Reform council tax, Cosla urges parties ahead of Scottish Parliament election

Council tax must be reformed by the next Scottish Government, local leaders say.

The Scottish Parliament election in spring 2026 will be a “defining moment” for local government, according to sector body Cosla.

Unveiling its manifesto, it is calling on the next Holyrood administration to provide “realistic, long-term funding”, including multi-year funding, to help authorities plan local services.

It is also seeking an end to ringfencing and “restrictive, centralised targets” on measures like teacher numbers so that government priorities do not “stifle local decision-making”, and a major increase to cash for social care.

And it calls for reform of council tax within the next parliamentary term and the devolution of new revenue-raising powers.

The document is published today ahead of Cosla’s conference in November. Moray councillor Shona Morrison, president of the nation-wide body, said: “We cannot continue to ignore the vital role of local democracy in delivering better outcomes for the communities we are elected to represent. 

“For many years, local decision making has increasingly shifted away from these communities, limiting their ability to shape local priorities. This at a time when local government has been left to do more with less. 

“This manifesto is a turning point. It sets out the clear case for a new relationship with national government – one built on parity of esteem, trust and shared ambition.”

The Scottish Government has said that, as it receives an annual settlement from Westminster, it cannot provide multi-year deals for local government.

And while the SNP was initially elected under a manifesto which included a vow to “scrap the unfair council tax”, the system remains in place.

Under the leadership of Humza Yousaf, the Scottish Government signed the Verity House Agreement (VHA) with Cosla, making local government equal-partners in relevant decision-making.

It included a ‘no surprises’ clause, with councils expected to receive notification of any major policy shifts before their announcement to the wider public. However, this was breached months later when Yousaf announced a council tax freeze in an SNP conference speech, without prior discussion with town halls.

The manifesto calls for “full commitment” to the VHA principles, saying it must “move from rhetoric to reality” and arguing that the current system is eroding public trust and weakening services.

Cosla says its 32 member regions are tackling a combined funding gap of £647m, with the workforce headcount down 11 per cent since 2013, Meanwhile, costs and demand for services such as housing and social care continue to rise.

Morrison said: “We cannot deliver for the people of Scotland if we do not allow for local flexibility and place trust in councils and their partners to work with local people, families and communities. Our councils must have the tools to make real decisions, the powers to raise income locally, and the respect to shape services without interference.”

She continued: “We are ready to work constructively with all parties, but we will not accept anything less than parity of esteem, fairness and the power to act for our communities."

The Scottish Government said: “Local government is a crucial partner in helping to deliver better outcomes for the people of Scotland. That is why we have provided councils with a record £15.1bn this year, a real terms increase of 5.5 per cent, and have delivered a wide range of powers for local councils.

“Our joint Local Governance Review with Cosla will conclude by the end of the parliament, setting out how power and resources can be better shared between national and local government and with communities.”