09 November 2007
A freeze on council tax in Scotland could cost £30m more than originally estimated, according to a survey of individual local authorities.
Ministers in the Scottish National Party government plan to set up a £70m fund that can be accessed by councils that are prepared to hold next year's tax at 2007-08 levels. This would be in line with a commitment given in the SNP's manifesto for the elections in May.
However, a survey carried out by the Liberal Democrats in Scotland claims that returns from nearly three-quarters of Scotland's 32 councils show that the total bill could be more than £100m, leaving a £30m 'black hole'.
The disclosure will be a setback for Finance Secretary John Swinney unless he is able to make up the shortfall.
The minister has been holding meetings with individual councils and the Convention of Scottish Local Authorities to persuade them to agree to a tax freeze. The SNP promised to freeze council tax while preparations are made for the introduction of a local income tax.
PFnov2007
