Approval agreed on council tax increase
West Lothian Council has formally agreed a council tax rise of three per cent.
However, a Westminster intervention will cut council tax bills by an average of £2.15 a week.
The Scottish Budget Bill approved recently confirmed funding of £280 million to provide £150 to every household in receipt of Council Tax Reduction in any band and to provide £150 to all other occupied households in Bands A to D. The £2.15 cut will be to Band D properties.
Prior to the Westminster announcement, the three per cent increase would have meant a Band D property in the county would have seen a charge of £1,314.71 per year for more than 71,000 homes. The three per cent increase equates to an extra 74p per week for a Band D property.
If Council Tax had been frozen in 2022/23, the council would have had to reduce spending by a further £2.7 million, which would also have further implications for future years as the costs add on to future budgets.
The SNP argued that, along with rents, council tax is one of the few direct levies the council controls and thus one of the few direct ways it can help those struggling with rising bills.
Depute SNP group leader, Frank Anderson, said during the budget debates on a rent increase that a rise would mean families would be losing an extra £155 a year from rent and council tax increases - wiping out the effects of having £150 taken off the council tax bill.
Outlining council tax increases in a paper to the Partnership and Resources PDSP, depute chief executive Graeme Struthers, pointed out mitigating factors. Although council tax is applied to all houses, not all households are eligible to pay council tax.
There are exemptions and discounts in place to help the most vulnerable in society as well as protecting low income households. In West Lothian, 2824 Band D properties are in receipt of some kind of exemption or discount. Any increase in council tax would be offset by an increase in CTRS, as long as the claimant’s circumstances remain the same.