Council tax proposed to rise for larger properties

People living in houses in council tax bands E, F, G and H are in line for weighted increases in the amount they pay, under changes to the council tax system put out to consultation by the Scottish Government.

The joint consultation with COSLA, the Convention of Scottish Local Authorities, aims to address criticism that the system is unfair, because those in the lower council tax bands pay a higher proportion of the value of their property than those in the higher bands.

Across Scotland, about 28% of properties fall into the higher bands, though the percentage varies from area to area: in East Renfrewshire, for example, about 57% of houses are in bands E to H, compared with 11% in Na h-Eileanan Siar. The bands are based on values set in 1991 for when council tax was introduced in 1993.

The proposed changes would mean band E residents paying an extra 7.5%, band F an extra 12.5%, band G an extra 17.5% and band H an extra 22.5%, from the next financial year – though it is suggested that the changes could be phased in over three years. The existing council tax reduction scheme would continue. 

Public Finance Minister Tom Arthur commented: "We have listened to calls for the council tax system to be made fairer, as presently more of the burden falls on those in the lower bands when considered as a proportion of the value of their property.

"The changes would only affect around a quarter of properties and even after they are taken into account, average council tax in Scotland would still be less than anywhere else in the UK.

"We know that many people are struggling with their finances and our council tax reduction scheme is there to ensure nobody has to pay a council tax bill they cannot be expected to afford, regardless of what band they are in."

Find the consultation here. The closing date is 20 September 2023.