Former first minister, Alex Salmond has said he can “see no reason” why the current Scottish Government cannot give local government the cash for a council tax freeze to help Scots deal with the current “cost of living crisis”.
The one-time SNP leader said even though the administration led by his successor, Nicola Surgeon had found additional funding for councils in next year’s budget, many local authorities were still likely to “implement inflation-busting council tax rises on hard-pressed families”.
The former first minister has written to Finance and Economy Secretary Kate Forbes, urging her to implement the policy that his government previously adopted.
He told her that in the aftermath of the 2008 financial crisis, his government had introduced the measure in a bid to help Scottish families who were “facing the prospect of being forced into poverty”.
Mr Salmond insisted: “If it was possible for my government to secure a good settlement for local government, in the midst of a global financial crisis, that fully funded a freeze in council tax, I can see no reason why the current Scottish Government cannot do likewise.”
Mr Salmond, who is now leader of the Alba Party, told Ms Forbes: “The current cost of living crisis is set to have an unprecedented impact on the financial position of many Scottish households.”
He noted inflation had reached the highest level since 1992, with this likely to be “exacerbated further by out of control energy price rises, which will see many household electricity and gas bills reach unaffordable levels this spring”.
While he said the UK Government were “yet to address any of the major challenges which are contributing to the cost of living crisis”, one way Holyrood ministers could help was by freezing council tax bills.
We believe there should be no requirement for any inflation-busting increases
Mr Salmond said: “Alba called for an additional £135 million of funding to local government to fully fund a council tax freeze this year, in order that the Scottish Government did not add to the cost of living crisis that the UK Government have created.”
He said this “would have represented the equivalent of a 4.5% increase to council tax”, telling the Finance Secretary: “Although it is welcome that you have identified an additional £120 million to answer our call, the absence of mainstreaming this funding on a recurring basis, means that many councils will still take the decision to implement inflation busting council tax rises on hard-pressed families.”
A Scottish Government spokesman responded: “Last week, the Finance Secretary announced an additional £120 million for local authorities, equivalent to a 4% increase in council tax next year.
“This takes the overall 2022-23 local government funding package to more than £12.6 billion, an increase of more than £1 billion, or 6.1% in real terms, compared with 2021-22 – so we believe there should be no requirement for any inflation-busting increases.
“Councils have full flexibility to set council tax rates for 2022-23 – flexibility they asked for and which ensures they are accountable to voters for local tax and spending choices.
“In setting council tax rates, we expect local authorities to take full account of local needs and of the impacts on household budgets.”
