde, presenting their arguments to ministers. Ultimately, all 32 local authorities consented to the decision. The SNP had previously suggested increasing council tax rates by up to 22.5% for properties in higher bands last year, but they altered their strategy owing to the cost of living crisis’s effect on individuals’ finances. Somerville also refuted assertions in The Sunday Times newspaper that her recent announcement of winter fuel payments for elderly Scots had unfolded in a manner akin to an episode of the comedy “The Thick of It.” These funds, restricted to a single payment per household, are slated to be disbursed via a new Scottish Parliament benefit, which is not expected to be operational until late 2025. The newspaper implied that this policy was a reaction to Scottish Labour’s proposals to reinstate the payments, which the SNP claimed they had to abandon because of UK Labour government reductions in Scotland’s funding. Somerville commented: “I’m a great fan of the Thick of It but it had absolutely nothing to do with last week.” She added: “The first minister said many, many weeks ago that we were actively considering what to do with the winter fuel payment.” On Wednesday, Finance Secretary Shona Robison is scheduled to present the Scottish Government’s tax and spending plans, marking the first Budget since John Swinney assumed the role of First Minister. This Budget is being introduced amidst a context of severe public finances, partially eased by a £3.4bn increase resulting from UK government spending decisions. Robison stated that her Budget aims to achieve “progress for Scotland, by Scotland – laying the foundations for Scotland’s long-term success.” Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.