Tories hit out at ‘eye-watering’ bill increases under mansion tax plans

Plans for a so-called mansion tax for properties worth £1 million could impose “eye-watering increases” in council tax for some Scots while only raising a “tiny amount” more for local councils, the Tories have warned.

Conservative finance spokesman Craig Hoy hit out at the Scottish Government after modelling for two new council tax bands was published.

While homes are currently put in bands A to H for council tax purposes, the change would see Band I created for properties classed as being worth between £1 million and £2 million.

Properties worth more than £2 million would be in Band J.

Residents in such homes could find themselves having to pay an annual council tax bill of “around £4,770” for Band I, with this rising to “around £7,650” in Band J, the modelling shows.

The Government report noted Band J charges could be “around £3,600 more per year” than the current highest charges.

The paper, which was based on illustrative rates, went on to state the new bands “are estimated to raise between £12 million and £16 million per year in total across Scotland” – with this cash to be kept by Scotland’s councils.

Mr Hoy however accused the Government of being “hellbent on pressing ahead with these punitive measures that will deliver eye-watering increases in council tax bills for many Scots”.

He said the Government papers had “revealed the tiny amount it will raise for our struggling public services”.

He continued: “Introducing new taxes is the nationalists’ only answer to try and plug the £5 billion gap they have created in Scotland’s finances.

“Hard-pressed Scots have had enough of always paying more but getting less in return when it comes to local services.”

Demanding action from the First Minister, Mr Hoy said: “Swinney needs to ditch these performative proposals and instead focus on finally delivering a fair funding deal for cash-strapped councils, by cutting his ballooning benefits bill.

“These plans could also do lasting damage to the housing market and put off people from investing in Scotland, which would be a hammer-blow for Scotland’s economy which is already stagnating under the SNP’s high-tax policies.”

A Scottish Government spokesperson said: “The Scottish Government has delivered a range of improvements to make council tax fairer and more affordable, including supporting those on the lowest incomes through the council tax reduction scheme, with around 460,000 households saving £900 per year on average. Ministers have also enabled councils to increase charges for second properties.

“The introduction of a mansion tax on the most expensive properties will raise millions in additional funding each year for local public services by requiring those who have the most to contribute more.

“Council tax reform requires political consensus and the Scottish Government is working cross-party to build a shared agreement on the future of council tax in Scotland.”