Householders prepare for hike in council tax

FOLK across Scotland are bracing themselves for higher council tax bills as local authorities use new powers to increase rates.

The Scottish Government is allowing councils to raise council tax by up to 3% without penalty for the first time since 2007.

Eleven councils – Western Isles, Midlothian, Edinburgh, Borders, East Renfrewshire, Moray, Shetland Islands, Angus, Glasgow, Fife and Highland – voted to raise council tax by 3%, costing a typical billpayer £3 to £4 a month.

So far only three councils – Labour-run South Lanarkshire, Inverclyde and Renfrewshire – have voted to continue with a freeze.

Aberdeenshire Council will raise its Band D council tax by 2.5% and there is speculation that Aberdeen City Council will opt for a freeze when it sets its budget next week.

All councils will have set their budget by March 2.

The rises so far agreed mean that households will be paying between £28 and £37 a year more for their council tax bill, depending on where they live. Councils argue the increase allows them to balance the books without cutting back services.

Fife Council said its increase would raise £4.4m towards £25m of savings which had been identified, while outlining additional investment of £5.4m in local facilities and services. However, due to a decision in Holyrood, about a quarter of households will pay more regardless of their local council’s decision.

Bills for properties in Bands E to H will rise automatically from April through national changes to the way the council tax is calculated which have been made by the Scottish Government.