Timescale for ‘fundamental’ council tax reform imminent, says Harvie

A timescale for “fundamental” council tax reform will be unveiled in the coming weeks, the co-leader of the Scottish Greens has said.

Patrick Harvie, who joined the Scottish Government as tenants’ rights minister as part of the Bute House Agreement in 2021, said “long term” council tax policies must be set out following the December Budget.

The timetable for reform is expected to be put forward during stage three amendments of the Budget Bill, the PA news agency understands.

Speaking to the Daily Record newspaper, Mr Harvie criticised the decision to freeze council tax, which was announced by First Minister Humza Yousaf at the SNP conference last year.

He said the move is “not sensible” as a long-term solution, saying instead that local government could see a shift in policy which would give them additional powers.

“We’ve had some success with additional tax powers for councils, like the workplace parking levy that Edinburgh is now looking at developing, or the tourist tax that a number of other councils are positive about,” he told the newspaper.

“Partly as a result of what happened, and the reaction to the freeze, there will be a timescale agreed for fundamental reform. Local government are keen for that. They are quite rightly concerned about how the freeze was announced and the impact that will have on them.

“They are keen on the idea that we actually act together on reform.

“The timescale is to be set out during the course of the Budget process.

“By the time we get to the final votes on the Budget, we expect to have details to be able to set out on the process.”

Mr Harvie also told the Record that the policy to freeze council tax “wouldn’t have been our choice”.

He added: “Not just in terms of what it is, but the way it was announced, with local government being blindsided by it.

“If the SNP has an instinctive feeling that people want something done about it, it has to go beyond the short-term.

“It’s not a sensible policy for the long-term. It results in a local tax system that is even more out of date and out of kilter.”

A Scottish Government spokesman said: “The Scottish Government has set aside £144 million in the Scottish budget to reach agreement, across local government, to deliver the council tax freeze support for households at a time when the cost-of-living crisis is putting significant strain on finances.

“We are committed to developing fairer, more inclusive and fiscally sustainable forms of local taxation and to re-energise our work to that end.

“We have convened a joint working group with Cosla on sources of local government funding, which is exploring a range of potential measures, including approaches to longer-term reform of council tax. It is important that we explore these proposals for meaningful changes in partnership with Local Government.

“Consultation is an essential and important aspect of public engagement, and the Scottish Government remains committed to consulting on all legislative proposals.”