Cash-strapped councils urged to hit families with 3pc rise

SCOTS families face council tax hikes of 3 per cent again next year after the SNP urged local authorities to use their powers to raise cash.

Ministers told council chiefs that the increase, from next April, could raise an extra £80million for local services.

It would add an extra £36 to the average council tax bill in Scotland – rising to an extra £88 for larger homes.

It follows a series of reforms which have already added hundreds of pounds to some council tax bills and a Budget that leaves Scots earning more than £27,000 facing the highest income tax rates in the UK.

The Scottish Government urged councils to increase bills as it last night revealed how it will distribute £11.1billion of funding between the 32 local authorities. Council leaders claim it amounts to a real-terms cut in their cash for day-to-day services.

A spokesman for the Scottish Conservatives said: ‘The SNP thinks it can short-change local authorities and council tax payers will pick up the slack. That’s irresponsible government from an SNP administration that thinks it can raid people’s pockets at will.

‘Right across Scotland, voters are getting fed up at this high-tax, anti-business SNP government.’

Announcing the funding deal last night, Finance Secretary Derek Mackay told the councils they could ‘generate up to an additional £80million to support the delivery of essential local services’ if they impose another 3 per cent rise.

This year, all 32 local authorities imposed the maximum 3 per cent increase allowed by the Scottish Government.

The average band D council tax bill in Scotland is currently £1,208. A 3 per cent increase would see this rise by £36, to £1,244, making it 8.3 per cent higher than the average bill of £1,149 in 2016-17.

The average band H home would see an increase from £2,960 to £3,049 if a 3 per cent hike was imposed. This is 33 per cent higher than the £2,297 charge in 2016-17.

The distribution of the £11.1billion includes £1.43billion for Glasgow, £839.6million for Edinburgh and £372.6million for Aberdeen.

The SNP said it represents a £210million increase in realterms funding to local authorities. However, council umbrella group Cosla claims that, when ring-fenced spending is excluded, this amounts to a £237million cut in core funding.

Cosla resources spokesman Gail Macgregor said: ‘The issuing of the circular today, basically confirms what we already knew, that this is a severe cut to the core budget that provides the vast majority of our essential services.

‘This is bad news for communities – the impact on jobs and services is significant. The budget does not recognise our role as an employer, procurer and deliverer of essential services.

‘If this settlement is not changed it will mean substantial job losses in places where local government is the main employer.’

Mr Mackay said: ‘The Scottish Government has continued to ensure that our partners in local government receive a fair funding settlement, despite further cuts to the Scottish Budget from the UK Government.

‘If local authorities choose to use their powers to increase council tax by up to 3 per cent, they can generate up to an additional £80million.’

The First Minister has said she will consider crippling council tax hikes proposed by the Scottish Greens in return for their support for the SNP’s Budget.

Scottish Labour finance spokesman James Kelly said: ‘Rather than insult people with spin, Derek Mackay should be delivering a Budget that delivers the radical investment local services need.’

‘Substantial job losses’