WITH the council tax freeze imposed last year to come to an end this April, Scots across the country are facing various tax increases.
Recent and continuous reports indicate that several Scottish local authorities are considering significant council tax increases to address financial challenges.
Scotland’s Finance Secretary Shona Robison urged local authorities to avoid big increases in council tax as she gave them an extra £1 billion in the draft of the Scottish Budget.
Robison said the cash will mean councils can “deliver the services people rely on” – telling local authorities the settlement means there is “no reason” for them to impose large hikes in council tax once this year’s freeze comes to an end.
However, the Convention of Scottish Local Authorities estimates these will be an additional £265 million cost pressure for councils in 2025-26.
Why do councils continually increase their tax?
LOCAL authorities are continually short of cash year-on-year because of shortfalls between committed spending and expected funding.
This year, it is projected to be as high as £392m with a potential increase to £780m in 2026/27.
A budget gap of £759m was closed in 2023/24, with another faced in 2024/25 of £585m.
Council tax is also currently levied based on “bands”, with more expensive properties in higher bands. However, as many as half of all Scottish properties are thought to be in the wrong bands.
Common Weal’s head of policy Craig Dalzell previously told The National that reforming council tax could see lower bills for as many as eight in 10 Scots, in part due to incorrect banding.
How much could my council tax increase by?
Perth and Kinross Council has confirmed it is proposing a 10% rise this year, followed by a 10% increase next year, and 6% the year after that.
East Lothian and Scottish Borders are contemplating increases of 10.6% and 10%, respectively.
Edinburgh is considering an 8% hike, and Glasgow may see a 5% increase.
Midlothian and East Ayrshire are also reportedly looking at 8%.
North Lanarkshire Council are considering several options, covering rises of 12.49%, 7.44%, 10% and 13.76%.
Reports have suggested West Lothian is considering a rise of 5.8%, and South Lanarkshire are looking at 5%.
Updates on Aberdeen, Aberdeenshire, Angus, Argyll and Bute, Clackmannanshire, Dumfries and Galloway, Dundee City, East Ayrshire, East Dunbartonshire, East Renfrewshire, Falkirk, Fife, Highland, Inverclyde, Moray, North Ayrshire, Orkney Islands, Renfrewshire, Shetland Islands, South Ayrshire, Stirling, West Dunbartonshire, and Western Isles (Eilean Siar) councils will follow.
What are the Scottish Government saying?
FIRST Minister John Swinney has urged councils to keep tax increases to a minimum, and 10% was too high.
When asked if he believes a 10% increase would be too high, he said: “I think it is, yes. I don’t think that’s necessary, to be honest.”
Robison also published guidance to keep tax hikes minimal.
The Institute for Fiscal Studies (IFS) has criticised Scotland's current council tax system as outdated, noting it is based on property valuations from 1991.
Updating these valuations could lead to significant changes in tax bills, with about 18% of Scottish homeowners potentially facing increases between £50 and £500, and 17% of households facing decreases within the same range.
The Scottish Government recently initiated a consultation to explore potential reforms to create a fairer system.
When will I find out if my council tax is increasing?
LOCAL authorities across the country are currently deliberating budgets and council tax rates for the upcoming financial year.
While specific figures have not been finalised, residents are advised to stay informed as individual councils are meeting to set their budgets in late February and early March.
