Scottish council tax to remain the same for third year running

18 Sep 09
Council tax payers in Scotland will have their bills frozen for a third successive year following budget plans announced by Finance Secretary John Swinney
By David Scott

17 September 2009

Council tax payers in Scotland will have their bills frozen for a third successive year following budget plans announced by Finance Secretary John Swinney.

A Scottish Government spokesman told Public Finance this week that, over the past two years, the council tax freeze had provided vital relief to householders ‘in these tough economic times’.
He added: ‘We will continue to work with our local government partners to deliver a further council tax freeze.’

The Scottish Government’s confirmation that it would again fund a council tax freeze in 2010/11 came as Swinney prepared to announce details of the draft budget on September 17.

The no-increase council tax policy was first introduced in 2008/09 after a concordat was signed by the Holyrood minority administration and local authority leaders.

So far, all of Scotland’s 32 councils have co-operated with the policy, having taken advantage of a £70m incentive offered to councils willing to implement a freeze.

However, individual councils believe it will become increasingly difficult to maintain a freeze in the next financial year because of pressure on local budgets.

In a television interview prior to the budget announcement, Swinney said he was ‘very confident’ that the tax freeze could be repeated.

He added: ‘We have to get the balance right between protecting services and promoting economic recovery and making sure that individuals are supported into the bargain.’

Earlier this year, Swinney announced that he was shelving the Scottish National Party’s plans for a local income tax for the remainder of the current parliamentary session but would aim to continue the council tax freeze. 
 
The SNP claimed this week that it faces a £500m cut in the Scottish budget because of a decision by the UK Treasury to reduce the expected increase in the block grant for 2010/11. The Scottish Labour party argued that there would be a real-terms increase. 

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