26 January 2007
Council tax bills in Scotland have risen by an average of nearly 60% in cash terms over the past ten years, a local government finance report has revealed.
Statistics published by the Scottish Executive show that since 1996, total council tax income has gone up from £1,194bn to £2,074bn last year.
The average Band D tax increased from £708 in 1996-97 to £1,129 in 2006/07, a rise of 59.5% in cash terms. This works out at an average of 5.3% a year. When inflation is taken into account, the rise since 1996 was 24%.
The scale of increase in council tax since Labour came to power in 1997 brought renewed calls for the system to be scrapped.
John Swinney, the Scottish National Party's finance spokesman, said the figures showed that the tax was unfair. He added: 'It penalises those on low and fixed incomes, which is why it's time to abolish it and replace it with a local income tax based on ability to pay.'
However, the finance spokesman for the Convention of Scottish Local Authorities, John Pentland, defended the council tax. 'A 24% increase over ten years is not beyond the realms of reality, especially when you consider utility bills can go up at this rate in one go,' he said.
The report shows that total council tax income for 2005/06 increased by 5.8% on the income received in 2004/05.
Improved collection rates and the successful recovery of debt from previous bills were responsible for tax income being greater than increases in the tax level and tax base.
The report also shows that in 2005/06, gross revenue expenditure by Scotland's local authorities rose by 8.6% to £16.8bn.
The figures come two months after a report by an Executive-appointed committee on the future of local government finance called for the replacement of the council tax with a local property tax.
The chair of the committee, Sir Peter Burt, told the Scottish Parliament's local government committee last week that if his proposed tax was implemented, 45% of households would be better off and 20% no worse off.
PFjan2007
