Argyll and Bute and Inverclyde may ditch council tax raise
- Published
Argyll and Bute Council headquarters at Kilmory Castle
Council tax looks set to be frozen across the whole of Scotland as two councils reconsider planned increases.
Argyll and Bute had announced a 10% rise while Inverclyde backed an 8.2% increase.
They will now ask councillors to vote for a freeze in return for additional funds from the Scottish government.
Bills have already been issued in Inverclyde but the council leader is recommending a one-off credit for taxpayers.
Finance Secretary Shona Robison said, if approved, it meant households across the whole country would benefit from help during the cost of living crisis.
First Minister Humza Yousaf made the surprise announcement of a 12-month council tax freeze at the SNP conference last October.
The Scottish government said it would give local authorities £147m in compensation, as well as a share of £62.7m if they implemented the policy.
Most councils voted for a freeze but Argyll and Inverclyde said increases were the only way to maintain jobs and services.
Argyll, which was the first council to break ranks, said the increase would help overcome a £40m funding gap.
But the authority said it had now been offered extra money for severe weather costs, and freezing the tax rates would help unlock £6.26m in extra funds.
In Inverclyde, council leader Stephen McCabe will recommend a rebate that will have the same effect, in return for an assurance there will be "no nationally imposed" council tax freeze or cap next year.
First Minister Humza Yousaf announced the freeze at his party conference in 2023
Argyll and Bute Council leader Robin Currie said he was persuaded to reconsider following discussions with the Scottish government in recent weeks.
He said an extra £2.3m had been offered to support the impact of severe weather last autumn, and a council tax freeze would release other government funding, meaning the authority stood to gain an extra £6.26m in total.
Mr Currie said: "We made a very strong case for that to the Scottish government at a meeting we asked for in January this year.
"We have continued to press ministers ever since on a range of other issues. We are of course delighted that they have listened to our calls for severe weather support, and that they have now provided for Argyll and Bute that extra assistance that we are fighting for."
Mr Currie said he would now be recommending a council tax freeze at a special meeting of the council next month.
The decision by both Argyll and Bute and Inverclyde councils to reconsider putting up council tax bills will be welcomed by ministers as a victory not just for government but for local taxpayers too.
Some councillors however remain frustrated by the way the council tax freeze has effectively been forced upon them without consultation.
They view it as a regressive policy that doesn't benefit the lowest income households.
One of the conditions of Inverclyde's agreement is that a tax freeze won't be imposed on local authorities in the 2025/26 financial year.
But with an election approaching, politics has a part to play too. No-one wants to be punished at the ballot box for putting up bills unnecessarily.
Earlier this month Inverclyde Council leader Stephen McCabe wrote to the Scottish government offering a compromise over his authority's plans for an 8.2% rise followed by a 6% rise the following year.
Mr McCabe proposed a one-off rebate for 2024/25 which would have the same effect as a council tax freeze, provided the Scottish government made the extra funding available to councils on a recurring basis.
Finance Secretary Shona Robison said that would only be acceptable if any increase in the following financial year - 2025/26 - was calculated based on the amount households were paying currently, rather than an amount that included the 8.2% increase.
Mr McCabe has "reluctantly" agreed to the condition, and would recommend it subject to confirmation that there will be no national council tax freeze or cap next year.
Ms Robison said the freeze would benefit people in every part of Scotland during the ongoing cost of living crisis.
"If the councils proceed with these decisions, council tax will effectively be frozen across the whole of Scotland, with households in 31 of Scotland's 32 local authorities having a simple freeze in their council tax next year, and those in Inverclyde receiving a one-off rebate to reverse the impact of their 8.2% increase," she added.
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- Published29 February
