Finance Secretary warns most local authorities plan council tax hike

Finance Secretary Derek Mackay yesterday warned that most local authorities in Scotland intend to raise council tax by 3 per cent.

Mr Mackay made the prediction when he appeared before the Scottish Parliament’s finance committee to discuss the Scottish Government budget.

The Finance Secretary was asked about the funding package to local government. The Scottish Government’s 201819 financial plan includes an increase in “core funding” for councils of £94 million with the option to raise £77m more 0 Derek Mackay: Most will increase rates by 3 per cent by setting council tax rates at the maximum 3 per cent.

Asked by the SNP’S Willie Coffey if he thought councils would raise more through the levy, Mr Mackay said: “I can’t give a government view. I can only give you the intelligence that I have that most councils are telling me, that they are intending to use that function and use the ability to raise council tax by up to 3 per cent.

“It is entirely a matter for them whether they do or not. And we will see how their budget cycles pan out in light of the extra resources that have been allocated to local government which gives them a real terms increase in resource and capital – a substantial increase in capital.”

Earlier, Labour’s Neil Bibby said many councils still believed they would have to make “significant cuts”.