Families face hike in bills as services cut

‘Councils have their hands tied’

FAMILIES face another raid on their earnings as Scots councils warn they will have to put up taxes to fund pay rises for their staff – while also cutting services.

Council tax bills are set to rise by up to £92 a year from April to help local authorities fund a 3 per cent increase for most staff.

Households were warned of the increases by council umbrella group Cosla, which also said public services will face further cuts to fund the deal. It is another blow for hard-pressed families set to see their pay packets shrink as a result of the SNP’s controversial income tax rises.

The SNP’s Budget deal with the Greens means 1.1 million Scots will pay higher income tax than those earning the same elsewhere in the UK.

The Scottish Government’s pay policy states every public sector worker earning up to £36,500 should get a 3 per cent rise from April, or 2 per cent for those earning more.

But Cosla says councils have not been offered enough funding to cover the rises.

Last year, the SNP ended the council tax freeze and allowed annual rises of up to 3 per cent. Cosla’s resource spokesman Gail Macgregor said: ‘We acknowledge the additional resources secured into the settlement for this year following extensive lobbying by Cosla. However, this will not negate all of the challenges we still face.

‘Quite simply, with no money in the settlement from Scottish Government for pay, any pay rises for council workers can only come from cuts to services or council tax rises.’

Scottish Tory finance spokesman Murdo Fraser said: ‘Ultimately, many councils are in a no-win situation and have their hands tied thanks to the SNP funding settlement.’

Scottish Labour’s finance spokesman James Kelly said: ‘Hardworking people in the public sector deserve a pay rise after years of Tory and SNP austerity and declining living standards – but [Finance Secretary] Derek Mackay hasn’t provided councils with the money to deliver it.’

Yesterday, Mr Mackay said: ‘In 2018-19 councils will receive funding through the local government finance settlement of £10.7billion.

‘This will provide a cash terms increase in funding for local revenue services of over £174million – a 1.8 per cent rise, and capital spending of £89.9million – an increase of 11.4 per cent.

‘This delivers a real-terms boost in both revenue and capital funding.

‘As well as this increased funding, councils have the flexibility to increase council tax by up to 3 per cent.’

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