Councils rebel over Humza’s tax freeze
Humiliation for Yousaf as local authority chiefs threaten to REFUSE to honour his promise not to increase council tax
HUMZA YOUSAF is facing humiliation as furious local authorities warn they may not honour his pledge to freeze council tax.
The First Minister made the eye-catching promise of a freeze for hard-pressed families at the SNP’s autumn conference.
However, a council rebellion is looming because power to set the tax remains with local authorities – and they are adamant that the Scottish Government has not offered enough cash to cover the cost of the freeze.
Now senior councillors from all parties – including the SNP and Greens – have written to Finance Secretary Shona Robison setting out their ‘significant concerns’ over funding.
The letter from council umbrella group Cosla – a copy of which has been obtained by the Scottish Mail on Sunday – contains a veiled warning that councils may not back Mr Yousaf’s freeze.
In it, senior councillors say: ‘Leaders wish to reaffirm the position that the decision on council tax can only be made by each full council and it is therefore for each individual council to determine their own level of council tax.’
If councils do defy Mr Yousaf and raise taxes, it would be a body blow for hard-pressed families already struggling with the cost-of-living crisis – but would also be politically damaging for the First Minister.
Last night one council insider confirmed Mr Yousaf, pictured, now faced the prospect of furious local authorities refusing to deliver on his flagship promise.
The source said: ‘Councils are very angry. They are intending to lobby hard for a better settlement at the next stage of the budget process.
‘Many leaders are saying if they don’t get a better settlement they will i ncrease council tax. The Greens will be lobbied particularly hard – their Cosla group leader has signed the letter.
‘The SNP group leader has signed it too – so both SNP and Green councillors are demanding a better deal and saying the freeze is not fully funded. A number of leaders have said they will refuse if it’s not improved – they feel they cannot recommend a freeze to their councils. ‘It’s fair to say the First Minister is now facing a significant rebellion by councils.’
Last week’s Scottish Budget provoked a backlash over tax rises for thousands of workers as well as swingeing cuts. Ms Robison, who is also Deputy First Minister, blamed a £1.5 billion black hole in her financial programme on Westminster cuts.
Her draft budget proposed giving local authorities £144 million in return for them freezing council tax – only about half of the sum experts said was needed to fully fund the move.
Now councils have received further details of their overall draft budget settlement for the next financial year but say it falls far short of the £14.3 billion revenue and £838 million capital funding needed ‘just to stand still’.
Cosla has now set out ‘significant concerns’ over the ‘far-reaching and severe implications’ of the shortfall. In the letter, Cosla political party group leaders warn that the current proposals could lead to service cuts, job losses and ‘an inevitable shift to providing statutory services only’. The Cosla chiefs say that could mean ‘losing libraries, leisure centres and all the things that improve our lives and wellbeing’. Councillors also demand the Scottish Government ‘urgently reconsiders’ the draft funding settlement and ‘engages in meaningful negotiations to improve our funding position and protect the essential services our communities rely on’.
Signatories include councillors Douglas Reid, Cosla SNP group leader, and Alys Mumford, of the Greens, as well as Shona Morrison, Cosla’s first SNP president.
Last night Liz Smith, Tory finance spokesman, warned that the First Minister was facing a ‘colossal humiliation’.
She said: ‘Humza Yousaf announced a council tax freeze as a way to get a cheap cheer at his party conference. But it was never within the SNP Government’s powers, and the recent Budget made it clear that it meant savage cuts to local services.
‘If it is challenged, it would be a colossal humiliation for this incompetent and financially illiterate SNP government.’
However, Shona Robison claimed councils were receiving more money than ever thanks to her Budget.
She said: ‘The Scottish Budget includes record funding of over £14 billion for councils in 2024/25 – a real-terms increase of 4.3 per cent compared with this year’s Budget – should they agree to freeze council tax.’
‘First Minister now facing a significant rebellion’ ‘A way to get a cheap cheer at conference’