SNP’S GREEN LIGHT FOR HUGE HIKE IN COUNCIL TAX

Scots face highest bills in ten years after Minister allows councils to raise levy by 4.8%

SCOTTISH households are about to be hammered with the highest council tax hikes the country has faced in more than a decade.

An investigation by The Scottish Mail on Sunday reveals some local authorities are planning to increase council tax by 5 per cent – more than double the rate of inflation.

That would mean the annual bill for a typical Band D home rises by £63 to £1,314, while owners of bigger homes would see their bills rise by more than £150.

Finance Secretary Derek Mackay, who will set out the SNP’s latest Budget on Thursday, has already decided that council tax increases should be capped at 4.84 per cent.

This is the highest rise since the SNP came to power in 2007.

But some councils are planning to go further, in a devastating blow for already hard-pressed families.

The Scottish Government has already put up income tax bills and the amount paid by businesses.

Last night, critics condemned the plans by Nicola Sturgeon’s party to give the green light to increased tax bills .

Harry Fone, of the TaxPayers’ Alliance, said: ‘A massive surge in rates would be a disgrace. Scottish taxpayers are already paying for a 50-year high tax burden – to add an inflation-busting council tax rise would be a slap in the face, especially when council tax is already among the most hated taxes.

‘Plenty of councils across the UK are able to keep rates down without slashing frontline services.

‘All councils should be encouraged to follow suit and a strict restriction on rate rises would be an excellent start.’

Mr Mackay’s unveiling of his Budget – delayed because of December’s general election – will include a settlement for councils.

Late last year, the Accounts Commission spending watchdog revealed that Scotland’s councils had suffered a real terms funding drop of 7.6 per cent since 2013-14, and now face a financial black hole of £500 million.

The Nationalists’ popular council tax freeze came to an end in 2017.

Initially, increases were capped at 3 per cent. But this rose to 4.74 per cent last year – and will now be increased again this year.

It leaves Scotland’s cash-strapped local authorities with a difficult choice between axing services and demanding more money via residents’ council tax bills. Last week, we contacted every council in Scotland to ask about their plans to raise tax.

Most local authorities said it was too early to say what course of action they would take – but some made it clear that eye-watering tax increases were sadly inevitable.

A spokesman for East Lothian Council said: ‘Our administration’s draft budget proposals for 2020-21 were discussed at our cabinet meeting on January 21.

‘They contain a proposal to increase council tax in East Lothian by 5 per cent. This is based on a number of assumptions regarding the draft Scottish Government allocations and other factors.’

Any move by the council to raise tax above the Finance Secretary’s 4.84 per cent cap would put the authority on a collision course with the Government.

Meanwhile, a spokesman for Midlothian Council said: ‘Our planning assumption has been a 4.79 per cent increase in council tax, but we understand there is some anticipation the government’s cap will rise to 4.84 per cent.’

Last night, the Scottish Government confirmed that councils would be given permission to raise tax by up to 4.84 per cent.

It said this was effectively a 3 per cent rise – the previous upper limit – but had increased in line with inflation. Speaking yesterday ahead of the Budget, Mr Mackay described the increase as a ‘3 per cent in real terms’ rise.

He said: ‘We will provide certainty for local government and vital public services.

‘Despite the delay to the UK Government announcing its Budget, we will confirm individual local authority funding allocations, having already announced that we are giving them the flexibility to increase their council tax levels by up to 3 per cent in real terms.

‘We will not stand by while the UK Government’s benefit cuts are hitting the poorest in Scotland, so we will continue to mitigate the worst effects of these cuts to support low-income households and tackle child poverty head on.’

Mr Mackay added: ‘I am focused on delivering a Budget that promotes inclusive economic growth and puts wellbeing at the heart of our economic strategy, to ensure as many people as possible across the country benefit.’

‘A massive surge would be a disgrace’