Several Scottish councils will raise taxes significantly due to funding changes and rising costs.
Comhairle nan Eilean Siar may raise taxes by 8%. North Ayrshire and Moray could raise them by 7%. Midlothian and Shetland already raised them by 10%. West Lothian increased theirs by 8.95%. Orkney may raise taxes by 15%.
This still needs full council approval. North Lanarkshire and Borders voted for 10% rises. Glasgow agreed to a 7.5% increase. Edinburgh will see an 8% rise. Fife passed an 8.2% increase. Councils face big financial problems, and service costs are also rising.
Raising council tax helps them fill these gaps. East Lothian was first, confirming a 10% rise. Band D homes in East Lothian will pay more. The annual bill goes up by £143.56; it will now cost £1,579.18. This happens despite government funding promises.
The government says councils get lots of cash. They think this should limit tax increases. But East Lothian says it is underfunded relative to their growing population. Councils across Scotland are raising taxes a lot. They say government funding has been dropping, and they must provide more services. The population is growing older.
They are tasked with adult care, support, and housing. These services are required by law. They face rising employer insurance costs, too. The UK government does not fully cover it all. Homeowners and renters pay council tax, which funds rubbish pickup, roads, and lights.
The freeze on these taxes is now ending. Councils can raise them to cover costs. The government hoped taxes would not rise so much and gave extra money to councils. Councils say the grant is a start; they faced frozen or capped rates for years. Councils have budget deficits, too.
In 2023, the government considered tax changes: People in pricier homes might pay more. They decided against changes right now, but this could change in the future. A report says councils may need big tax hikes to match funding in England.
English funding is increasing faster than Scottish funding. A funding expert spoke about the differences, looking at government money for councils. England’s funding is increasing more, and Scottish funding is not keeping pace. English funding will rise by 7.4% between 2023 and 2026. Scottish councils would need to raise taxes. An average rise of 18-19% is estimated, so expect more tax increases soon.