20 August 2004
Councils in Scotland are urging the Scottish Executive to give them freedom to decide how to spend a potential extra £25m in income when the 50% discount on council tax on second homes is abolished.
Although councils in England can already reduce the discount to 10%, the discretion in Scotland will not apply until the start of the financial year 2005/06. Finance Minister Andy Kerr said the resulting extra income would be retained locally and used to provide new-build alternative social housing.
John Pentland, finance spokesman for the Convention of Scottish Local Authorities (Cosla), said the use of any additional resources should be decided locally.
Cosla's housing spokesman, Douglas Reid, said councils were aware that some areas had larger concentrations of second homes than others and would therefore benefit more from the potential funding.
'We hope this funding is genuinely additional to local areas and does not reduce the resources available from other funding streams,' he said.
In Argyll and Bute Council, 11% of properties attract a 50% discount on council tax bills, the highest property percentage in Scotland. Council leader Allan Macaskill welcomed the Executive's decision, saying it would allow the council to raise an estimated £1.73m.
He added: 'However, I am both surprised and disappointed that it would appear that any extra funds raised are being ring-fenced to housing.'
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