A Scots town hall is set to defy First Minister John Swinney by jacking up council tax bills by 10.6 per cent. Labour-run East Lothian council is also planning rent rises of 6.5 per cent during a cost of living crisis.
Swinney said in a recent interview that his Government’s draft budget is positive for councils and means big rises are not needed. Asked if 10 per cent is too high, he said: “I think it is, yes.” He added: “I don’t think that’s necessary, to be honest.”
It is understood East Lothian council is mulling over a rise in excess of 10 per cent to balance the books. The deadline for submitting final budget proposals is Thursday.
We revealed last week that Glasgow council is considering a five per cent rise, considered to be on the lower end of the spectrum compared to other local authorities.
Previous First Minister Humza Yousaf was blasted after freezing council tax last year, a move town halls said was squeezing their finances.
Swinney, whose draft Budget will be voted on today, has talked up his funding deal for councils: “I think if you had a quiet conversation with council leaders where they were not being bound by certain things, they would say to you, ‘We got a better settlement than we thought we were going to get’.
“I think that’s the case. That’s what they say to me as well in private moments – possibly, they might think these were reckless conversations to have with me, but they’ve had them. And I think as a consequence, that means council tax increases don’t need to be as high.”
The FM continued: “I’ve seen some pretty hostile reactions from local government to government budgets over my time, and the local government reaction to the budget this time round has been pretty welcoming.”
Council umbrella group COSLA has described the funding plan as a “step in the right direction”, but insisted “significant pressures” remain.
East Lothian Tory councillor Lachlan Bruce said: “If this is true, Labour’s plans to raise council tax by 10.6% will be met with anger by taxpayers in East Lothian. Rather than doing the hard work of trying to improve the council they look set again to save money by cutting red tape and wasteful spending, Labour look set to once again punish the working people of East Lothian.”
An East Lothian council spokesperson said: “The council’s budget is still in development. Decisions on the budget for 2025/26, including council tax levels, are expected to be confirmed at our budget-setting meeting, which is due to be held on 18 February.”
SNP Finance Secretary Shona Robison said: “Local authorities provide some of the most important services to our communities – from schools to social care – which is why we’re increasing their funding by more than £1 billion compared with last year’s Budget.
“The settlement is the result of meaningful budget engagement with COSLA and Councils. While Council Tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in Council Tax next year.
“We have repeatedly urged the UK Government to fully fund its employer National Insurance increase, and are still awaiting clarity on this issue.”
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