SNP hopes for council tax deal with Greens

First Minister hopes to come to agreement and commitment to devolving more powers to councils

Nicola Sturgeon has said she hopes to come to a deal with the Scottish Greens on council tax reform.

However, opposition parties have warned that it is likely to impose an even greater burden on squeezed households.

Middle class families in Tayside and Fife are already under strain from paying more income tax than equivalent earners in England, as well as facing a third year of council tax rises amid the mounting cost of the weekly shop.

Speaking in Holyrood the day after the Budget, the first minister committed to working with the Greens to develop a new local tax.

The Tories said the pro-independence parties are preparing a “stitch up” for taxpayers.

Patrick Harvie, the Green leader in Holyrood, vented to the SNP leader at First Minister’s Questions yesterday about the absence of local tax reform in the Budget.

“There was nothing about genuine steps towards a replacement for the broken, unfair council tax, which the Scottish Government claims that it wants to end, and nothing about new ideas to help councils to raise money in new ways to fund the services that are needed,” he told Ms Sturgeon.

The SNP’s minority administration needs the support of another party to secure the passage of its 2019-20 Budget through Holyrood.

The Greens have done so the last two years, but refuse to enter formal talks without guarantees about scrapping council tax.

Ms Sturgeon replied: “I very much hope that we can come to an agreement that sees a commitment made to local tax reform and a greater commitment to the devolution of tax powers to local authorities. There is a willingness to do that, and I am sure that, as is normal, we will have between now and the final votes on the Budget lots of very productive discussions – or at least what I hope will be productive discussions.”

A cross-party commission in 2016 agreed reform is needed but did not identify a new system.

Mr Harvie also expressed anger at the “sleight of hand” deployed in the Budget for the local government settlement.

Finance Secretary Derek Mackay announced a real-terms increase in funding for local authorities to £11.1bn on Wednesday.

Mr Harvie said that claim “ignores the fact that the Scottish Government is forcing councils to use their resources to fund Scottish Government policies”.

The Glasgow MSP quoted research from the independent Scottish Parliament Information Service showing the “truth is a more than £300m cut to local services”.

Ms Sturgeon said the Scottish Government has given “extra money to local government to meet the costs of those (national) priorities.”

There was nothing about genuine steps towards a replacement for the broken, unfair council tax. PATRICK HARVIE

Picture: PA