John Swinney has insisted Scots households should not face huge increases in their council tax bills next year.
The First Minister claimed he could “not dictate” to town halls over the setting of local rates for 2025/26 – but warned them to “exercise responsibility” on the matter.
It comes after the Scottish Government ended the council tax freeze – a long-standing SNP policy dating back to 2007 – following the publication of its draft Budget.
Most of Scotland’s 32 local authorities face massive financial pressures and have already began cutting services in order to make ends meet.
Perth & Kinross yesterday voted to hike council tax by 10 per cent next year and in 2026 in order to help balance its books, and other town halls are expected to follow suit.
Asked about the prospect of Scots facing huge bills, Swinney said: “The situation in local authorities is influenced significantly by the level of government grant – local authorities expected the government to give them a flat cash settlement.
“The Government has not done that. We’ve given them an inflation-proof increase in their budgets. So that gives councils more available resources to utilise to meet their local priorities.
“I think as a consequence of that, we should be confident that local authorities have no need to significantly increase the council tax as a consequence of the budget decisions we have made.
“All councils will be mindful of the cost of living pressures that families are experiencing at the present moment, and also mindful of the need to support local services.
“We look to local authorities to exercise responsibility when it comes to their council tax powers.”
The First Minister added: “The decision is for individual local authorities. I can’t dictate to local councils. They’ve asked me not to specify about a council tax increase or cap.
“This is democracy in action. Councils are free to take their decisions. But the Government has put in new resources to avoid significant increases in the council tax.”
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