Scottish Parliament's local government committee seeks feedback on council tax reform proposals

Council tax demand letter via Flickr

The Scottish Parliament’s Local Government and Communities Committee is seeking feedback on the Scottish Government’s proposals to reform council tax.

Following the report of the Commission on Local Tax Reform late last year recommending that council tax be scrapped, the Scottish Government outlined its proposals for change in March.

It put the legislation before the Scottish Parliament this week.

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The Scottish Government proposes putting up bands E-H while keeping bands A-D the same.

Band E will go up by 7.5 per cent, Band F by 12.5 per cent, Band G by 17.5 per cent and Band H by 22.5 per cent.

The Scottish Government would also lift the current council tax freeze, but cap the amount that local authorities can raise council tax at three per cent per year.

There would be no revaluation of properties, which currently sit in the bands based on what their values were, or would have been, in 1991.

  The effect of the band changes means that the average band E household will pay around £105 per year more and the average household in the highest band will pay around £517 per year more.

However, there will be targeted relief for around 54,000 households in properties in Bands E-H who are on net incomes below the Scottish median for their household type, up to a maximum of £25,000.

Questions have been raised about the implementation of the proposals, which are due to come into force in April 2017, including the effect on those councils with fewer properties in higher tax bands, how the three per cent increase cap will be enforced and how the extra money raised, which has been promised for schools, can be ringfenced for that purpose.

The local government committee is looking to find out what support there is for the Scottish Government proposals.

It is also asking people to comment on whether the proposed reforms make the system of council tax fairer and how straightforward the changes will be for local authorities to implement, as well as their thoughts on the system of relief for those on lower incomes.

Bob Doris MSP, Convener of the Local Government and Communities Committee, said: “These proposals represent the first change to council tax in Scotland since its introduction in 1993.

“We want to hear from people across Scotland about how they view the increases in local taxation for Band E-H properties.

“The changes are intended to result in a fairer system of local taxation, so we’re particularly keen to receive comments on this aspect.

“Another key aspect of the Government’s council tax reform is its proposed council tax reduction scheme which will provide targeted relief for an estimated 54,000 households in bands E-H.

“Any evidence the committee receives on this will be passed to the Social Security Committee which will be looking in detail at this element.”

The consultation is open until 28 September.