Consultation on plans to put up council tax for higher bands is launched

A consultation seeking views on increasing council tax by as much as 22.5% for the most valuable homes in Scotland has been launched.

News of the plans leaked earlier this month, with the Daily Record newspaper obtaining a Cosla report, leading to Dave Moxham of the STUC claiming the proposal is “tinkering around the edges” when the whole system should instead be scrapped.

If implemented, the plans would see council tax for homes in bands E, F, G and H increased on a sliding scale of 7.5%, 12.5%, 17.5% and 22.5%, to address concerns about the fairness of the charge.

Some 28% of properties in Scotland are believed to be in the bands that would be impacted, but only 0.5% of them are in the highest council tax band.

After the increase, the Scottish Government said, the average payment in the highest band would be £4,251 per year.

As the consultation was launched on Wednesday, public finance minister Tom Arthur said: “We have listened to calls for the council tax system to be made fairer, as presently more of the burden falls on those in the lower bands when considered as a proportion of the value of their property.

“The changes would only affect around a quarter of properties and even after they are taken into account, average council tax in Scotland would still be less than anywhere else in the UK.

“We know that many people are struggling with their finances and our council tax reduction scheme is there to ensure nobody has to pay a council tax bill they cannot be expected to afford, regardless of what band they are in.

“I would encourage anyone who has views on these proposals to complete our consultation before it closes on September 20 2023, to help us determine if they should be taken forward.”

Katie Hagmann, resources spokeswoman at Cosla, said: “For many years there have been calls to make the council tax system fairer.

“We are pleased to be working jointly with the Scottish Government to explore ways that we can achieve this.

“A fairer and more progressive council tax is what the proposals in this consultation aim to do.”

Scottish Tory local government spokeswoman Liz Smith said the “bombshell proposals” would “terrify people struggling to cope with the global cost-of-living crisis”.

She added: “Rather than even considering these eye-watering hikes, SNP-Green ministers should finally give our councils the fair funding deal they deserve, which the Scottish Conservatives have repeatedly called for.”

Scottish Labour local government spokesman Mark Griffin accused the Scottish Government of “asking ordinary Scots to foot the bill for its own economic failure”.

“There is no need to consult on it- this bombshell will mean even more financial sacrifice for people already facing impossible decisions.

“Scots struggling with rising housing costs should be getting support from their Government. Instead, councils have had their budgets slashed by the SNP and everyone else has been left to pick up the tab.”