Council tax rises of up to 22% proposed for Scotland

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Under the plan the average payment in the top council tax band would rise to £4,251 per year

The Scottish government has proposed raising council tax by as much as 22.5% for homes in higher bands.

Rates for homes in bands E, F, G and H would be increased on a sliding scale of 7.5%, 12.5%, 17.5% and 22.5% under the plans, which were first leaked to the press last month.

The Scottish government said it was aiming to make taxation fairer.

But the "bombshell proposals" have been criticised by opposition MSPs.

Details of the plans were revealed by the Daily Record, external newspaper last month after it obtained a Cosla report.

The proposals have now been formally unveiled by the government, with a consultation being held to allow the public to give their views.

Scotland's council tax bands, ranging from A to H, are based on a property's assumed capital value as of 1 April 1991, while newer properties are assigned a nominal 1991 value.

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

The Scottish government said the average payment in the highest band would rise to £4,251 per year.

STUC deputy general secretary Dave Moxham said the plan was "tinkering around the edges" when the whole council tax system should instead be scrapped - which the SNP has previously pledged to do.

Public consultation

As the public consultation, external was launched on Wednesday, Public Finance Minister Tom Arthur said too much of the council tax burden currently fell on people in the lower bands.

He added: "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."

Mr Arthur said the government's council tax reduction scheme ensures "nobody has to pay a council tax bill they cannot be expected to afford, regardless of what band they are in".

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

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Public Finance Minister Tom Arthur says the government has listened to calls for fairer taxation

Cosla resources spokeswoman Katie Hagmann said the aim of the proposal was to create a "fairer and more progressive council tax".

But Scottish Conservative 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."

Scottish Labour housing and local government spokesman Mark Griffin said: "Once again the SNP is 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."