Edinburgh councillors reject MSPs’ calls for exemption from council tax premium

Edinburgh councillors have rejected the Scottish Parliament Corporate Body’s request to exempt MSPs from a 300 per cent council tax premium for second homes in the city.

The request was made last week after the council decided to increase council tax premiums on second and empty homes from 100 per cent to 300 per cent.

However, councillors voted in favour of the move, resulting in second homeowners with properties in Band H facing annual council tax bills of approximately £16,000.

A report by the council last week confirmed the correspondence between itself and the SCPB. It said: “This correspondence requested that special consideration be given to costs incurred by those MSPs who live furthest away from their constituents and who are unable reasonably to commute each day.  

“The costs of providing accommodation in the city to relevant MSPs, including council tax-related liabilities, are met by the SPCB.”

It added: “Whilst recognising that MSPs are not specifically included as part of the job-related dwellings in the legislation, the SPCB has therefore asked that the council consider introducing an exemption from the premium for properties occupied by MSPs for the purpose of carrying out their parliamentary duties whilst in Edinburgh.  

“The Scottish Government has confirmed that the regulations contain sufficient flexibility for the council to introduce this exemption.”

The report stated that the exemption would have cost around £100,000 of annual income to the council.  

The Labour group tabled a motion stating that City of Edinburgh Council was the only local authority being asked to provide an exemption, and that MSPs were already able to claim premiums on expenses.  

It asked members to deny the call for exemption and was supported with amendments by SNP and Lib Dem councillors.

Labour councillor Mandy Watt said: “Unless I mistake the MSP rules, whether we accept the exemption or not there is no difference to MSPs. The rules for expenses say they can claim for Edinburgh accommodation and that they will be reimbursed.

“The main issue is whether MSPs’ expenses are covered by Edinburgh or the government.”

Watt added: “I think there is unanimity across the chamber that that is best left to the Scottish Government, not the council."

The new premium will come into force in January 2027 and is expected to generate £4m per year.