17 February 2006
First Minister Jack McConnell hinted at the prospect of a reorganisation of local government in Scotland as local authorities set council tax levels with an average rise of 3.3%.
Tax figures for 2006-07 ranged from a surprise freeze in Glasgow, Scotland's biggest council, to almost 5% in four council areas.
On the day that the figures were being announced, McConnell was asked in the Scottish Parliament whether he agreed that after almost seven years of devolution a reappraisal of the role, function and accountability of local government was overdue. 'That time might be fast approaching,' he replied.
His comment comes when the Scottish Executive is already examining the possibility of merging a number of councils for the provision of certain services, such as education.
A paper seeking views on changes that could also result in a reorganisation of health boards, local enterprise companies and other public bodies is due to be published within the next few weeks.
A full-scale reorganisation would mirror those being contemplated in England and Wales in the wake of the Lyons review, and that already proceeding in Northern Ireland.
The refusal of most of Scotland's 32 unitary councils to limit council tax increases to 2.5% – the target set by McConnell – is thought to have reinforced ministers' determination to press ahead with changes to the system.
Ministers insisted that their £8.4bn funding settlement was 'reasonable by any standards', but most councils denied this.
John Pentland, finance spokesman for the Convention of Scottish Local Authorities, said local government had done its best to dampen down council tax rises, but this had not been possible in a number of areas because of underfunding by the Executive.
The 3.3% average rise has resulted in a new Band D tax of £1,130, compared with £1,094 for 2005/06.
Glasgow City Council denied suggestions it had managed to freeze its council tax at the 2005/06 Band D level of £1,213 as a result of a deal with the Executive, stressing that it had produced a balanced budget through tough decisions.
Elsewhere, the increases ranged from 2.2% in West Dunbartonshire to 4.9% in Clackmannanshire, East Ayrshire, East Renfrewshire and Moray.
PFfeb2006
