Yousaf calls on Argyll and Bute to think again on ‘unjustifiable’ council tax hike
First Minister Humza Yousaf has called on councillors in Argyll and Bute to reconsider imposing an “unjustifiable” 10 per cent increase in council tax bills.
The plea came as finance secretary Shona Robison insisted the Scottish Government would not punish local authorities who reject the proposed council tax freeze.
Last week Argyll and Bute Council became the first local authority to reject the Government’s council tax freeze plans.
This comes after Ms Robison announced there would be £62.7 million in extra funding for local government – but this will only apply to those who agree to the Government’s council tax freeze. This is on top of the £147m allocated in the initial 2024/25 budget in December.
Mr Yousaf confirmed the Government had written to council leaders in the area, offering “further conversations” with them around funding.
He said: “For those councils like Argyll and Bute, who I think unjustifiably raised their council tax in a cost-of-living crisis, they will have to answer to their constituents.”
The First Minister added: “I think we will get a council tax freeze, I would hope, right across the country, because we will continue to engage with Argyll and Bute. I think they should reconsider.”
Ms Robison earlier told the BBC: “This isn’t about punishing councils – it’s about recognising that taking together the funding that we’re providing, the additional funding, is nearly £210m.
“I don’t think it’s unreasonable that council taxpayers see some of the benefit of that. We believe that at a time when rising prices are putting significant strain on household finances, the council tax freeze gives some support to households over the coming year.”
Ms Robison said local government was getting a “larger slice of a smaller cake” as the proportion of the Governsay ment’s Budget being given to councils is rising from 31 per cent to 32 per cent.
She also challenged the argument that a council tax freeze would not help those on the lowest incomes during the cost-ofliving crisis.
Child Poverty Action Group has previously claimed the council tax freeze will make “little difference” to the poorest households in Scotland, as they are already exempt from paying council tax.
The finance secretary said: “As a proportion of their income, those on the lowest incomes will benefit. Council tax represents a larger proportion for those on lower incomes on top of the council tax reduction scheme for those who cannot be expected to pay council tax.”
However, opposition parties the actions of the Government towards Argyll and Bute Council showed it was in fact punishing councils who did not comply with its council tax freeze policy.
Liz Smith, the Scottish Conservatives’ finance and local government spokeswoman, said: “Shona Robison herself admitted that the SNP Government’s funding for the council tax freeze was nowhere near enough and left local authorities in limbo about their budgets.”