MAXIMUM INCREASE ON EVERY COUNCIL TAX BILL
After SNP’s punishing income tax grab...
EVERY family in Scotland will see their council tax soar next month, with total bills rocketing by £225million in just over a year. all 32 of the country’s local authorities have announced that they will raise charges by 3 per cent from april.
Councils have been encouraged to increase bills by Finance Secretary Derek Mackay.
Combined with an overhaul of rates and bands, plus rises introduced last april, it means an extra £225million will be taken from the pockets of families.
Business leaders warn the rises will heap even more pressure on household budgets, which could further damage Scotland’s underperforming economy.
this latest 3 per cent increase will add up to an extra £92 on to
annual council tax bills – at a time when middle-class families are also facing income tax rises.
David Lonsdale, director of the Scottish Retail Consortium, said: ‘Consumer spending, a mainstay of Scotland’s economy, faces headwinds in the months ahead as households contend with increases in council tax, income tax and higher employee pension contributions.
‘Family budgets are already under strain and do not stretch as far as they used to with inflation continuing to outstrip growth in wages.’
He added: ‘A quarter of a million Scots rely on the retail industry for their employment and, with retail sales lacklustre and consumer spending squeezed, politicians ought to be wary about heaping further pressure on family finances over and above those already planned.
‘With half of VAT receipts being assigned to Holyrood next year,
‘With SNP you pay more and get less’
our politicians have a direct stake in facilitating a flourishing retail industry.’
Clackmannanshire yesterday became the 32nd Scottish local authority to impose a 3 per cent increase in council tax.
The Scottish Government has disclosed that the move will add £77million to council tax bills.
Reforms to rates and bands introduced last April, and council tax rises introduced at the start of this year, were estimated to bring in around an extra £150million.
The average council tax bill north of the Border is £1,069, so a 3 per cent rise will add £32 to bills. But rates vary between councils and many charge much more.
Properties in Band E are charged up to £1,617, so bills could rise by up to £48.50, while Band F households pay up to £2,029, which could soar by up to £61.
Those in Band G homes pay up to £2,440, meaning an increase of £73, while Band H families who now pay up to £3,053 could see up to £92 added to their bills.
The rises come on top of band reforms last year which meant Band E bills increased by up to £106, Band F by £207, Band G by £335 and Band H by £517. At the same time, councils claim they have not been given enough cash to fund a 3 per cent pay rise for staff, which could spark more cuts to services.
Scottish Tory local government spokesman Alexander Stewart said: ‘Hard-working families are now going to pay more council tax. Yet thanks to the SNP’s decision to slash funding to local authorities, vital public services will only get worse.
‘It really does prove once and for all that under the SNP you pay more but get less.’
When delivering his Budget, Mr Mackay encouraged local authorities to put up council tax by 3 per cent to bring in extra revenue.
Scottish Labour spokesman James Kelly said: ‘Derek Mackay is pulling a con trick on cuts.
‘He has hammered council budgets and then tells councils to raise taxes to cover the cuts. The reality, however, is that these council tax rises would be a drop in the ocean compared to the level of cuts councils are facing.
‘Local government in Scotland must be re-empowered, with more economic powers of their own, and must receive proper funding from central government.’
Gail Macgregor, resources spokesman for council umbrella group Cosla, said: ‘I welcomed the additional resources that were agreed for the local government settlement, but at the same time highlighted the significant pressure local government faces, particularly from pay and increasing demand for essential services.
‘As councils set their budget we are seeing the reality of this and difficult choices need to be made. Councils will do everything they can to manage pressures through savings but with income generation restricted by the Scottish Government there is often little scope for manoeuvre.’
A Scottish Government spokesman said: ‘The local government finance settlement this coming year is £10.7billion and councils will raise an additional £77million by increasing council tax by 3 per cent, following a nine-year freeze.
‘Budget decisions, including council tax and staff pay agreements, are for individual authorities but their funding will increase next year by almost £342million.
‘Our income tax proposals will see 70 per cent of Scottish taxpayers pay less income tax next year for an unchanged income... And we have reduced business rates and funded rates relief of around £720million in the coming year, including lifting 100,000 businesses out of rates altogether.’
Comment – Page 18
‘Mackay pulling a con trick on cuts’