Scots town halls to be offered funds to freeze council taxes

1 Nov 07
Councils in Scotland will have access to a £70m fund if they agree to freeze council tax bills under proposals being considered by Finance Secretary John Swinney.

02 November 2007

Councils in Scotland will have access to a £70m fund if they agree to freeze council tax bills under proposals being considered by Finance Secretary John Swinney.

Although no official announcement will be made until negotiations on the local government finance settlement finish later this month, Scottish government sources have confirmed the plan for a fund.

Swinney, who has been involved in talks with individual councils and with leaders of the Convention of Scottish Local Authorities, is trying to persuade Scotland's 32 councils to agree to a freeze.

The ruling Scottish National Party has pledged that there would be no council tax increases while preparations are being made for its commitment to introduce a local income tax. As Swinney has no plans to cap councils, he has to persuade them to go along with his proposals voluntarily.

A spokeswoman for the Scottish government said it was continuing discussions with local authorities on a number of issues, including a council tax freeze.

She added: 'They take place within the context of a government prepared to relax ring-fencing and to move to a system of outcome agreements, which is clearly desired by local authorities as part of the process of establishing a better and more effective relationship between national and local government.'

Cosla president Pat Watters said councils would need the resources if they were to deliver on the government's priorities. 'We want to get it right, rather than do it too quickly, but councils need time to plan their budgets,' he said.

Scotland's biggest local authority, Labour-run Glasgow, has said that if it were to get £7m from the fund, its estimated share, it would agree to freeze its council tax rate for the third year running.

Stephen Curran, the city treasurer, said: 'We would need to be in terrible difficulty to say no to £7m and be seen to be running away from our responsibilities.'

PFnov2007

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